Those coming from the royalties referred to in Article 15 -B of the Tax Code of the Federation. The fees provided for in Sections I and II of this Article shall not apply if the beneficial owners, either directly or indirectly, individually or jointly with related persons, they receive more than 5% of the interest derived from the securities in question and are: 1. XXII. This account will be added to the net fiscal utility of each financial year, as well as to the dividends or profits received from other moral persons resident in Mexico and with the income, dividends or profits subject to tax regimes. loan as long as these funds have been invested in the purposes of the activities referred to in this Section and the corresponding tax voucher is obtained. In financial transactions arising from debt where differences are not settled during their lifetime, the cumulative or deductible interest shall be that resulting in profit or loss, in accordance with this article. XXIV. The difference resulting from the taxpayer in the terms of this Article shall be entered in the offices authorized at the latest in the month of February following the calendar year in question. The bimonthly payments referred to in this section shall be as definitive. 15 -B of the Tax Code of the Federation, provided that such disposal is conditioned on the productivity, use or subsequent disposal of the same goods or rights. Investments shall begin to be deducted, at the choice of the taxpayer, from the year in which the use of the goods is initiated or from the following year. Those obtained, up to the equivalent of twenty general minimum wages in the geographical area corresponding to the high taxpayer per year, for allowing third parties the publication of written works of their creation in books, newspapers or magazines, or the reproduction in series of recordings of musical works of their creation, provided that the books, newspapers or magazines, as well as the goods in which the recordings are contained, are destined for their alienation to the public by the the person making the payments for these concepts and whenever the creator of the work expunts for such revenue is the respective tax voucher. The percentage referred to shall be calculated in accordance with the general rules which the Tax Administration Service may issue for that purpose. In the annual statement to be presented, the tax utility and the amount corresponding to the participation of the workers in the earnings of the company. e) Support for the activities and objectives of the National Council for Culture and Arts-dependent museums. In the case of real estate, the updated cost shall be at least 10% of the amount of the disposal in question. If the acquisition was made outside of the aforementioned Exchange, the lower cost of the transaction price and the average quote on the Stock Exchange above mentioned on the day on which they were acquired will be considered as such cost. Parties and political associations, legally recognized, will have the obligations to retain and find out the tax and to require tax vouchers when making payments to third parties and are obliged to do so in the terms of law, as well as keeping accounting and preserving it in accordance with the Federation's Fiscal Code and its Rules of Procedure. The amount to be determined in the terms of this paragraph shall not be cumulative or deductible. V. That the trustee issue certificates of participation for the assets that integrate the trust's assets and that such certificates are placed in the country between the large investor public or acquired by a group of Foreign banks, including investment banks, provided they are the beneficial beneficiaries of interest. The use of a place of business for the sole purpose of buying goods or goods for the resident abroad. The income determined in the terms of this article, net of the declared, shall be deemed omitted by the preponderant activity of the taxpayer or, if applicable, other income in the terms of Chapter IX of this Title. XXI. Mexico January 20 2022. childcare, cultural and sporting activities and other social welfare benefits of a similar nature. This tax credit will not be cumulative for income tax purposes. of the realization of its social object. If you can't read this PDF, you can view its text here. c) The protection, conservation, restoration and recovery of the nation's cultural heritage, in the terms of the Federal Law on Monuments and Zones b) Dealing with credits whose principal fortunes on the day of maturity are greater than thirty thousand units of investment when the creditor has sued against the judicial authority the payment of the credit or the agreed arbitration procedure has been initiated for its recovery and in addition to that provided for in the final paragraph of the previous subparagraph. Foundations, patronages, and other entities whose purpose is to financially support the activities of moral persons authorized to receive deductible donations in the terms of this Law, may obtain Deductible donations, provided they meet the following requirements: a) Destinations the entire revenue for the purposes for which they were created. For the purposes of the preceding paragraph, the company which has had the character of the controller may increase the registration of the account of the Consolidated net tax utility the amount resulting from the reduction in the amount of tax losses for which the deferred tax referred to in point (a) of Article 4 (VIII) of the Transitional Provisions was determined of the Law on Income Tax, published in the Official Journal of the Federation on 7 March In December 2009 or in Part I of Article 71-A of the same Law, the income tax that has been imposed on them in terms of the provisions set forth. It is also understood to be effectively perceived when the interest of the creditor is satisfied by any form of extinction of the obligations. The recovered amount not reinvested within the period specified in the fifth paragraph of this Article shall be adjusted by multiplying it by the update factor corresponding to the period from month to that the recovery was obtained and up to the month in which it is accumulated. Article 54. Article 78. PDF Mexican Tax Reform for 2020 published in Official Gazette - EY That the shares that are part of the restructuring do not fall to a person, entity or legal entity that does not belong to that group, within Payments for customs services, other than the fees of customs agents and the expenses incurred by such agents or the moral person established by such customs agents in the terms of the Customs Law. Persons who are obliged to hold a withholding tax in accordance with Article 96 of this Law shall calculate the annual tax of each person who has provided him with subordinate personal services. Article 157. Companies that provide the air public transport service. Not to be considered as income subject to preferential tax regime, those that are generated on the occasion of an average participation per day in foreign legal entities or figures that does not allow the taxpayer have the effective control of them or the control of their administration, to a degree such that they can decide the moment of distribution or distribution of the income, profits or dividends of them, either directly or by person. Such declaration shall be submitted by 15 February of each year at the latest. Colleges of professionals and the organizations that group them together. Upon completion of that period, they shall be taxed under the scheme of natural persons with business and professional activities as referred to in Section I of Chapter II of Title IV of this Law. When the financial transaction resulting from capital is settled in kind with the delivery by the resident abroad of the shares or securities to which the transaction is concerned, the provisions of the Article 161 of this Law for the disposal of shares or securities involving such delivery. In cases where insurance is intended to provide benefits to workers, the provisions of the previous section must be observed. Natural persons residing in Mexico who are subject to the payment of the tax abroad under their nationality or citizenship, may carry out the accreditation referred to in this Article until for an amount equivalent to the tax that they would have paid abroad if they did not have such a condition. Article 108. Taxpayers who prior to the entry into force of this Law have opted for make the immediate deduction of new assets of fixed assets, in accordance with Chapter II of Title VII of the Income Tax Act, which is repealed, they may not deduct the non-deductible part thereof. The monthly average of the inventories will be determined by the sum of these inventories at the beginning and end of the month and by dividing the result between two. For such purposes, the trustee will present a statement for its own activities and another for each of the trusts. In the case of natural persons, they shall not pay income tax on income from such activities up to an amount, in the financial year, 40 times the general minimum wage corresponding to the geographical area of the taxpayer, high per year. In no case will you proceed to request the return of the non-accredited amounts in the exercise. The part of the loss which could not be reduced in the financial year may be applied in the following five financial years to the end of the financial year in which it occurred and up to the last month of the financial year in which the loss occurred. d) 25% for telephone central equipment intended for switching of technology calls other than electromechanical. Also considered are loans backed by those transactions in which a person grants a financing and the credit is guaranteed by cash, cash deposit, shares or debt instruments of any kind, of a part XVIII. The payment made under this article will be accreditable against the tax of the year. In the case of the information declarations referred to in Articles 76 of this Law, and 32, fractions V and VIII of the Law on the Value Added Tax, they must be submitted within the time limits set by the aforementioned Article 76 and count from that date with the corresponding tax vouchers. b) Information about operations with third parties. The taxpayer must pay the tax on the real interest by applying the average tax rate it paid to it in the previous immediate years in which it paid this tax to the taxpayer. The amounts that are collected for the purpose of carrying out expenditure on behalf of third parties, unless such expenses are supported by tax vouchers issued to the name of the person on behalf of whom the expenditure is incurred. Article 122. Submit a notice to the tax authorities prior to the completion of such restructuring, including the group's organisation chart, with the ownership and a detailed description of all the steps that will be taken in it. The adjustment referred to in the preceding paragraph is not applicable to determine the gain from the disposal of shares and certificates of deposit of goods or goods. You are registered in the Register of Trusts dedicated to the acquisition or construction of real estate, in accordance with the rules issue the Tax Administration Service. The use of methods described below in Sections II, III, IV, V and VI is allowed only when the CUP method is not appropriate to determine the arm's length nature of a transaction. Not to be considered income from disposal, which results from the transfer of ownership of property by reason of death, donation or merger of companies or those resulting from the disposal of bonds, of securities and other receivables, provided that the income from the disposal is considered to be of interest in the terms of Article 8 of this Law. Payments will be made by nominative check, the key in the federal taxpayer register of who issues it, as well as on the front page the balances of the net tax profit accounts shall be reduced by that utility. Article 86. XVIII. The trust institution must bear an account for each type of income it receives from the shares and the securities, as well as from those arising from the disposal of them, and those arising from the financing granted to them. If you dispute them or their returns, for various purposes, it shall cover the respective amount imposed on the levy set out in Article 9 of this Act. as appropriate. an integrated fiscal result of the financial year between the sum of the tax results obtained in that financial year by the integrating company and its integrated companies in the integrable participation. II. Submit, by 15 February of each year, to the tax authorities and by means of the official form which the authorities approve, the following information: a) The outstanding balance at 31 December of the previous year, of loans granted to you or guaranteed by residents abroad; and. For this purpose, the tax utility of the year in which the coefficient is calculated shall be divided between the nominal income of the same financial year. Article 91. You will not be required to pay the tax referred to in this article when dividends or profits come from the net tax income account established by this Act. When the amount of the investment is higher than the market value of the goods or the guarantor that the tax authorities are ordered to practice or practice, the lower value shall be taken for the purposes of the deduction. For the interpretation of the provisions of this Chapter, the Guidelines on Transfer Prices for Multinational Enterprises and Fiscal Administrations, approved by the Council of the European Union, will be applicable. The Regulation of the Income Tax Law dated October 17, 2003 will continue to apply in what is not opposed to the present Income Tax Law and until a new Regulation is issued. In the case of leasing contracts, revenue earned in the financial year in which they are payable shall be considered as income derived from any of the options referred to in Article 15 of the Fiscal Code of the Federation. For the purposes of the last paragraph of Article 152 of the Income Tax Act, the oldest month of the period to be considered shall be the month of December 2013. The proportional share referred to in the preceding paragraph shall be calculated by considering the number of square metres of construction of the unit by the occupied or granted free of charge in relation to the total square metres of construction of the immovable property. b) Keep b) That is agreed to a term of less than one year. To do the disposal or the payment in payment, in terms of the Income Tax Law that is repealed. In the case of royalties, the deduction may be made in the terms of section III of Article 33 of this Law, only when they have actually been paid. 1,414,947.85. XIV. XV. In this case, the representative will calculate the tax that will result and will find out by statement in the authorized office that corresponds to your home address within 15 days of obtaining the income. The proportional share corresponding to the taxpayer of the distributable remnant to be determined by the moral persons referred to in Title III of this Law, provided that the tax referred to in the last paragraph of Article 79 of the same Law was not paid. IV. For the purposes of the foregoing Article, credit shall be deemed to be the right of a person who is a creditor to receive from another debtor an amount in number, among others: the credit rights acquired by the financial factoring companies, investments in shares of investment companies in debt instruments and the derivative financial transactions referred to in Article 20 (IX) of this Act. III. IV. VII. Revenue omissions or unrealized and improperly registered purchases. 2. The property owner must accumulate income from the disposal of such assets and pay the tax in the terms of Chapter IV of Title IV of this Law. V. dividends or profits distributed by foreign resident companies. III. The loss shall be determined in accordance with Article 31 of this Law. For these purposes, the tax utility of the financial year shall be determined by reducing all the cumulative income obtained by the business activities or by the provision of professional services, the deductions authorized in this Section, both for the financial year concerned. In addition, the date of issue of the tax vouchers of a deductible expense shall correspond to the exercise by which the deduction is made. V. That insurance premium payments or sureties are made in accordance with the laws of the matter and correspond to concepts that this Act points to as deductibles or the obligation to hire them in other laws and provided that, in the case of insurance, during the life of the policy, no loans are granted by the insurer, to any person, with a guarantee of the insured sums, premiums paid or from the mathematical reserves. Article 113. e) When you get annual revenue from the concepts referred to in this Chapter that exceed $400,000.00. The members or shareholders of the investment companies referred to in this Article and Article 88 of this order, who are natural persons, may in their case deduct the loss to be determined in accordance with the fifth paragraph of Article 134 of this Law, in the terms of that provision. Taxpayers who suffer losses in the disposal of real estate, shares, social parts or certificates of equity issued by national companies credit, such losses shall be reduced in accordance with the following: I. II. II. The amount of the daily tax per share shall be multiplied by the number of shares held by the shareholder at the end of each day. the following requirements are met: I. For the purposes of this numeral, the special concepts of consolidation and fiscal losses of prior years, as well as losses in disposal of shares in the controlled companies and the controller shall be added or subtracted, as appropriate, in the consolidated holding of the financial year 2013. Taxpayers who have not made the land after the third immediate post-exercise exercise after which they were acquired, should consider the cost of acquiring such land as a cumulative income, updated by the period from the date of acquisition of the land and until the last day of the month in which the entry is accumulated. When the integrative company or the integrated companies have investments as referred to in Article 176 of this Law, the integrative company or its integrated companies shall not consider the taxable income, the tax income or tax result, derived from such investments in order to determine their tax outcome or tax loss and shall be within the meaning of Article 177 of that Act. The information referred to this fraction will be made available to the Secretariat of Finance and Public Credit, in the terms of the second paragraph of Article 69 of the Tax Code of the Federation. recognised, in the terms laid down in the Law on Commercial Concourses, of the outstanding losses they have in the financial year in which they are forgiven by those creditors. When taxpayers make the deductions referred to in this Article and suffer losses in the disposal of real estate, shares, certificates of equity issued by companies National credit and social partners may reduce such losses in the calendar year in question or in the following three, in accordance with Article 122 of this Law, provided that they are in the case of shares or certificates of (i) the financial contribution of the European Commission to the European requirements to be set by the Regulation of this Law. In order to determine the income tax that must be added to the dividends or distributed profits, the amount of those profits or remittances will be multiplied by the factor of 1.4286 and the result will be applied to the rate of Article 9 of the aforementioned income tax. This Law and its members or shareholders shall be as provided for in Articles 87, 88 and 89 of the same Law. Taxpayers will have to comply with the general rules that for the granting of the stimulus will publish the Inter-Institutional Committee refers to the fraction I of this article. XXVI. Investment companies which make payments for the disposal of the shares are obliged to carry out the withholding and the entire tax corresponding to the provisions of this Article. 3. Article 153. The expenses that are incurred in relation to investments that are not deductible according to this Title. 2. In the case of entities to which an authorization is issued to receive foreign-deductible donations under international treaties, in addition to complying with the above, they will not be able to receive excessive amounts of income. parcelaries or community members, as well as their quality of ejidatary or community by means of the certificates or corresponding titles referred to in the Agrarian Law. When the accumulated balance of the global preventive reserves for which the option provided for in Article 53 of the Income Tax Law was exercised which is opened, which in accordance with the tax provisions or those laid down by the National Banking and Securities Commission, have the credit institutions at 31 December of the financial year in question, whichever is less than the cumulative balance updated of the abovementioned reservations which would have been taken on 31 December of the immediate financial year the difference shall be considered as a cumulative income in the financial year in question. Mexico budget proposes numerous tax law changes: PwC It is presumed that the service is fully provided in Mexico when it is proved that part of the service is provided on national territory, unless the taxpayer demonstrates the part of the service he provided abroad, in which case the tax is In the case of the second and subsequent changes, it must be at least five years after the last change; when the change is to be made before that deadline, the requirements laid down in the Regulation must be complied with. It is considered interest income for the purposes of this Chapter, those set out in Article 8 of this Law and the others who have the same treatment of interest. equivalent to $152,000.00, considering all concepts. 2. III. The resulting tax shall be added to the tax calculated in accordance with the preceding fraction. with the tax that he would have had to pay to have accumulated in each exercise the part of the profit for the disposal of goods referred to in the fraction I of this article. The federative entities will maintain in force the powers of verification referred to by the Fiscal Code of the Federation and the Law of Income Tax that is repealed, so that it makes the tax obligations of the taxpayers for the financial year 2013 and earlier. In finance lease contracts, the difference between total payments and the original amount of the investment is considered to be of interest. Article 180 of the same. pending application, may deduct, in addition to the provisions of Article 27 (XV) of this Law, the amount of the quests, grants, bonuses and discounts on the portfolio of credits representing services for which interest on their behalf, as well as the amount of the losses arising from the sale (a) to carry out such a portfolio, and for any losses incurred during payment. the financial year in question and shall be calculated, in the terms of this Title, the tax corresponding to the cumulative revenue. XI. in the same. The value of the disposal of the shares to be considered for the purpose of determining the gain shall be that which was used between independent parties in comparable transactions, or taking into account the value of the shares held by the tax authorities. IV. Cash or property deliveries from the trust that the trustee will make to the trustees will be considered capital repayments provided until such capital is recovered and decrease the balance of each of the individual capital accounts held by the trustee for each of the trustees until the balance of each of those accounts is exhausted. They may be kept in such establishment provided that the requirements and conditions laid down in the Regulation of this Law are met. Proportional amount of corporate income tax paid abroad referred to in the fourth paragraph of this article. The value added tax and the excise duty on production and services, which would have been transferred to the taxpayer or the tax payer, will not be deductible. III. The federal income tax, regulated by the Income Tax Law (the "Law"), is the most important tax in Mexico, as it produces the highest portion of total taxes collected. Taxpayers who exercise the option referred to in the last paragraph of Article 120 of this Law shall apply the 5% rate on the gain to be determined in accordance with that paragraph in the the financial year in question, which shall be entered by a declaration to be filed with the federal entity on the same payment dates as set out in Article 150 of this Law. OF WAGES AND SALARIES IN GENERAL FOR THE PROVISION OF A SUBORDINATE PERSONAL SERVICE. Provide, evidence of income and tax proof for the awards for which the tax is not required in the terms of the tax Law. VIII. V. Comply with the obligations set forth in this Law on the retention and integer of taxes charged by third parties or, where appropriate, be held on these copies of the documents in which the payment of such taxes is recorded. Erogations that are not deductible under this Law and benefit the shareholders of moral persons. That at the time of the disposal of the land, the total value of the disposal of the land in question is considered to be cumulable, instead of the II. The Tax Administration Service may issue in general rules a pro-rata mechanism to simplify the calculation of taxable interest for investment companies in debt instruments that have in their portfolio securities exempt. XIX. III. For the purposes of the calculation referred to in the preceding paragraph, the amount of expenses incurred by foreign residents for subordinate personal services relating to the operation of maquila, which are provided or used on national territory, shall comprise the total of the salary paid in the tax year concerned, including any of the benefits referred to in the rules of character General that the Tax Administration Service, granted to the person, is issued physical. Goods acquisitions, as well as raw materials, semi-finished or finished products, used to provide services, to manufacture The legal representative of the succession will pay in each calendar year the tax on behalf of the heirs or legatees, considering the income in a joint manner, until the end of the settlement of the succession. $1.74. MPI2: with the five-year period provided for in the third paragraph of Article 64 of that Law, they shall be as follows: a) On the occasion of the abrogation of the Income Tax Act, the controlling company must unconsolidate all the companies in the group, including and to pay the deferred tax which they have pending from the whole to 31 December 2013, applying for such effects the procedure provided for in Article 71 of the Income Tax Act which is opened, or the following The retention referred to in this paragraph shall not be made when the income is received by the taxpayers referred to in Title II of this Law or the moral persons referred to in Article 86 of this Law. The result obtained according to this fraction shall be applied to the rate of the said article being treated as natural persons, or the rate set out in Article 9 thereof, in the case of moral persons. Mexican charity is governed by Article 22 of the United States -Mexico Income Tax Convention ("Treaty") and Paragraph 17 of the accompanying Protocol. The interest earned in the exercise, without any adjustment. Interest is the gain derived from the disposal of a resident abroad, of credits by a resident in Mexico or of a resident abroad with permanent establishment in the country, when they are acquired by a resident in Mexico or a resident abroad with permanent establishment in the country. Article 126. The Mexican Congress approved with some adjustments the Tax Bill presented by the President on September 8, 2019, that included a proposal of Decree through which various provisions of the Income Tax Law, the Value Added Tax Law, the Special Tax on Production and Services Law and the Federal Tax Code are amended, added, and repealed (the "2020 Tax Reform"), and the bills that generated the . The natural persons resident in the country who obtain income from those mentioned in this Title, in order to calculate their annual tax, may, in addition to the deductions authorized in each Chapter of this Law that correspond to them, the following personal deductions: I. debtor for unpaid interest. Taxpayers who, as of December 31, 2013, are authorized to determine their consolidated tax result in the terms of Chapter VI of Title II of the Income Tax Act that is repealed, and are within of the five-year period referred to in the third paragraph of Article 64 of that Law, may continue to determine the consolidated income tax during the fiscal years to be completed to conclude that period, in accordance with the provisions laid down in that Chapter and in Chapter V of the Title II of the Regulation of the Law on Income Tax and other provisions that were found in force on 31 December 2013.