GRAND RAPIDS (G.R. Business Journal) -- Changes to Mexican tax law that went into effect Jan. 1 will affect West Michigan auto suppliers and other manufacturers with operations south of the border.
Joel Mitchell, a partner at Plante Moran in Grand Rapids, said the 2014 Mexican Tax Reform covers a broad range of issues, from dividends and corporate tax rates to manufacturing requirements and value-added tax, or VAT. Mitchell said there are two specific changes West Michigan companies need to pay particular attention to: elimination of the flat tax and a new tax on dividends.
Mexico's flat tax, which is commonly known as IETU, was repealed in its entirety. Mitchell said the net effect will be favorable for taxpayers, eliminating a complicated calculation in terms of tax planning and projections.
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