by gphadmin | Nov 20, 2020 | Sin categoría
It is important to highlight some of the approved tax reforms, since the majority of which will become effective as of January 1, 2021:
Federal Revenue Law (LIF)
- Fiscal incentives for 2021:
- The individual or legal entity that disposes of books, newspapers and magazines may apply an additional deduction of 8% of the cost they acquire, as long as the total income in the immediately preceding fiscal year is less than 6 million Mexican pesos; the incentive is not cumulative for the ISR.
- Starting 2021, tax incentives will be cumulative for ISR purposes at the time they are credited.
- In cases of extension for the payment of tax credits, the same will apply as in the year 2020.
- The income tax withholding rate of 0.97% for the financial system will apply in 2021; the rate in 2020 is 1.45%
Income Tax Law (LISR)
- Legal entities and where appropriate, trusts, may lose their authorization as donataria autorizada when more than 50% of their income is different from the purposes for which they were authorized. Some causes of the revocation of the authorization to receive deductible donations are:
- When the income is used for purposes other than the corporate purpose with which the authorization was obtained.
- Do not issue tax receipts or in cases those receipts indorse different operations.
- When a member of the board of directors or administration has been part –within a period of 5 years– of an organization whose authorization was revoked due to non-existent operations.
- In case of revocation of the authorization or when its validity is concluded and it is not obtained again or it is renewed within the following 12 months, all of its assets must be allocated to other authorized entities.
- No later than July 1, 2021, only companies that obtain authorization to receive deductible donations may remain in the non-profit legal entity regime.
- The option for the donatarias autorizadas of the certificate of compliance with fiscal obligations, transparency and social impact assessment was eliminated.
- Individuals who obtain income greater than 75 million mexican pesos from fees, independent personal services and/or business activities will not be able to pay taxes under the concept of income assimilated to salaries.
- The retention rates applicable to income generated through digital platforms will be:
- Passenger transportation services and goods delivery: 2.1%
- Disposal of goods and provision of services 1%.
Value Added Tax Law (LIVA)
- Professional medical services that require a professional title provided by individuals or through civil partnerships, will not be subject to the payment of tax.
- Residents abroad without an establishment in Mexico who operate as intermediaries in activities carried out by third parties may include the tax in the price as long as it has the legend “IVA incluido”.
- Residents abroad without permanent establishment in the Mexico who provide digital services and omit their registration in the SAT, the appointment of a representative in national territory, obtaining their electronic signature, the obligation to pay the tax, withhold the corresponding income tax, present informative or payment declarations; can be subject to temporary blocking of access to internet service by concessionaires of a public telecommunications networks.
Fiscal Code of the Federation (CFF)
- All visit records will be valid even though the visitor does not sign them.
- In the event of a tax opinion, the public accountant must appear personally with his work papers before the authority for the pertinent clarifications.
- The tax mailbox will be governed according to the schedule of the Central Zone of Mexico’s City.
- Intangible assets may not be offered as a guarantee of tax interest.
- Failure to return, transfer or change the customs regime of temporarily imported merchandise will be equated with the crime of smuggling.
- In the division of companies, it will be considered alienation that there are new items in the stockholders’ equity of the spin-off company whose amount was not recognized in the stockholders’ equity accounts of the statement of financial position presented and approved at the general meeting of partners or shareholders that agree to the split. The spun off companies will be jointly liable without limitation.
- The term for taxpayers to request the adoption of conclusive resolutions is extended by 20 days after the final act has been drawn up.
- It will be grounds to have a request for the return of balances in favor not submitted in cases where the address indicated by the taxpayer is considered not located. The authority, in the event that there are several refund requests from the same taxpayer for the same type of contribution, may choose to issue a single resolution. Additionally, at the end of the exercise of the powers of verification, the authority must issue its resolution within a period of 20 business days.
- The authority may suspend or reduce the obligations of taxpayers when it is determined that they have not carried out any activity in the last 3 years.
- People who make partial or deferred payments that settle balances of Digital Tax Vouchers over the Internet (CFDI), export merchandise that are not subject to sale or whose sale is free of charge, must also request the respective CFDI.
- The information resulting from the controversy procedures provided for in the treaties must be kept to avoid double taxation for as long as the companies subsist.
Federal Law of Rights
- In addition to the holders of mining concessions, all those who have rights related to said mining concessions who obtain income consequential from the sale of the extraction activity will pay the special mining right annually.
- The concessionaires of frequency bands of the radioelectric spectrum will pay annually the right for the use, enjoyment, exploitation or exploration depending on their frequency range and in terms of the fees established by law.
The recommendations to face these changes and modifications can be among others:
- Review the terms of the provisions for full compliance with your tax obligations.
- Verify that you are not within the assumptions regarding undue transmission of losses or that you are not carrying out operations with suppliers who are identify as taxpayers who carry out non-existent operations.
- Rectify that all the necessary documentation is available to protect capital increases and decreases, payments, mergers, spin-offs, etc.
- Analyze the income obtained in the case of associations or societies that have authorization as donataria autorizada.
- Review the agreements related to mining royalties to determine if the payment of the mining right is applicable or not.
Maria Fernanda Ortega
Gloria Ponce de León & Hernández
by gphadmin | Nov 12, 2020 | Sin categoría
The General Law on Commercial Entities (Ley General de Sociedades Mercantiles, “LGSM”) establishes obligations to be complied by each and every company incorporated according to the aforementioned Law. One of these obligations is to keep certain corporate books.
What are the corporate books? Which is the main purpose of corporate books? What kind of corporate books does exist?
The main purpose of corporate books is to record different corporate acts. In the corporate books may be found the whole history of the company since its incorporation.
The corporate books that a company must have updated are the following:
- Shares Ledger: Article 128 of the LGSM establishes that the company must keep a register identifying, among others, the name, nationality, domicile, number of shares of the shareholders of the company.
- Minutes of Shareholders’ Meetings Ledger: Article 194 of the LGSM establishes that the company must keep a book containing the minutes of the General Assemblies of Shareholders. This book must include the Annual Shareholders’ Meeting; said meeting is an obligation that mercantile companies have in the first four months of the year following the end of the fiscal year. The financial statements of the company must be approved in this meeting. Additionally, each and every other held meeting must be included in this book.
- Capital Variations Ledger: Article 219 of the LGSM establishes that if the company makes increases or decreases in its share capital, it must be registered in the registry book.
- Meetings of the Board of Directors Ledger: The law in force does not establish any specific obligation to keep a book where the board’s sessions are recorded. However, this book is considered necessary for the best corporate practices.
In addition, articles 34, 36, 37, and 41 of the Commercial Code (Código de Comercio, “CC”) establish the requirements for keeping such books. And in article 46 of the Code establishes the obligation to keep books, records, and documents for a minimum period of 10 years.
From the aforementioned, it is important to keep in mind that the General Law of Commercial Entities, the Commercial Code, and tax legislation impose the obligation to keep the company’s corporate books, records, and documents for a minimum period of 10 years. In case of not complying with this obligation, the company may be fined for violating these legal provisions. Consequently, we suggested keeping up to date the above–mentioned corporate books and records for a minimum of 10 years to avoid fines and to be a compliant and transparent company.
Tamara Martínez
Gloria Ponce de León & Hernández
by gphadmin | Nov 9, 2020 | Sin categoría
With 258 votes in favor and 103 against, Deputies approved the income tax law and 2021 miscellaneous tax resolution, likewise and as a result of the income opinion, the relevant modifications were made primarily to the Income Tax Law (LISR by its acronym in Spanish), to the Value Added Tax Law, which are mentioned below:
The main changes within the Income Tax Law are the following:
- Section II of the second transitory article of the LISR is added to indicate that the condition to continue in Title III, that is, of the Regime of Legal Entities with Non-Profit Purposes of certain organizations will come into force as of July 1st., 2021.
- The ISR retention rates for incomes derived from digital platforms are modified, to be as follows (one-time rates): passengers ground services and goods delivery services decreased from 2.8 to 2.1%, hosting services from 5 to 4% and with respect to the sale of goods and provision of services from 2.4 to 1%.
The main change within the Value Added Tax Law is the following: trading companies that serve as intermediaries such as “Mercado Libre” and “Segunda Mano” must pay VAT.
In relation to the 2021 Miscellaneous Tax Resolution, it was approved regarding:
- The cancellation of digital stamps: the deadlines for submitting clarifications are modified, therefore taxpayer must submit said clarifications within 10 days, the foregoing due to the requirement of the SAT to notify taxpayer in case of any irregularity detected. After the 10-day period, the SAT may execute the cancellation of the seal.
- Confirmation of tax address: The taxpayer must confirm their tax address before the SAT to receive a refund of the balance in favor.
By last, some of the modifications mentioned in this document have been considered due to the economic impact that our country faces as a result of the pandemic generated by SARS-CoV2.
Giselle Villanueva Chagoya
Gloria Ponce de León & Hernández
by gphadmin | Nov 2, 2020 | Sin categoría
The business control, as many others dapartments in the organization, Works in an independent way and helps primarly to confirm that all internal processes are being conducted in accordance with the previously established. This is also de in charge of inform and point out the wrong ejecuted tasks and planning in order to correct every one of the internal processes of the company.
There are so many reasons to implement this, however, the one I would make special emphasis in this case would be i. identify and to correct mistakes, ii. Identify and adapt to changes, iii. Break up any threats and iv. Take new opportunities as they araise.
In every one of the previous reasons, the common denominator is that all of them are planning and movements that are made no matter the business activity of the company, because they do not depend in the operation of the company, but from the administration potentiates every one of the areas involved to get better and more efficient results in the different departments of the company.
The business control has, among many others responsabilities, the enough importance to generate an extra value to the producto and/or services provided, mainly if this helps to interfer quickly and effective every one of the internal stages in wich relies the producto before the go out to the consumer.
In addition to the above, the business control has to be very timely because none of the mistakes or opportunities detected if they are not corrected quickly in every detail, ori f they are not detected at all and keeps the same basis. Here relly the importance of keeping immediate controls, where the team in charge for this functions are in posibility and well prepared with the tasks they are supposed to interfer. The above is going to help the business to take care of the end goal, if you see the business control as an Conduit and not as a end goal in order to be faster, more efficient and to have more quility in your final products/services that reach the consumer.
At the end, as a final step in the business control of a company is the correction of every process found that is being wrongly executed, this reffers to a non existed situation in where can be detected a warkness/mistake in time and there were no solutions, every task and efforts would not bring any extra value without a corrective measure inmediatly. This would also helps to prevent mistakes in future processes.
Al lof the above mentioned in this article were the basic measures, but enough, to deal with a business control of a company, starting from the main reasons for wich it is important to implement until the final step or clousure with the modification of every weak point detected.
Antonio Quiroga Trápala
Gloria Ponce de León & Hernández
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