CCN Mexico Report Articles

November 24, 2021

Mexico Creates Voluntary Labor Verification Program

By Francisco Peña

On November 1, 2021, Mexico’s Secretary of Labor and Social Welfare (“STPS” for its acronym in Spanish) published a Decree in the Official Journal of the Federation (“DOF”) creating a new Voluntary Labor Verification Program (the “Program”), which entered into force the day following its publication. The decree provides that employers may voluntarily report to the STPS their level of compliance with  General Labor Conditions, Development and Training, Safety and Sanitation, among other aspects, as relates to their respective workplaces. In relation to the Program, the General Rules of Workplace Inspections and Implementation of Sanctions in force, in article 2, section VI, 46 and 47, provides for Alternate Mechanisms to Inspections (“AMI”) to be conducted by duly certified entities. The … read more

November 5, 2021

Economic Indicators

On November 4, 2021, updated financial indicators reflected: Peso/Dollar Exchange Rate: $20.6242 pesos per Dollar. Mexican Stock Exchange: The Mexican Stock Exchange (BMV) closed 51,873.46 points. Interest Rates: The Average Interbank Rate (TIIE) for a 28-day period was at 4.9754%.

November 5, 2021
The Role of Mexico’s Supreme Court of Justice in Mexican Politics

Political Thermometer

It is commonly thought, as supported by the rules on the separation of powers, that the Mexican Judiciary has the exclusive responsibility to apply the law and resolve legal disputes. Such position holds that the Judiciary’s duties must be distanced from politics to prevent conflicts between and among the three branches of government. Notwithstanding these precepts, the consolidation of Mexico’s Supreme Court of Justice as a constitutional court has put the Supreme Court in the national spotlight as an arbiter on important political matters. The Supreme Court has the authority to resolve conflicts not only as to the constitutionality of general laws, but also the power to review matters arising from the actions of federal, state and municipal authorities, including … read more

November 5, 2021
New U.S. Ambassador Arrives in Mexico

300 Palabras

By Mario Melgar Adalid

A new United States ambassador has arrived in Mexico, Kenneth Lee Salazar. He was appointed by President Joe Biden and is known for being well informed as to the issues that exist between the U.S. and Mexico, including opportunities that exist for the two countries to move forward with mutually beneficial projects that would strengthen their bilateral bond and create further possibilities for development. Upon his arrival in Mexico, Ambassador Salazar began working in a promising way, handling matters directly and in person. He has already begun taking tours throughout Mexico, among which his tour through the state of Oaxaca stands out. On that tour, the Ambassador learned about the progress made on the Interoceanic Corridor of the Isthmus Tehuantepec. … read more

November 5, 2021

The Evidentiary Value of Electronic Signatures and E-Mails Used in Trial

By Eduardo Parroquín

In 2012, Mexico City’s Fourth Civil Court of Appeals issued the following Decision entitled “DOCUMENTS AND ELECTRONIC MAIL. THEIR EVIDENTIARY WEIGHT IN COMMERCIAL LAW.” This holding set forth the level of security and reliability given under Mexican law to electronic signatures and emails offered as evidence at trial, therefore establishing the probative value of each. Such holding provides that an advance electronic signature shall prevail over a simple electronic or digital signature because the requirements of an advance electronic signature make it more reliable than the latter. An e-mail containing an advance electronic signature which is offered as evidence at trial will have the same probative value as a physically signed document. On the contrary, if the document was not … read more

November 1, 2021

Mexico City Approves the Use of Electronic Media for Civil Matters

By Jorge Sánchez Cubillo

As a consequence of social distancing triggered by the COVID-19 pandemic, several articles of the Civil Code and of the Notarial Law of Mexico City were amended by means of a decree published in the Official Gazette of Mexico City on August 4, 2021, for purposes of implementing the use of electronic media primarily with respect to the following legal acts: Bequests of digital goods or rights. A last will and testament may include a bequest of digital goods or rights with respect to any electronic media, for example: domains and websites, applications, electronic information files, videos and images, usernames and passwords for bank accounts, or values used or owned by the testator. Additionally, a testator may designate a special … read more

October 19, 2021
Legal Planning and Choice of Entity for the Non-U.S. Investor

Forming a Company in the United States

By Carrie Osman

Determining the appropriate corporate structure for a U.S. entity with international owners involves factors such as limiting liability, tax considerations and often specific requirements for U.S. immigration and visa needs. A planning phase is advisable for foreign parties, which planning involves the participation of U.S. corporate counsel, accountants and fiscals advisors from both the U.S. and their home country, as well as their U.S. immigration counsel, if applicable. Decisions on choice of entity, ownership structure and place of formation can significantly impact international tax consequences and the company’s future. Below is an overview of some of the main considerations in forming a U.S. entity.    1. Choice of Jurisdiction.  In the U.S., company formations are governed by state law, and … read more

October 12, 2021

New Requirements for Providers of Registered Specialized Services or Registered Specialized Work

By Pablo Saénz and Fernanda Magallanes

In accordance with the recent amendment to Mexico’s Federal Labor Law in regard to outsourcing, entities or individuals who obtain a Specialized Service Provider or Specialized Work Registration (“REPSE” for its acronym in Spanish) must refrain from performing any work related to the principal business activity of the beneficiary of such services or work. They must also comply with the obligations established in Mexico’s Federal Labor Law, Social Security Law, National Institute for Employees Housing Fund Law, Income Tax Law (ISR), Value Added Tax Law (IVA), and any other applicable law, as well as any general REPSE rules set forth in article 15 of the Federal Labor Law. The primary obligations of providers of specialized services or work include: i) … read more

September 23, 2021

Mexican Tax Authorities Issue “Invitation Letters” to Taxpayers Regarding Alleged Discrepancies in Reporting Expense Deductions

By Rene Cacheaux, Miriam Name, and Esteban Gómez Aguado

Mexican tax authorities are sending notices to taxpayers inviting them to review and, if necessary, correct their tax filings (“Invitation Letters”). The Invitation Letters identify alleged discrepancies between amounts taxpayers claimed as authorized deductions and the expense and invoicing information they provided to support such deductions. It is important to review the Invitation Letter carefully because Mexico’s tax regulations provide for several legitimate deductions that do not necessarily tie into an Internet Digital Tax Invoice (“CFDI” for its acronym in Spanish). For example, investment deductions, annual adjustments for inflation, and exchange losses, among others, fall into this category. Legitimate discrepancies may also exist when a CFDI has been issued, but the deduction is filed for a different time period, such … read more

September 21, 2021

México and the U.S. Relaunch High-Level Economic Dialogue

By Iván Castañeda

On September 9, high level representatives from Mexico and the United States, including Vice President Kamala Harris, several Department Heads and Ambassadors, relaunched High-Level Economic Dialogue (“HLED”), a dialogue mechanism implemented in 2013 during the administrations of Presidents Enrique Peña Nieto and Barack Obama. Attendees of the HLED discussed several important topics for both nations, including labor, immigration, automotive, energy and compliance with the USMCA. The relaunched HLED will focus on four central pillars: Joint reconstruction. The purpose of this pillar is to strengthen existing and new supply chains and facilitate trade and infrastructure development in order to mitigate supply chain disruptions. Promoting sustainable economic and social development in southern Mexico and Central America. Both nations will identify opportunities to … read more