Mexican tax reform e-filing requirements put on hold
Regional courts to examine newly established Mexican tax reform e-filing requirements.
In the past two years, Mexico has seen sweeping reforms in a number of key economic and social realms, and accompanying legislative changes. These reforms included amendments to Mexico’s tax law. Among the new measures introduced and passed by the the Congress were laws that have resulted in new Mexican tax reform e-filing requirements. Taxpayers and businesses (including manufacturers) in Mexico are now required to keep electronic records, and file monthly trial balances and a chart of accounts information with Mexico’s Tax Administration. Initially, Mexican entities were required to begin adhering to Mexican tax reform e-filing requirements with July 2014 records, while individuals were begin with their information starting in January 2015. All reports will eventually be submitted through the “taxpayer mailbox system,” unless the person, or small business, has no internet access or the files are too large for transmission. In such cases the reports may be filed directly in the tax administration’s offices.
As the result of the submissions of what are known in Mexico as “amparos,” the implementation of Mexican tax reform e-filing requirements has been suspended until various regional courts rule on the validity and legality of the new measures. This action was ordered by Mexico’s Supreme Court on Wednesday, November 26, 20014. Until the cases are resolved, taxpayers are not obliged to act in accord with the new rules regarding Mexican tax reform e-filing. If and when the courts do decide that the new rules are both legal and valid, and implementation moves forward, below are the main points related to with compliance:
What to File
The published Mexican tax reform e-filing regulations and guidelines detail the items that submittted records and accounting books must contain, including:
- The list of accounts and all related vouchers or proofs of payment
- All notices filed with the tax administration concerning the taxpayers’ taxpayer
- identification including tax residency modifications, enrollment of branches, tax obligation modifications, etc.
- Any and all tax returns
- Any and all bank statements/reconciliations
- All shares and equity interests the taxpayer is a party to
- Any and all documentation that is before the tax administration and social security
- related to the hiring of employees and employment status
- Documentation related to imports and exports of goods
- Any and all records of transactions, events, or activities to be registered in accordance with the internal control system
Standards for Presentation/Appearance
The published regulations even go so far as to detail how such records and filings should appear and be organized, some of which include that records should:
- Be made within five days of completion of the transaction, event, or activity
- Include within the journal a description of all operations, actions, or activities in the chronological order in which they were made showing the opening balance, transactions for the period, and the closing balance
- Identify each transaction and assign a number to the electronic invoice or corresponding support documentation for identification of transactions
- Identify fixed assets and capitalized amounts with electronic invoices or corresponding support documentation and ensure identification of acquisition date, asset description, purchase price, depreciation rate, and start date for depreciation
- Include any and all financial statements
- Use the Spanish language and designated all amounts in Mexican pesos
- Use cost centers and identify the transactions, acts, or activities of each branch or establishment, both domestic and abroad
- Include the completion date, description, quantity, method of payment, and if the payment was made in installments for each transaction
- Identify deposits and withdrawals from bank accounts opened for reconciliation of bank statements.
Those with interest issues surrounding the examination of Mexican tax reform e-filing requirements and their delay, should visit the Tecma Group of companies blog. Information concerning the courts’ rulings will be published, as it is made available.