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International Restructuring Newswire
Welcome to the Q2 2024 edition of the Norton Rose Fulbright International Restructuring Newswire.
In Mexico, foreign direct investments (FDI) are regulated by the Foreign Investment Law (FIL). Under the FIL, as a general rule, foreign investors are afforded the same rights, obligations and remedies available to Mexican nationals.
However, forcing investors are required to obtain approval from the National Commission of Foreign Investment (Commission) if they wish to obtain an equity stake of more than 49 percent of the shares of a Mexican company with assets whose aggregate value at the time of the acquisition exceeds the threshold determined annually by the Commission (currently about USD$1 million) and which is active in any of the following sectors:
To obtain approval, foreign investors must file a questionnaire detailing the origin of their investment and pay a nominal fee. The Commission has 45 business days to issue its approval.
In addition, Article 27 of the Mexican Constitution provides that foreigners are not permitted to acquire direct domain over lands and waters within one hundred kilometers from the national borders inland or fifty kilometers from the seashore. Also, foreign capital is capped at 49 percent in certain strategic sectors, including: shipping, broadcasting, air transportation, and port administration.
Like other jurisdictions, throughout 2020 Mexico was very active in issuing administrative resolutions, decrees and recommendations to mitigate, contain and address the COVID-19 pandemic. However, no such resolutions, decrees or recommendations were specifically directed towards FDI, rather, all such resolutions were (and in some cases continue to be) applicable to private investment in general.
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Welcome to the Q2 2024 edition of the Norton Rose Fulbright International Restructuring Newswire.
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The Canadian Federal Budget 2024 proposes to broaden the scope of certain powers allowing CRA to request information from taxpayers, and sets out new consequences for non-compliant taxpayers.
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The alternative minimum tax is an additional income tax imposed under the Income Tax Act on individuals and certain trusts who would otherwise be able to reduce their ordinary Canadian federal income tax through the use of certain deductions, exemptions or credits.
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