A historic amendment to the legislation related to electronic negotiable instruments regulation, was published on March 26. Key points include acknowledgment of the validity of electronic negotiable instruments and their equivalence to negotiable instruments issued in a traditional manner, regulatory changes in connection with General Deposit Warehouses, Electronic Deposit Certificates, and the repeal of provisions on pledge bonds. These reforms aim to modernize legal frameworks, enhance security, and streamline transactions, marking a significant step forward in Mexico's commerce landscape, among other advantages.
With the recent amendment to rule 7.3.3., subsection XIII, of the Foreign Trade Feneral Rules 2023 (text that prevailed for the Foreign Trade General Rules 2024), a new scenario of joint responsibility was born for companies transferring goods under the virtual operations through pedimentos code “V5”. This entails a great responsibility and additional administrative burden for the manufacturing and exporting industry.
The Supreme Court determined the unconstitutional nature of the requirement by the Ministry of Labor (STPS by its acronym in Spanish) requiring evidence of the specialized nature of the services or works that are going to be provided within the incorporation into the Registry of Contractors of Specialized Services or Specialized Works (REPSE by its acronym in Spanish).
The agreement published on February 21st, 2024, modifies the articles contained on the general provisions for the registry of individuals or legal entities that provide specialized services or execute specialized works referred to in article 15 of the Federal Labor Law (LFT by its acronym in Spanish).
The investigative authority of the Federal Economic Competition Commission in Mexico (“COFECE”) issued a preliminary opinion identified with the file number IEBC-001-2022, by which it is concluded that there are no effective competition conditions on the national retail e-commerce market (“Investigated Market”) due to the possible existence of three barriers to competition and free market participation.
The investigative authority of the Federal Economic Competition Commission in Mexico (“COFECE”) issued an opinion where it determined that certain individuals and entities may be responsible for the commission of absolute monopolistic practices (cartel) within the non-residential real state sector. This derives from and investigation commenced in 2020 due to the possible manipulation of prices within the market of leases of non-residential properties in Mexico.
On December 28, 2023, the Mexican government published a decree amending, adding, and repealing various provisions of the Securities Market Law and the Investment Funds Law (the “Decree”). The purpose of such amendments is to increase competitiveness in the Mexican market and enable small and medium-sized enterprises to participate in the stock market.
On December 29th, 2023, the General Tax Rules (Resolución Miscelánea Fiscal in Spanish) for the fiscal year 2024 was published, as well as exhibits 1, 5, 8, 15, 19 and 27. The purpose of such document is to gather the general provisions on taxes, products, benefits, contributions for improvements and tax rights, with the exception of those related to foreign trade.
Among the amendments to the General Tax Rules, we identified two of utmost importance worth considering for the day-to-day operation of companies in Mexico.
Among the annual obligations of establishments, whether commercial, industrial, or service establishments, it is the renewal of the corresponding municipal business license, as well as of advertisements, as applicable.
Nearshoring between Mexico, the United States and Canada is emerging as a key business strategy in today's international business landscape. Geographical and cultural proximity from the main markets, supported by trade agreements such as the United States–Mexico–Canada Agreement or USMCA, offers companies the opportunity to optimize their operations and reduce costs without sacrificing quality. Tax incentives implemented by the Mexican government add an additional attraction, providing strategic sectors with a framework for growth and investment. In this context, nearshoring not only boosts efficiency and competitiveness, but also contributes to sustainable economic development in the region.
As of October 22nd, 2023, foreign individuals who intend to transit through Mexican international airports must, in all cases, have a visitor visa (non-eligible to carry out professional paid activities).
In order to facilitate and optimize meetings of the shareholders and management bodies of corporations and companies in Mexico, on October 20, 2023 an amendment to the General Law of Commercial Entities was published, which allows, among other matters, that shareholders and board meetings to be held through any electronic, optic or technological means (such as videoconference meetings though electronic platforms).
