GRBJ: Costs heading north, south of the border

7:56 AM, Jan 13, 2014   |    comments
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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Mexico's flat tax, which is commonly known as IETU, was repealed in its entirety.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.

You can read the entire article at the website of our news partner, the Grand Rapids Business Journal, or you can pick up the latest edition of the journal on your newsstand.

 

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