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Mexico will tax Avon, Tupperware, Uber, Didi, and Rappi

The Minister said that the government has not considered taxing apps such as Facebook or Netflix

President López Obrador promised not to create new taxes - Photo: Left: Elise Amendola/AP; Right: Diego Simón/EL UNIVERSAL
10/09/2019 |11:29Newsroom |
Redacción El Universal
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Mexico

's Finance Ministry proposed a new scheme that will make it easier for people who sell products such as Avon, Natura, Jafra, Mary Kay , Tupperware , among other catalog sales , to pay income tax . The proposed scheme is part of the 2020 budget and will be mandatory for all the catalog sales companies .

The companies will have to determine, deduct, and pay the calculated tax over the difference between the suggested sale price and the purchase price, applying the tax income tariff that corresponds to each natural person.

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Arturo Herrera

, the Finance Minister , also announced that starting on January 2020, the federal government will implement a tax on the services generated through digital platforms such as Uber, DiDi, Cabify, Rappi , among others.

The tax will be implemented to the company , the driver , and a third tax for the importation , a sort of royalty because there are transnational companies.

During the presentation of the 2020 budget, the Minister said that the government has not considered taxing apps such as Facebook , Twitter , or Netflix , among others in 2020 because an international agreement could be reached next year.

Herrera insisted that the Finance Ministry won't create digital taxes but said that it will create new tools to collect taxes associated with digital platforms .

With this new proposal, taxpayers who earn MXN $300,000 or less won't have to pay additional taxes.

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