Issue 150 - November-December 2020

November 2, 2020

Considerations in Mexico Relating to Taxpayers Conducting Presumptively Non-Existent Transactions

By Esteban Gómez Aguado

Article 69-B of the Mexican Federal Tax Code sets forth a procedure to be followed by taxpayers who contract with suppliers of goods or services who, pursuant to public information published in the Official Journal of the Federation and on the Tax Administration Service website on a quarterly basis, are listed as companies that invoice simulated (non-existent) transactions (“EFOS” by its initials in Spanish). Compliance with the aforementioned procedure is important because if the veracity of a transaction is questioned and cannot be proven to have actually occurred, then the taxpayer’s tax receipts from the EFOS are considered null with no tax effect, meaning that the expenses may neither be deducted for income tax purposes nor creditable for value added … read more

November 17, 2020

Mexico Now Requires Disclosure of Aggressive Tax Planning Transactions

By Miriam Name and Esteban Gómez Aguado

The Mexican omnibus tax bill for 2020 was published in the Official Journal of the Federation on December 9, 2019. Among other changes, a new Section, “Regarding the Disclosure of Reportable Transactions,” was added to the Mexican Federal Tax Code (“CFF” for its acronym in Spanish), which sets forth a mandatory disclosure or reporting requirement for certain transactions including or involving tax planning structures (“Reportable Transaction”). Depending on the date of implementation of the tax planning transaction and other factors, the tax planning transactions must be disclosed or reported by either the tax advisor involved or the corresponding taxpayer. The primary objective of the new reporting requirement is to prevent transactions that involve aggressive tax planning. As a practical matter, … read more

Notice of Change in Owners or Shareholders of Companies Domiciled in Mexico to be Filed with Mexico’s Federal Taxpayers’ Registry (RFC)
By José Soto

Section VI of Part B of Article 27 of Mexico’s Federal Tax Code (Código Fiscal de la Federación) was recently amended to require entity taxpayers to file notice with the RFC stating the name and RFC number of their owners or shareholders each time the composition of the owners or shareholders of such entity is modified or changed. Rule 2.4.19 of the Miscellaneous Tax Resolutions for 2019/20 (RMF) stipulates that the notice must be filed using transmittal form 295/CFF and occur within 30 business days following the effective date of the change of the composition of owners or shareholders. Apart from the above notice, Transitory Article Forty-Sixth of the RMF establishes that entities and other business associations that have not … read more

Mexico’s Solar Industry Outlook: Notes Regarding the “Solar Asset Management Mexico” Conference
By Antonio Riojas y Elena Hernández

The third edition of “Solar Asset Management Mexico”, one of Mexico’s most important conferences on solar energy, was held during the month of October 2020. Due to the current pandemic, the conference was held virtually via a high-quality digital platform that brought together representatives from the entire Mexican electricity sector. Over the course of four days, more than 200 participants attended the presentations of more than 30 panelists, they had the opportunity to interact with each other, and they received a complete picture of Mexico’s current solar industry. The energy sector has not been impervious to the challenges posed by the pandemic.  A number of actions taken by Mexico’s current federal administration have also created an environment that has slowed … read more