RIF, THE MEXICAN STRATEGY TO COMBAT INFORMALITY

Abstract

His paper evaluates the effectiveness of the strategies established by the Mexican government since 2014 to decrease the activity carried out by companies in the informal economy. That goal should be reached through the diminishing of informality with incentives to those in the informal economy. These incentives to formality include reduction of income tax, simplification of procedures, access to social security with special fees and credit at preferential rates as well as training to improve business processes. We found that far from increasing the base of taxpayers’ natural persons with Business and Professional Activities the same base has decreased by 9.39% since the Fiscal Reform in 2014.