The Unconstitutionality Of The Additional Tax On Dividends In Mexico Inconstitucionalidad De La Tasa Adicional De Impuesto A Los Dividendos En Mexico

In Mexico, during the 2014 tax reform, a tax surcharge of 10% on dividends was levied on individuals effectively diminishing the collective return of these investors. This levy is a disincentive to new investments which poses a stark public policy contradiction between policy intended to promote private investment and current tax policy. This study evaluated the constitutionality of this surcharge, considering the principles of legality, proportionality and equity. A qualitative method of explanatory nature was used employing an inductive, deductive, analytical, and synthetic methodology. Additionally, significant documentation was collected and analyzed which reveals the relevant legal precedents and doctrine that emanate from the constitutional principles. The results conclude that regarding the legality principle, this surcharge does comply with the legal standard because it derives from an established legislative process and incorporates the essential tax elements; nevertheless, in regards to the principles of proportionality and equity, the additional tax was found to discriminate arbitrarily against corporate shareholders without justifying on any objective basis the rationale for penalizing this group of taxpayers versus any other segment of contributors. The study concludes therefore, that the surcharge in question is unconstitutional based on the guiding principles of proportionality and equity