Bridging Legal Borders

A Law Firm for North America

NAFTA Expertise Since 1994

CCN guides international clients doing business in Mexico and Texas

Cacheaux, Cavazos & Newton (“CCN”) is an international law firm based in San Antonio, with additional offices in Austin and McAllen, Texas, and throughout Mexico in Mexico City, Monterrey, Guadalajara, Tijuana, Queretaro, Ciudad Juarez, Reynosa and Matamoros. CCN’s attorneys are bicultural, bilingual and are licensed to practice in the U.S. and Mexico.  The firm helps international clients navigate a broad range of legal issues in the increasingly integrated North American market. CCN’s clients include large global companies, as well as small and medium-size businesses, which the firm advises in a wide array of practice areas in both the United States and Mexico.

Mexico Issues New Requirements for Reporting Increases in Capital

For Mexican entities approving capital stock increases or decreases occurring December 31, 2020 or before, Article 30 of the Mexican Federal Tax Code provided that taxpayers were required to maintain records of all minutes and certificates relating to such transactions. However, beginning January 1, 2021, Mexican tax authorities now may require additional information from Mexican entities evidencing the economic substance of the increases or decreases in their capital stock. Accordingly, taxpayers who increase their capital stock through the capitalization of liabilities must,  in addition to keeping accounting records, meeting minutes, account statements and, where appropriate, appraisals of the goods contributed, maintain a document certifying both the accounting existence of the liability in question and its value. Such certification must comply … read more