As part of the recent changes in the tax legislation, on April 2nd the new Federal Tax Code Regulations were published in the Official Gazette. Please find below a summary of the most relevant changes:

Deadlines

Regarding documentation and information for which filing has to be done within a certain time frame, the regulations state that when using the Buzón Tributario, reception hours will be from 00:00 am to 23.59 pm. Notifications through the Buzón Tributario If taxpayers log in to their Buzón Tributario to consult digital documents pending to be notified outside of business hours, the notification will be considered effective as of the following business day.

Joint Liability

Regarding joint liability for tax purposes, effective control to manage an entity’s administration, strategy or main policies, this can be expressly granted or implied.

Tax ID Registration

Employees will have to provide their employer with the necessary information in order to be able to be registered with the Taxpayer Federal Registry; if the employee is already registered they will need to provide the corresponding documents that prove it.

Electronic Review

If when carrying out an electronic review the Tax Authorities request information and documents from a third party, the third party in question will be obliged to provide the information required within 15 business days as of the notification date.

Presumed Income

When a taxpayer receive payments for having carried out an operation regarding a used good and that good is then sold at a loss, the Tax Authorities will have to consider the global operation in order to determine if the sale was carried out at cost or for less. The Tax Authorities also establish that they will be able to review payments made abroad, when the beneficiary is a foreign tax resident with no permanent establishment in Mexico.

Tax Audit

As was mentioned in our previous bulletin, Statutory Tax Audits will be optional, no longer an obligation, as long as the company obtains accruable income of over 100 million pesos, assets of over 79 million pesos in value or had a least 300 employees the previous year.

Inexistent Operations

If the Tax Authorities detect that a taxpayer carried out inexistent operations, notification of these acts will be made first of all through the Buzón Tributario, then through the Tax Authorities’ website and finally published in the Federal Official Gazette.

Taxpayers will have 15 days to provide the documentation and information to prove to the Authorities that the operations do exist. It is also established that the Authorities will be entitled to request additional information to that already provided by the taxpayer.

Accounting Microfilming

Taxpayers that chose to microfilm their documents will have to comply with the general regulations authorized by the Tax Authorities.