The Supreme Court of Justice of the Nation (SCJN) in Mexico has issued a key ruling on the constitutionality of Article 307 TER of the Mexico City Tax Code.
This article establishes a tax on individuals and legal entities that engage in intermediation, promotion, or facilitation activities through the use of digital applications or platforms, requiring them to pay a special contribution of 2% for each delivery made in the capital.
Under the argument that these activities have an impact on the capital’s infrastructure, the money raised would be invested in equipping Mexico City’s roads.
What happened?
The SCJN reviewed the revenue as a tax and determined that the revenue established in Article 307 TER should be classified as a tax and not as “profit,” as it possesses all the essential elements of a tax.
It ruled that the taxable event is the digital activities of economic intermediation, not the use or exploitation of public property, as initially proposed.
Therefore, the SCJN decided that the 2% tax that Mexico City wanted to apply to delivery apps would be temporarily waived.
Why was the collection halted?
Because the court found that the Mexico City Legislature has the power to establish certain taxes, as long as they do not encroach on the exclusive spheres of the Federation.
Furthermore, the Legislature lacks the authority to create laws related to e-commerce, since by establishing a tax on income generated by these activities, it would be regulating something that falls within the federal sphere.
Therefore, since this is a local law that addresses issues already covered by federal legislation, it invades a jurisdiction that does not correspond to it, rendering it unconstitutional.
The judicial authority determined that the tax proposed by the Mexico City government could immediately affect the platforms’ operations and impact the finances of thousands of families.
Source: infobae
