The amount of new Banamex sales on the stock market, free of taxes, is limited in the current rule. The sale of goods through the Stock market in Mexico is taxed with a 10 percent tax on the profits obtained from the sale, if the business is outside the Mexican Stock market, the tax can escalate up to 35 percent, explained Robert Colin Mosqueda. .
A member of the Fiscal Technical Commission of the Public College of Mexico explained that in the case of the initial public offering (OPI), planned by Citigroup to divest its consumer and corporate banking businesses in Mexico, another element was added that would make it possible. The calculation of taxes in this type of transaction is more elaborate: the treaty to avoid double taxation that is in force between Mexico and the United States of America.
After Citigroup announced the sale of its business in the country in January 2022 and Germán Larrea’s Grupo México became the last competitor in the acquisition, almost a year and a half of negotiations disappeared in the context of the struggle between the federal government and the conglomerate. the second richest in Latin America for 120 kilometers of railway.
On Monday, May 22, sources at Grupo México said there were no signs that the Banamex acquisition process was continuing. However, Citigroup has announced that it will stop selling its business in Mexico for the time being, but will resume the initial public offering in 2025. President Andrés Manuel López Obrador said the transaction was dead due to problems with securities. Mexico Group.
Colín Mosqueda explained that now, if a foreign resident is going to sell shares of a Mexican company, which was initially used, if the transaction is done off-site, it can come to the general rate, which can be 30-35 percent. if it takes place in the Mexican market, it is 10 percent of the income from the transaction.
There is also a treaty to avoid double taxation between Mexico and the United States of America, which in many cases lowers this type of operation, he explained.