Insights from J.A. Del Río: Mexico UBO Reform and US

Praxity member firm J.A. Del Río has shared two important updates this August, targeted at businesses operating in or with Mexico. Below is a short summary to help you understand the potential impact. For full details and practical guidance, read the full articles on J.A. Del Río’s website.

1) Mexico tightens Ultimate Beneficial Owner rules under LFPIORPI

A reform to the Federal Law for the Prevention and Identification of Transactions with Resources of Illicit Origin (LFPIORPI) was published on 16 July 2025 and took effect on 17 July 2025 (with some exceptions). Key changes include new obligations for all commercial entities, even those not engaged in Vulnerable Activities, to:

Identify the Ultimate Beneficial Owner (UBO) as a natural person or group of natural persons.

Keep documentation that supports identification.

Respond to authority information requests.

Register the UBO in the Ministry of Economy’s electronic system per SHCP guidelines, even if the UBO is not a direct shareholder.

Submit notices in the shareholder or equity registry on transfers and security interests.

Importantly, the ownership threshold for UBO voting rights drops from 50% to 25% to qualify for UBO status Also note that the LFPIORPI UBO definition differs from the Federal Tax Code, so companies should document both.

Read the full analysis by J.A. Del Río Here

2) US–Mexico tariffs: 90-day extension from 1 August 2025

Following a call between Presidents Claudia Sheinbaum and Donald J. Trump, Mexico and the United States agreed to extend current tariff conditions for 90 days from 1 August 2025. This preserves the operability of USMCA during ongoing talks. Summary points include;

No immediate change to existing tariffs.

USMCA rules of origin continue to govern preferential treatment.

Current tariffs for automotive, steel and aluminium remain while technical negotiations continue.

Non-Tariff Regulations and Restrictions will be reviewed in the wider USMCA process.

Read J.A. Del Río’s full trade update Here

Taxperience of The Netherlands joins the Praxity Alliance

We’re proud to announce that Taxperience, based in the Netherlands, has joined the Praxity Alliance.

Insights from J.A. Del Río: Mexico UBO Reform and US–Mexico Tariff Extension

1) Mexico tightens Ultimate Beneficial Owner rules under LFPIORPI