Monday, October 2, 2023

The Ministry of Finance “bites” your savings or investments, the tax increases tenfold

Mexico City.- Next year, due to the need for resources that the federal government will have, the interest income tax will increase almost tenfold, from 0.15 to 1.48 percent.

This means that the taxpayer pays more for the interest received on savings or investment vehicles.

The worst affected will be those who have an ISR in their favor but do not claim a refund in their annual return.

“Based on the observed information on public and private values ​​and inflation, the provisional withholding tax rate for interest paid by the financial system will be updated, which will be 1.48 percent in 2024,” indicates the federal income law initiative next year.

This is the largest increase in the debt ISR rate since interest was taxed, said Ramsé Gutiérrez, co-director of investments at Franklin Templeton.

“In 2023, the interest rates achieved are very similar to the market reference rates, but in 2024 it will be very different since this provisional tax will be withheld by the financial institutions and paid to the SAT,” he commented.

For every 100 pesos earned by investing in interest income, only about 84 pesos would be received, Gutiérrez explained as an example.

Juan Carlos Pérez Góngora, financial expert and president of the Mexican Business Council, attributed the measure to the federal government’s urgency for resources as the projected income deficit shot to a level of 7.3 percent of GDP.

Nation World News Desk
Nation World News Desk
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