Recently, the second chamber of the Mexican Supreme Court of Justice, interpreting the 2019 and 2020 Tax Laws, published a jurisprudence about the compensation of Value Added Tax (“VAT”). The Court determined that the civil figure of compensation is NOT applicable for tax purposes, as a payment method, and therefore, it is not a payment method for terminating tax obligations. Consequently, the taxpayers may not request a refund of their tax credit balance nor the credit of such tax resulting from a compensation. In addition, it was clarified that it is a question of compliance with obligations, since the final consumer (subject to the payment of the tax) demonstrates having paid it and thus accredited the tax to the taxpayer who bears the final obligation to pay it to the tax authority.
Amendments to the new provisions for the registration and oversight compliance with obligations of individuals and companies that provide specialized services or perform specialized work.
Among the annual obligations of the retail, industrial or services establishments, the renewal of the municipal operating permit and advertisement permit is required, as applicable.
On December 27th, 2022, the Mexican Tax Authority published the Tax Regulations for 2023, including a relevant amendment applicable to the controlling beneficiary (rules 2.8.1.20 and 2.8.1.22 specifically), whereby the authority clarifies the Criteria for identifying the controlling beneficiary of legal entities.
Based on provision of the National Registry of Foreign Investments (“RNIE”) entities with foreign investment shall bear the following annual obligations
On December 14th, 2022, the Mexican Senate approved the decree that amends articles 76 and 78 of the Federal Labor Law with the purpose of increasing the vacation periods of all employees in Mexico and was sent to the Federal Government for publication in the Federal Official Gazette.
On November 14th. the government amended and included new provisions to the Federal Law
on Administrative Fees related to administrative applications before the National Immigration
Institute (INM, by its acronym in Spanish).
Seeking greater transparency regarding base erosion and the transfer of tax benefits, the
Organization for Economic Cooperation and Development ("OECD") issued different
recommendations regarding aggressive tax planning
The Multiple Immigration Form (FMM, for its acronym in Spanish) is the migratory document
issued by the National Migration Institute (INM, for its acronym in Spanish), which allows
foreigners to prove their regular migratory status in the country.
On October 10 th , 2022, the Ministry of Health, with the work of the New Normal Committee
and IMSS, issued a "Joint Release" in which they inform the basic preventive measures in the
current context of the pandemic caused by the SARS-CoV-2 virus.
The importance of regulating working conditions, when teleworking is chosen, lies in the difficulty that implies guaranteeing such conditions in a place that is different to the company's workplace. This modality presents advantages for employers and employees, but also entails the fulfillment of labor obligations for both of them.
As of this year, Mexican companies with foreign partners or shareholders without a permanent
establishment in Mexican territory involved in the sale of their shares or equity interests must
file a notice before the Tax Authority ("SAT"). Such obligation is the result of the amendment
to Article 76 of the Income Tax Law (“LISR”) and Rule 3.9.18 of the General Tax Rules
(“RMF”).
