Daily Tax Report: International

Tech Groups Press U.S. to Fight Mexico’s Digital Tax Plan

Oct. 15, 2019, 10:34 PM

Mexico’s lawmakers are preparing to vote on boosting tax collection from digital companies, and major U.S. tech industry groups are trying to enlist the U.S. government to fight the effort.

The Mexican government’s proposal to extend the country’s income and value-added taxes to digital services, including by asking companies to withhold taxes in certain digital transactions, requires approval by Mexico’s congress by Oct. 31.

Mexico is trying to boost tax collection from digital services provided through an app, like ride-sharing and delivery platforms; media consumed on social media sites; and streaming content, Finance Minister Arturo Herrera said Oct. 15. Speaking...

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