"New Decree to facilitate tax compliance in México...[sic]".
Digital Invoices.
Control over deposits
July 21, 2010
©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
Decree Published on June 30
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©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
Decree Simplifying Tax Compliance
• Due to complexity of tax compliance
• SAT’s analysis identified that taxpayer devote more time to the tax compliance
than other countries.
• There are recommendations from the World Bank to simplify the tax burden.
• A Decree to Simplify Tax Compliance issued by Presidente Calderón was
published last June 30
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©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
Decree Simplifying Tax Compliance
1. Opting not to submit a monthly list of the Flat Tax (revenues, deductions and
credits)
Business Flat Tax (IETU) taxpayers may choose not to submit the information on
the concepts that formed the basis for determining the tax (due along with the
monthly payment) provided that the report is filed annually within the month
immediately following the end of the fiscal year - January.
The SAT will release the formats in which such information must be submitted.
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©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
Decree Simplifying Tax Compliance
2. Option not to file VAT information on income tax return
Value-added tax (VAT) taxpayers and those who carry out activities taxed at 0%
rate may choose not to submit VAT information statements as requested by the
income tax return (Article 32, Section VII of the VAT Law), provided that they
comply with the obligation to submit monthly operational information with suppliers
(DIOT).
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©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
Decree Simplifying Tax Compliance
3. No obligation to have a tax report (dictamen fiscal) to request the return of the
Cash Deposit Tax
Taxpayers seeking a refund of Cash Deposit Tax, in accordance with the
provisions of Article 8, fourth paragraph of the Cash Deposit Tax Law, need not to
submit the tax report, provided that they present the information on time and
according with additional rules that will be published by the SAT.
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©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
Decree Simplifying Tax Compliance
4. The validity of the certificates of individuals electronic signature (FIEL) is now
extended from two to four years
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©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
Decree Simplifying Tax Compliance
5. Option not to deliver the tax opinion for the year 2010 and beyond
Taxpayers which in accordance with Article 32-A, Section I of the Federal Tax
Code (CFF), are required to audit their financial statements through certified public
accountant, as well as those required for purposes of the Social Security (IMSS) may choose not to present the audit report for the year 2010 and subsequent
years, provided that they present the information on time and according with
general rules to be published.
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©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
Digital Invoices
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©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
Digital Invoices
2009 changes to the Mexican Tax Code included a new procedure to issue
invoices for alienation of goods or rendering of services.
The new procedure require to issue all invoices in a digital format as from
January 1, 2011. Lack of attention to this requirement may disrupt the ongoing of
operations.
Up to date, taxpayers have the obligation to pre-print in authorized printing
shops their invoices or they may obtain authorization from the Mexican tax
authorities (SAT) to print their own invoices.
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©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
What the Company needs?
Due to the changes to the Tax Code, taxpayers must, as soon as possible and
before January 1 (preferably before October 2010):
1. Confirm that an electronic signature (FIEL) with the tax authorities is in force.
Otherwise to update the signature.
2. Download from the SAT’s web page the Digital Seal Certification
3. Hire an authorized supplier to obtain a program with the design and
procedure to issue the invoices.
4. Alternatively, taxpayers may download the above mentioned program from
the SAT’s web page provided that the taxpayer has the necessary equipment
and capacity to warranty compliance with the authority’s requirements.
5. Authorized folios will be in force for two years.
6. Necessary controls must be in place to allow storage for further verification of
invoices issued.
7. File quarterly reports with the digital invoices issued.
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©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
Continues,,
Taxpayers may use the already pre-printed invoices until extinguished or upon its
expiration date even after January 1, 2011.
It worth mentioning that changes to the Tax Code includes the obligation of
taxpayers to verify the validity of digital invoices obtained from suppliers of goods
and services. Lack of this verification procedure (which is done in the SAT’s web
page) is penalized as tax fraud and of course the deduction is denied.
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©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
Invoicing Process
Digital Mechanism
Company
Make the
Invoice
SAT or
authorized
supplier
•Check the tax
requirements
•Folio assigned
•Incorporate
Digital Seal
Company
Client
Digital
Invoice
Data
Future
Base
onIndustry
the web
Scenarios
page
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©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
Dollar Transactions
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©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
Limit to deposits within the bank system in foreign currency
A resolution amending general provisions referred to Article 115 of the Law on
Credit Institutions was published. Now individuals or business with a bank account
can deposit in cash up to US$4,000 a month (US$7,000 in the northern border) if
they do not have a bank account the limit is US$300 per day and accumulated
$1,500 per month.
Foreigners with no bank account can change Dollars into Pesos in cash up to
US$1,500 per month.
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©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
Foreign currency deposits
Bank institutions must submit within the first 10 days of January, April, July and
October of each year to Hacienda, a report for each purchase transaction, deposittaking, receiving payment of credit or services, or transfers or state funds, in cash
to be made in dollars.
The resolution also emphasizes that each institution must retain for a period of not
less than 10 years from the date of its execution, a copy of the relevant transaction
reports, cash in dollars, unusual, troubling internal and international funds
transfers
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©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
Foreign currency deposits
Another rule provides that when a user performs some operation on foreign
currency cash or traveler's checks, equal or more than $500 or its equivalent in
foreign currency in question, the institution must request certain information and
preserve it.
The resolution came into force on Monday, June 21, however, in regard to their
operations of financial institutions with corporations will be effective in 90 calendar
days from June 16, 2010.
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©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
Héctor Silva
hsilva@deloittemx.com
011 52 (664) 6227840
©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.