On February 7, the Federal Administration of Public Revenue updated the thresholds regarding income tax prepayments on assets held abroad with respect to fiscal periods 2019 and 2020. The regulation came into force on February 7.  

The income tax prepayments for the fiscal periods mentioned above must be made by people owning assets abroad that are covered by this tax. The amount of the prepayment will be applied to “total taxable assets abroad” as reported for the 2018 and 2019 fiscal periods. The percentages for this tax will be as follows:

• 0.10% for goods under 3 million pesos, inclusive.
• 0.22% for goods between 3 million and 6.5 million pesos, inclusive.
• 0.40% for goods between 6.5 million and 18 million pesos,  inclusive.
• 0.50% for assets of 18 million pesos and over.

These rates will not be applied to people repatriating financial assets of at least 5% of the total value of assets located abroad until March 31 of each year, and the corresponding amounts must be deposited in financial institutions until December 31 of the calendar year when they were repatriated.

The guidelines establish that people not owning taxable assets abroad as of December 31, 2019, or December 31, 2020, depending on the period in question, will also be exempt from paying this tax.