As part of the tax reforms for 2022, the opinion of financial statements for tax purposes will be mandatory again. On November 12, 2021, several modifications were made to the articles related to the Tax Opinion. These changes have generated questions since the Tax Opinion goes again from optional to mandatory if the taxpayer falls within the assumptions established in Mexican law.
To which taxpayers does it apply?
For the tax opinions corresponding to the tax year 2022, to be filed in 2023, the legal entities that in the last immediately preceding fiscal year (e.g., for the tax year 2022, the taxable income obtained during the year 2021 will be considered) have reported taxable income for Income Tax equal to or greater than MXN 1,650,490,600 (approximately USD 78,594,790) will be required to audit their financial statements through a Certified Public Accountant, as well as those who, at the end of the immediately preceding fiscal year, have shares placed on stock exchanges.
It is important to consider that the Tax Opinion could also apply mandatorily to taxpayers who carry out mergers and/or divisions and who are in any of the established assumptions of Mexican legislation, for which we recommend that an evaluation be carried out in advance.
When does it have to be filed?
It must be submitted no later than May 15 of the year following the end of the year in question. At this moment, we do not know if any resolution will be issued to extend the submission deadline, as happened with the financial statement opinions corresponding to the fiscal year 2021, which must be submitted no later than July 15, 2022.
It is important for Companies to evaluate beforehand if they are required to file a tax report since they must choose their External Auditor. By choosing their external auditor in advance, the Companies will be able to identify possible risks per tax and customs provisions timely.
Other relevant changes in Foreign Trade
As of January 1, 2022, the financial statements auditor must report if the company has failed to comply with tax and customs provisions or has carried out any conduct that may constitute the commission of a tax crime.
The auditor in charge must consider the Foreign Trade obligations in the scope of his opinion, which companies commonly did not contemplate.
With these changes, the authority can hold an auditor accountable if there is negligence in foreign trade matters. Here are some points as an example:
1.- General obligations of the Customs and Foreign Trade Law:
• Among others, not having the documentation to prove the legal importation of foreign goods.
2.- Obligations linked to authorizations, concessions, standards, registrations, or patents:
• Maquiladora companies (IMMEX), importers register, and sectoral, among others.
3.- Tax offenses related to Foreign Trade:
• If the exporter or producer of merchandise falsely certifies its origin, omitting the total or partial payment of contributions, etc.
As of 2022, with the creation of the New National Customs Agency, which replaces the SAT in the customs area, and the Federal Government’s new collection goals, it is recommended that your company consider evaluating its Foreign Trade exercise through a health-check to reduce the risk associated with International Trade operations.
How can we help?
At JA del Rio, we have various services related to filing the Tax Opinion. Some of our services are:
• Audit of financial statements for the filing of the Tax Opinion.
• Tax compliance review.
• Foreign Trade health-check.
• Preparation of the Transfer Pricing report.
• Executive diagnosis of payroll, income, and expenses CFDIs.
• Advice on the implementation of an adequate internal control system.
If you require more information regarding this topic, contact us. We will be pleased to assist you.