2021 Mexican Tax Reform

On December 8th, 2020, a Decree that reforms, adds and repeals provisions of the Income Tax Law, the Value Added Tax Law and de Federal Fiscal Code (the “Decree”) was published in the Federal Official Gazette, which came into effect on January 1st, 2021.

According to the Decree, several modifications and additions were made to the Federal Fiscal Code (“CFF”, per its acronym in Spanish), the Income Tax Law (“LISR”, per its acronym in Spanish) and the Value Added Tax Law (“LIVA”, per its acronym in Spanish). Among the main modifications are the following:

I. Tax invoices and digital stamp certificates for invoice issuance

1. Requirements of the tax invoices. According to the Decree, amendments to the CFF are considered regarding tax invoices or as known in Mexico “Comprobantes Fiscales Digitales por Internet” (“CFDI”, per its acronym in Spanish) and the digital stamp certificates for invoice issuance (“CSD”, per its acronym in Spanish).

Article 29-A of the CFF establishes that, in cases where the Taxpayer’s ID (“R.F.C.”, per its acronym in Spanish) is not known for invoicing purposes, the taxpayers issuing the CFDI can use a generic code, as if the operation were celebrated with the general public.

Also, it states that the catalogues provided by the Tax Administration Service (“SAT”, per its acronym in Spanish) must be used, in order to include in the CFDI the data corresponding to quantity, measure unite, type of goods or services, etc.

Finally, for payments at one or more exhibitions, but on a deferred basis, the mentioned provision clarifies that a CFDI must be issued for the whole operation, at the moment its being carried and, after, a CFDI will have to be issued for each payment received.

2. Payments considered as deferred for issuing a simplified tax invoice. For the purposes of Article 14 of the CFF, when taxpayers issue a simplified CFDI, it will be understood as if the transaction is carried in installments, with deferred payments. The above is also applicable to those operations carried with the general public, when more than the 35% of the total price is deferred until after the sixth (6º) month and the term agreed exceeds twelve (12) months.

3. New assumptions for canceling or blocking access to the digital stamp certificates. Through the Decree, two (2) new assumptions are added to Article 17-H of the CFF, establishing that the CSD will be cancelled: (i) when the tax authority detects that the person that issued the CFDI did not disproved the presumption of inexistence of the operations covered in the invoices, definitely locating itself in the list, according to Article 69-B of the CFF, and (ii) when it is detected that it is before a scenario where the taxpayer was not able to disprove the presumption of having, incorrectly transferred tax losses, locating itself in the list mentioned by the ninth paragraph of Article 69-B of the CFF.

For the same Article 17-H, the term of three (3) days increased to ten (10), for the tax authority to solve the request of the taxpayer to obtain a new CSD, once it has corrected all irregularity identified by the SAT. Such term will start to count from the immediately following day to such when the request was received by the authority.

On the other hand, Article 17-H Bis of the CFF, regulates the assumptions for the authority to be able to block the CSD, eliminating sections IV and X, corresponding to the two (2) assumptions added to the cancelation scenarios, previously mentioned. In this regard, a maximum term of forty (40) business days is contemplated for taxpayers who suffered a CSD block, in order to request a clarification and correction of the irregularities observed by the tax authority.

In case such term is exceeded without having presented the mentioned request, the SAT is able to cancel the corresponding CSD.

II. Contribution refund procedures

In the case of the procedure for requesting a refund of contributions provided in Article 22 of the CFF, the refund mechanic will proceed as it has been in the past, with the difference that the tax authorities are now able to consider the request was not filed in the following cases: (i) when the taxpayer is considered under the Taxpayer’s Registry as not located, or (ii) when the address of the taxpayer is not located under the Taxpayer’s Registry.

In such case, the Decree establishes that the five (5) years term that taxpayers have to request the refund of their credit balance will continue to run, not considering that the request that was considered as not filed interrupts the prescription of such right.

Also, Article 22-D of the CFF clarifies that, when there are several active refund requests by the same taxpayer, for the same contribution, the tax authority can audit the corresponding taxpayer for each or the whole amount of refund requests, allowing it to issue a single resolution for all the procedures.

For issuing the corresponding resolution, the term of ten (10) days is increased to twenty (20) business days, at the end of the term established for the audits.

III. Notice to the Taxpayer Registry by legal entities

Regarding the obligation for legal entities to file the notice at the Federal Taxpayer Registry, reporting their corporate structure, contemplated in Article 27, section B, subsection VI of the CFF, initially it was required that the notice contained the name and R.F.C. of the shareholders and partners, in order to provide SAT with real-time information of the corporate structure of legal entities.

By the Decree, it is stated that such notice must be filed every time a modification or incorporation of such structure is made, including not only partners or shareholders, but also associates or any other person forming part of the organic structure of the legal entity, and hold such character according to the bylaws or the applicable laws of the country of its incorporation.

IV. Infringement for concessionaries of public telecommunication networks and withholding for digital personal services

1. Fines for concessionaries of public telecommunication networks. Considering the provision of digital personal services by foreign residents who do not have a permanent establishment (“EP”, per its acronym in Spanish) in Mexico, several articles are added to the LIVA and LISR to allow the SAT to block their access to digital services, in case of not complying with their obligations, as well as for any omission in the payment of their corresponding taxes.

In line with the above, Articles 18-H QUÁTER and 18-H QUINTUS of the LIVA establish that the blocks or unblocks will be ordered by the tax authority and must be carried by the concessionaries of public telecommunication in Mexico, always according to a resolution legally based by the SAT. On the other hand, Article 113-D of the LISR establishes the same, when failing to comply with their withholding and payment of the corresponding income tax (“ISR”, per its acronym in Spanish).

For those purposes, a maximum term of five (5) business days is granted to the concessionaire to comply with the blocking or unblocking order. When exceeding such term, the CFF added an Article 90-A, which establishes fines, from $500,000.00 (Five hundred thousand Mexican pesos, 00/100) to $1,000,000.00 (One million Mexican pesos, 00/100). The corresponding fine will be applicable for each calendar month that passes without complying with the ordered actions.

2. Withholding for digital personal services. For goods or services provided by Internet, through technological platforms, apps or similar, several modifications to the LISR and LIVA were made, to establish the way to withhold and the corresponding rates.

Based on Article 113-A of the LISR regarding natural personas who pay taxes under the chapter of business activities and sell goods or provide services by Internet, through technological platforms, apps or similar, related to intermediation between offering third parties of such goods and services and its clients/consumers, the withholding rates were modified.

The withhold must be done over the gross income effectively perceived by the natural persons, by the previously mentioned ways, considering that such withholdings will have the nature of provisional payments of the tax:

a) For the provision of terrestrial passenger transport or deliver of goods services, a 2.1% rate will be applicable.

b) For the provision of accommodation services, a 4% rate will be applicable.

c) For the disposal of goods and provision of services in general, a 1% rate will be applicable.

Also, a relevant modification was made to the LIVA, eliminating a paragraph that did not considered real estate disposal services as digital intermediation services. In that sense, such services will now be levied according to the LIVA.

V. Modifications to non-profit entities

Among the main modifications by the Decree, cooperative integration and representation organisms (as established in the General Law of Cooperative Entities) such as Federations and Confederations, were included in Title III del Régimen de las Personas Morales con Fines no Lucrativos of the LISR.

Likewise, there is a modification foreseen, that will be valid until July 1st, 2021, which states that only the following legal entities will be considered as non-profit entities and, therefore, non-taxpayers, as long as they are incorporated as non-profit organizations and have a valid authorization to be a non-taxpayer.

a) Civil Society or Foundation (“S.C.” or “A.C.” respectively, per its acronym in Spanish) that are focused in technological or scientific research, registered under the National Registry of Technological and Scientifical Institutions.

b) S.C. or A.C. dedicated to the granting of scholarships.

c) S.C. or A.C. that has as exclusive object the performance of wild, aquatically or terrestrial, flora and fauna preservation activities, between the geographical areas established in Attachment 13 of the Resolución Miscelánea Fiscal, as well as those that exclusively promote the control of the water, air and soil contamination, as well as the protection of the environment and, preservation and restauration of the ecological balance, before the population.

d) S.C. or A.C. that exclusively perform the reproduction of protected and endangered species and the conservation of its natural habitat. For those types of entities, it is necessary to have a previous authorization by the Mexican Ministry of the Environment and Natural Resources.

If those entities fail to comply with such conditions before July 1st, 2021, it will be considered that they will tax under the Title II of the LISR, “De las Personas Morales”, which will be considered as taxpayers for ISR purposes. Nevertheless, based on the Second Transitory Article of the dispositions of the LISR of the Decree, it is an obligation for those entities to determine the construed distributable dividends that were generated until December 31st, 2020, according to Title III of the LISR, and its partners and members must accumulate such dividends that was delivered to them in cash and goods.

1. Income of the non-profit non-taxpayer entities not related with their activities. Article 80 of the LISR was modified to establish a limit of 50% to the income that can be received by the non-profit, non-taxpayer entities, not related to their object or authorized activities to receive donations. In case such percentage is exceeded, the consequence will be to lose the authorization to be a non-taxpayer, non-profit entity.

In case the entity lost its non-taxpayer authorization for allegedly violating what it is established in the previous paragraph, the LISR contemplates a twelve (12) month term, after the notification of the revocation of the authorization, to obtain a new one and, in case of failing to obtain it, the corresponding entity will be forced to donate the 100% of its heritage to any other non-taxpayer organization, between the following six (6) following months. It is established that the CFDI issued by the non-taxpayer entity receiving such heritage, will not be deductible for ISR purposes.

The above will also be applicable to those legal entities who voluntarily cancel its authorization.

Finally, it is established that those non-taxpayer entities that did not renewed its authorization to receive donations, for failing to comply with the obligation to provide the general public with the information related to the destiny of its resources, will have one (1) month to comply with such obligation, after the revocation was duly notified. If they comply with that obligation, they will have the faculty to request for a new authorization.

VI. Salary income

According to the Decree, an addition to Article 94 of the LISR was made in order to establish a limit of $75,000,000.00 (Seventy-five million Mexican pesos, 00/100) for income obtained by individuals for the following concepts: (i) fees for services performed mainly to a service provider, as long as those services were not performed in the provider’s premises, (ii) fees received by individuals of legal entities or of individuals with commercial activities to whom they provide independent personal services, and (iii) income received by individuals of legal entities or of individuals with commercial activities, for whose commercial activities performed.

In case the mentioned amount is exceeded in the fiscal year, the regulations of Chapter I “De los Ingresos por Salarios y en General por la Prestación de un Servicio Personal Subordinado”, of Title IV “Individuals” of the LISR will not be applicable, as they must pay their taxes under the corresponding chapter, according to their incomes, starting from the immediately following month to the date when the income exceeded the mentioned amount.

VII. Other relevant regulations

1. Medical services for the purposes of the value added tax. Regarding the text of the Decree, it is established that no value added tax will be charged for the provision of professional medical services, as long as for those services, a valid medical certificate is required, and they are provided by assistance or private charity institutions.

2. Modifications to the general anti-avoidance rule. The mentioned rule, contemplated in Article 5-A of the CFF, was modified to establish that all effect given by the SAT to the legal acts of the taxpayers, in accordance with such rule, must be limited to the determination of the corresponding taxes, fines and legal accessories without prejudice to the liability or criminal investigations that occur by virtue of the conducts and the CFF.

3. Disposal in case of corporate spin-offs. When performing corporate spin-offs, Article 14-B of the CFF is modified to establish that, if as result of such transaction an item or concept arises in the stockholder’s equity of any of the involved companies, not previously registered in the statement of financial position of the general assembly of partners or shareholders who agreed to the spin-off, it will be considered as a sale for tax purposes.

4. New assumptions of joint liability. A new assumption is added to Article 26 of the CFF regarding joint liability, which will apply to Mexican tax resident companies or foreign residents with an EP in Mexico, who perform transactions with related parties resident abroad, over which there is considered to have effective control. In case they fail to comply with their obligations, the liability will be limited to the taxes that the foreign resident caused for the effectively performed operations with the Mexican entity or the EP.

5. Term to request the adoption of a tax ombudsman agreement. In case the taxpayers are willing to set up a tax ombudsman agreement (“Acuerdo Conclusivo”, per its full name in Spanish) before the Mexican Tax Ombudsman (“PRODECON”, per its acronym in Spanish) for acts of the tax authorities, Article 69-C of the CFF establishes that the request for the adoption of the agreement can be filed at any time, from the start of the audits by the SAT and until the twenty (20) business days following the notification of the final official letter, the observations official letter or provisional resolution.

Before the reform, the term of twenty (20) days did not exist, as the taxpayers had the possibility to file the request for the Acuerdo Conclusivo before the issuance of the final resolution that determines tax assessments.

We expect this will be helpful. The complete publication of the Decree can be found in the following link:

We look forward on commenting any doubt regarding the content of this document in the following emails:

Rafael Tena Castro
Luis Kanchi Gómez


The Mexican Federal Judicial Power confirmed both the legality and constitutionality of the public bid process known as “Red Compartida”

Authors: Rafael Tena y Alfonso Pagaza

As a result of a constitutional amendment, published on June 2013, the Ministry of Communications and Transports of the Mexican Government had the obligation to ensure the implementation of a Public Shared Network (“Red Compartida”) that uses the spectrum released by the transition to digital television.

Acedo Santamarina, S.C., was hired to provide its advice on the public bid process that awarded the Public Private Partnership contract to operate this network. The bid process ended with the signature of the Public Private Partnership contract on January 2017.

After more than three years of litigation, on June 28th, 2020, the Second Collegiate Court on Administrative Matters, Specialized in Antitrust, Broadcasting and Telecommunications, with residence in Mexico City and jurisdiction throughout the Republic, confirmed both the legality and constitutionality of the public bid process.

The judges decided unanimously that the Ministry of Communications and Transports of the Mexican Government acted in a legal and constitutional way during the public bid process that awarded the Public Private Partnership contract to operate this network to Altán Redes.

It is worth noting that in the case at hand the First Chamber of the Mexican Supreme Court of Justice denied the constitutional protection (“juicio de amparo”) against Articles 51, 52 y 53 of the Law of Public Private Partnership, as well as Article 84, Section I of its Regulations.


COFECE files constitutional controversy

On June 22, 2020, the Federal Economic Competition Commission (“COFECE” as per initials in Spanish) issued a statement informing that COFECE filed before the Supreme Court of Justice of the Nation (“SCJN” as per initials in Spanish), a constitutional controversy against the Agreement the Policy of Reliability, Security, Continuity and Quality in the National Electric System, issued by the Ministry of Energy, which was published in the Federal Official Gazette on May 15, 2020 (“SENER Agreement“).

The foregoing, for considering that it undermines the fundamental principles of competition and free market access ordered in the Political Constitution of the United Mexican States, affecting its constitutional mandate and braching its sphere of competence.

COFECE considers that the aforementioned policy is contrary to the content of articles 16, 28 and 133 of the Constitution, as well as to the applicable laws on electricity, which together establish a competition regime in the generation and supply of electricity. Likewise, COFECE expressly states:

The instrument published in the DOF seriously affects the economic structure of the electricity sector, as it eliminates any possibility of its operating in conditions of competition and efficiency, as well as under the terms set forth in the current national regulatory framework for this sector. Hence, the contested Policy compromises both the open and non-discriminatory access to transmission and distribution networks (an essential input in this industry), as well as the economic dispatch criterion that governs the operation of the wholesale electricity market; furthermore, it grants advantages in favor of certain participants while reducing the ability of others to compete, forefits efficiency and establishes barriers to entry in electricity generation.”

It remains to wait for the SCJN to rule on the constitutional controversy filed by COFECE. Particularly, regarding the scope of the SENER AGREEMENT, issued by such government agency, apparently in excess of its powers and invading the powers of COFECE itself, to the detriment of consumers.

It should be clarified that, from the legal point of view, a constitutional dispute is a constitutional control mechanism, in the form of a trial, to settle disputes. In this case, between an autonomous constitutional body and the Executive Branch, having effects the resolution issued by the SCJN only between SENER and COFECE.


Required notice to RFC of partners and shareholders

According to Article 27 of the Federal Tax Code (Código Fiscal de la Federación, “FTC”), legal entities with a tax address in Mexico are required to file a notice in the Federal Taxpayer Registry (Registro Federal de Contribuyentes, “RFC”) providing the name and RFC code of the partners or shareholders every time any modification is made in the capital stock of the company.

The foregoing seeks that the Mexican Tax Administration (Servicio de Administración Tributaria, “SAT”) obtains information to know in real time the shareholding structure of legal entities, with the data of their partners or shareholders.  Mainly, if they are registered in the RFC and, subsequently, to know the modifications and additions of those, so that it has updated such information.

In accordance with Miscellaneous Tax Resolution 2.4.19, in force for fiscal year 2020, the notice must be presented within 30 business days of the capital stock being modified and be made through the electronic portal of the SAT, in accordance with procedure 295/CFF.

In accordance with transitory article Forty-Six of the Miscellaneous Tax Resolution, in force for the fiscal year 2020, legal entities that currently have out-of-date information on partners or shareholders in the RFC must file the aforementioned notice on or prior to June 30, 2020, providing current information as of that date.

In accordance to the FTC, failure to file the notice of capital update or to file it late, unless it is filed spontaneously, is sanctioned with a fine.  It could also lead to other negative tax consequences.


Senes publishes the agreement to guarantee the efficiency, quality, reliability, continuity and security of the national electric system

On April 29, 2020, the National Energy Control Center (for its initials in Spanish “CENACE”), issued the Agreement to guarantee the Efficiency, Quality, Reliability, Continuity and Security of the National Electric System (“Agreement”), on the occasion of the recognition of the epidemic of disease due to the SARS-COv2 virus (COVID-19).

As a consequence of the foregoing, the Plenum of the Federal Commission on Economic Competition (for its initials in Spanish “COFECE”), through a session dated May 6, 2020, issued Opinion No. OPN-006-2020, from whose analysis and recommendations were made known through this media.

In follow-up to the foregoing, it was made known the Agreement by which the Policy of Reliability, Safety, Continuity and Quality in the National Electric System, issued by the Ministry of Energy, which was published in the Official Gazette of the Federation on May 15, 2020 (“SENER Agreement”). Of the recitals, the following is highlighted:

“That this policy contemplates in a more orderly manner the penetration of Power Plants with Intermittent Clean Energy, photovoltaic and wind power, anticipating that the Alert and Emergency Operating States will be reduced to a minimum according to international experiences, reducing as far as possible the forced exits associated with generation are particularly dangerous on the ramps of sunrise and sunset, as well as at critical hours of the National Electric System and that expose financial damage to the National Electric System, as well as to End Users. Said strengthening will be carried out through the optimization of the elements that make up the National Electric System as a whole, and

The Third Transitory Article of the SENER Agreement, for its part, establishes:

Third.- In accordance with this policy of Reliability, Safety, Continuity and Quality in the National Electric System, the Energy Regulatory Commission and the National Center for Energy Control, within the scope of their powers and competences, shall carry out the corresponding adjustments to the Market Rules and the “General Administrative Provisions that contain the Criteria of efficiency, Quality, Continuity, security and sustainability in the National Electric System; Network Code, as provided in article 12, section XXXVII of the Electricity Industry Law ”and those that may be necessary in terms of efficiency, quality, reliability, safety and sustainability in the National Electric System.

As long as the adaptations indicated in the previous paragraph for the application of the Reliability, Safety, Continuity and Quality Policy in the National Electric System are not carried out, those in force before the entry into force of this Agreement will apply, as long as it is not oppose the provisions of this Policy, being in charge of the Ministry of Energy to resolve any questions regarding the applicable provision that arises in the event of conflict. “

For its part, Chapter V of General Provisions of the SENER Agreement, in item 2. Scope, point 2.2., establishes the following:

“2.2 The Bases of the Electricity Market and General Administrative Provisions (DACG) and other regulations issued by CRE; the Market Operational Provisions that govern the MEM issued by CENACE; as well as the regulation for the incorporation of the Distributed Generation to the SEN and the other operations carried out by the Carriers or Distributors; that are related to activities derived from this Policy, must comply with the principles, guidelines and provisions of this instrument. ”

Chapter VI of Dimensions of the Policy of Reliability, Safety, Continuity and Quality in the National Electric System, in item 6 of Sufficiency, point 6.2 Primary Regulation, point 6.2.3, indicates:

6.2.3. All the Power Plant units connected and delivering active power to the SEN must operate participating in the Primary Regulation (in free mode). The Power Plant units, participating in the primary Regulation, must adjust their production following the changes in the frequency of the System and in the action times established by CENACE. For those Wind, Photovoltaic and Efficient Cogeneration Power Plants with a date of entry into operation, that have an Interconnection contract without being in operation and with a study of Installations delivered prior to the publication of the Network Code of April 08, 2016 in the DOF, they will apply after 18 months of publication of this Policy. ”

In the same Chapter VI., Item 7 of Dispatch Security, point 7.1.2, the SENER Agreement indicates that CENACE will determine the necessary actions to maintain Dispatch Security in compliance with the objectives of Security, Quality and Continuity of the Policy and the provisions that the CRE issues in the matter, pointing out some of them to that effect.

On the other hand, point 8 of the SENER Agreement, related to New Related Services, establishes new services linked to the operation of the SEN, such as the Coverage of the Variability of Power Plants with Intermittent Clean Energy, photovoltaic and wind power and Load Centers Specials. Likewise, it indicates that CRE will issue the regulation and rates applicable to Related Services.

Point 10 of the SENER Agreement, regarding the Incorporation of Intermittent Clean Energies, states:

“10.1 The integration of Installed Capacity of Power Plants with Intermittent Clean Energy in the SEN will be maintained for all Power Plants that have reached the Interconnection Contract one day before the publication of this Policy in the DOF. If for any Power Plant with Intermittent Clean Energy, wind or photovoltaic, it is canceled if the Interconnection Contract or Generation Permit, CENACE will evaluate the requests so that, depending on the position of entry and advancement in its platform called “SIASIC”, from the Interconnection point of the Request and the capacity of intermittent Clean Generation regional accommodation considering the Reliability of the System, the viability of accepting the Study request and continuing the process of it will be determined.

10.8 Regarding the Market in the Balance of Power, the Power Plants with intermittent Clean Energy sources do not provide a firm amount of Power, therefore, they do not contribute to the Reliability of the Electric System.”

In Chapter VII, Final Provisions of the SENER Agreement, point 13.1, establishes the following:

“13. The interpretation that CENACE and CRE make, within the scope of their powers and competences, must be carried out in accordance with the present Policy of Reliability, Safety, Continuity and Quality in the National Electric System, so that, in the event of conflict due to the Market Rules and this Policy, must be interpreted in accordance with the latter.”


First resolution of amendments to the 2020 miscellaneous tax resolutions

On May 12th, 2020, it was published on the Federal Official Gazette the First Resolution of Amendments to the 2020 Miscellaneous Tax Resolutions

Most of the rules remain unchanged from those released by the Mexican Tax Administration (SAT for its Spanish acronym) on its website. We highlight the following rules:

Individuals annual tax return

As anticipated in previous newsletters, rule 13.2. allows individuals to file their 2019 annual tax return no later than June 30th, 2020.

From taxpayers whom must file their 2019 annual income tax return and must pay any tax, rule 3.17.4 allows to pay them up to a maximum of six biases, monthly and successive, as long as their 2019 annual income tax return is presented no later than June 30th, 2020, and the payment of the first biases is made within that period.

Taxes on services provided from digital platforms

Rule 12.2.6. provides taxpayers obliged to withhold and pay income tax of taxpayers who sell goods or provide services through websites or apps may choose to calculate the income tax withholdings of each taxpayers based on daily periods.

Furthermore, rule 12.2.9. spells the detailed ways of fulfilling with formal obligations regarding taxpayers who provide digital intermediary services between third parties. They will make the payment of value added tax withholdings through the “Value Added Tax payments withholdings tax return for digital platforms”, until the 17th day of the month immediately following the month in which the withholding was made.

Suspend certain due dates

As anticipated un previous newsletters, rule 13.3. suspends certain due dates of procedures and filings before the SAT that cannot be done electronically. We refer the reader to the newsletter published on that matter.

The full text published on the Federal Official Gazette is available online at:


Mexican tax authority proposes amending miscellaneous tax regulations to suspend certain due dates in response to COVID-19

On may 4th, 2020 the Mexican Tax Administration (SAT for its Spanish acronym) released on its website the sixth draft of the First Resolution of Amendments to the 2020 Miscellaneous Tax Resolutions, which would suspend certain due dates both for the SAT and taxpayers from May 4th, 2020 through May 29th, 2020 in response to COVID-19.

The suspension would apply to all procedures and filings before the SAT that cannot be done electronically, including administrative appeal, ongoing tax audits and petitions for permits or authorizations. The suspension would not apply to the following:

I.The filing of tax returns, notices and reports.

II.The payment of taxes, levies and proceeds.

III.Claims for tax refunds.

IV.Administrative-law enforcement actions.

V.Customs procedures.

VI.SAT assistance to taxpayers.

Consequently, taxpayers must still file their monthly tax returns and other informative returns and pay the corresponding taxes. Likewise, the SAT must promptly refund overpayments of taxes, if any.

Internal SAT deadlines would also be suspended, provided the SAT cannot conduct its procedures electronically, such as those related to compliance with anti-money laundering procedures, and the initiation and conclusion of tax audit.

If any procedure subject to suspension is performed during the suspension period, the new rules note that the action will be deemed to be made on the first business day of June 2020 (Monday, June 1st, 2020).

It is to highlight these new rules have not been published in the Official Gazette. The full text released by the SAT is available online at:

A careful analysis must be made to determine whether a certain due date has been suspended or not. From our point of view, a case-by-case analysis is needed.


Extension to file annual income tax return

According to Article 150 of the Mexican Income Tax Law all residents receiving income during the calendar year are required to file an annual tax return no later than April 30th, of the succeeding year.

However, due to the evolving COVID-19 outbreak in Mexico many business associations, professionals and the international community requested to the Federal Government tax measures in order to mitigate the financial impact of the pandemic.

Therefore, on April 22nd, 2020, the Mexican tax authority (“Servicio de Administración Tributaria”) published on its internet site the fourth advance version of the First Resolution on Amendments to the Fiscal Miscellaneous Resolution, in which rule 13.2. was incorporated, allowing individuals to file their 2019 annual tax return no later than June 30th, 2020.

This measure aims to facilitate tax collection and encourage taxpayers to complete via online these proceedings.  At the moment of the elaboration of this report, the rule at hand has not been published on the Federal Official Gazette.

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