Business Reforms in Mexico
= Doing Business reform making it easier to do business. = Change making it more difficult to do business.
Dealing with Construction Permits: Mexico made dealing with construction permits costlier by increasing several fees. This reform applies to both Mexico City and Monterrey.
Getting Electricity: Mexico (Mexico City) improved the reliability of electricity supply by installing smart meters, extending the medium-voltage network and implementing a new system to remotely restore power service.
Registering Property: Mexico (Monterrey) made registering property more expensive by increasing the municipal property transfer tax.
Registering Property: Mexico made registering property easier by digitizing its land records, improving the quality of the Land Registry infrastructure and making the registration process more efficient.
Labor Market Regulation: Mexico adopted a resolution that eliminated geographic differences in national minimum wages. Prior to the reform Mexico was divided into two zones—zone A and zone B—with different applicable minimum wages. This reform applies to both Mexico City and Monterrey.
Getting Credit: Mexico improved access to credit by implementing a decree allowing a general description of assets granted as collateral. This reform applies to both Mexico City and Monterrey.
Paying Taxes: Mexico made paying taxes easier for companies by abolishing the business flat tax—though it also made paying taxes more costly by allowing only a portion of salaries to be deductible. These changes apply to both Mexico City and Monterrey. In addition, the payroll tax rate paid by employers was increased for Mexico City.
Getting Credit: Mexico improved access to credit by amending its insolvency proceedings law and establishing clear grounds for relief from a stay of enforcement actions by secured creditors during reorganization procedures. This reform applies to both Mexico City and Monterrey.
Resolving Insolvency: Mexico made resolving insolvency easier by clarifying several rules, shortening the time extensions allowed during reorganization, facilitating the electronic submission of documents and improving the legal rights of creditors and other parties involved in bankruptcy procedures. This reform applies to both Mexico City and Monterrey.
Getting Electricity: Mexico made getting electricity easier by increasing the efficiency of the utility’s internal processes and by enforcing a “silence is consent” rule for the approval of the feasibility study for a new connection.
Trading across Borders: Mexico made trading across borders easier by implementing an electronic single-window system.
Enforcing Contracts: Mexico made enforcing contracts easier by creating small claims courts, with oral proceedings, that can hear both civil and commercial cases.
Starting a Business: Mexico made starting a business easier by eliminating the minimum capital requirement for limited liability companies.
Getting Electricity: In Mexico the distribution utility made getting electricity easier by streamlining procedures, offering training opportunities to private contractors, using a geographic information system (GIS) to map the electricity distribution network and increasing the stock of materials.
Dealing with Construction Permits: Mexico made dealing with construction permits faster by consolidating internal administrative procedures.
Getting Credit: Mexico strengthened its secured transactions system by implementing a centralized collateral registry with an electronic database that is accessible online.
Paying Taxes: Mexico continued to ease the administrative burden of paying taxes for firms by ending the requirement to file a yearly value added tax return and reduced filing requirements for other taxes
Starting a Business: Mexico launched an online one-stop shop for initiating business registration.
Paying Taxes: Mexico increased taxes on companies by raising several tax rates, including the corporate income tax and the rate on cash deposits. At the same time, the administrative burden was reduced slightly with more options for online payment and increased use of accounting software.
Starting a Business: Mexico made starting a business easier by establishing an electronic platform for company registration, by substantially reducing the time required for registration and by eliminating the requirement to register with the statistical office.
Paying Taxes: Mexico made paying taxes easier for companies by introducing electronic payment systems for payroll, property and social security taxes.
Paying Taxes: Mexico made paying taxes less costly for companies by abolishing the asset tax—though it also made it more difficult by introducing a new flat tax, a new withholding tax on cash deposit interest and new reporting rules for value added tax.
Resolving Insolvency: Mexico made reorganization more accessible by amending its bankruptcy law to allow debtors and creditors to enter into a reorganization agreement at any stage of the insolvency procedure.
Registering Property: Mexico issued a new notary fee schedule that reduced the cost of registering property.
Paying Taxes: Mexico made paying taxes less costly for companies by reducing the corporate income tax rate.