2014 Miscellaneous Tax Resolution
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2014 Miscellaneous Tax Resolution
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In December 2013 the 2014 Miscellaneous Tax Resolution was published in the Official Gazette which includes important changes to adjust to those made in the tax reform, please find below a summary of the most relevant aspects. Federal Tax Code Non-Working Days For Tax Authority (SAT) purposes, December 20th to January 6th will be considered as non-working days as well as April 17th and 18th, 2014, in addition to those mentioned in the Federal Tax Code. Offset Notifications Legal entities and individuals that file their tax instalments and final taxes through the “Servicio de Declaraciones y Pagos” (Payment and Filing Service) and choose to offset the amount owed against amounts in favor declared through the same system will not have to file the offset notification. This does not apply to companies who the previous year had an accrued income over $100,000,000 pesos, whose assets are over $79,000,000 pesos or had at least 300 employees in every month of the previous year, in this case they will have to file the information for the offset notification in accordance with tax laws. Digital Tax Receipt (CFDI) Storage Taxpayers that issue and receive CFDIs will have to store the XML files in magnetic or optic devices or using any other technology, in accordance with the rules established in the Federal Tax Code which specify that the printed version is only a means of proving the existence or the XML but is not valid for tax purposes, the XML will be the only valid document for deduction purposes. Receipts Issued to the General Public Taxpayers will be able to issue a daily, weekly or monthly CFDI for the total amount corresponding to receipts for operations carried out with the general public during the corresponding period using the generic tax ID (RFC): XAXX010101000. CFDI Issued for Payroll Payments Taxpayers that pay salaries will have to issue CFDIs, the printed receipt will have to be provided to the employee, and the XML will have to be sent to them electronically. Companies that are not able to fulfil the requirements established in the previous paragraph will be able to provide the printed CFDIs corresponding to the payments made to the employees. The invoice will have to include at least the following information: tax folio, company and employee RFC (Tax ID). Regardless of the worker’s CFDI date, the company will be able to deduct the salaries when payments are made. Regarding individuals whose previous year income is less than $500,000 pesos and companies that have not completely migrated to CFDI invoicing will have until April 1st 2014 to comply with this obligation as long as by that date 100% of invoices (CFDIs) for salaries paid from January to March have been issued. Dates to File the Tax Audit Report and Alternative Information to the Tax Audit Report Taxpayers obliged to, or that have chosen to, audit their financial statements for tax purposes, as well as those that chose to file the Alternative Information to the Audit instead, will have to do so according to the following calendar based on the first letter of their RFC (tax ID) or before the corresponding period:

RFC Letter

Dates

A to F

From the 13th to the 18th of June 2014.

G to O

From the 19th to the 24th of June 2014.

P to Z and &

From the 25th to the 30th of June 2014.

 

In the case of having chosen the Alternative Information to the Audit Report, this will have to be stated in the annual tax return taxpayers have to file at the latest in March 2014.

Document that will be Able to Accompany the Transport of Merchandise

Domestic merchandise owners will be able to prove their transport through the issuance of a CFDI or a printed receipt they have issued which states a $0 value, the RFC (tax ID) and specifies the reason for transporting the merchandise.

Income Tax

Informative Returns

Informative returns regarding operations with related parties abroad will be able to be done within the same timeframe as the tax audit report, for taxpayers who choose to file the report.

It is established that the informative return will not be mandatory for income subject to a preferential tax regime as long as Mexico has a broad information exchange agreement with the country the income comes from.

Deduction for Salaries Paid in Cash

Salaries paid in cash will be deductible as long as all the tax withholding requirements are fulfilled as well as the obligation to issue a CFDI corresponding to the payroll.

Travel Expense Deductions without Receipts

Regarding individuals that receive travel allowances which are used in favor of the employers, 20% of the amount received will not have to be supported by receipts as long as it does not exceed $15,000 pesos a year, these expenses will have to be paid by credit, debit or service card in the employer’s name.

Definition of Productive Activity for Maquiladora Purposes

A clarification is included regarding the term “all income for its productive activity”, which determines that the maquiladora will be able to consider as income received for productive activity that related exclusively to the maquila activity, as well as  income related to that activity as long as both incomes, costs and expenses are separated in the accounting. In order to allow current maquiladoras that carry out mixed activities (maquila and others non-related) to migrate or adjust their structure, this definition will come into effect on July 1st, 2014.

It is also established that maquiladoras that choose to request an Advance Pricing Agreement (APA) will have to give written notification by June 30th, 2014 at the latest.

Advance Pricing Agreement Applicable to Maquiladoras

In order to clarify article 182, third from last paragraph of the Income Tax Law, it is established that the individual resolution (APA) that a maquiladora obtains will allow to consider that the foreign tax resident with whom the operations are carried out does not have a permanent establishment in Mexico.

2013 CUFIN Integration for Dividends Distributed between Mexican Resident Companies for Profit Generated before 2014

Mexican resident companies that as of January 1st 2014 receive dividends or profit generated up to December 31st, 2013 from other Mexican tax resident companies will be able to increase the balance in the net tax profit account to December 31st, 2013 with by that amount.

This option will only apply as long as the dividends or profit in questions be registered in the accounting of the company that distributes then and the company that receives it does not increase the balance in the net tax profit account generated as of January 1st, 2014.

If you have any doubts or questions please feel free to contact us.

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