On April 24 of this year, the Miscellaneous Tax Resolution for 2019 was published in the Official Gazette of the Federation (DOF). This resolution contains rules related to the transfer pricing regime. Below is a summary prepared by our firm of the rules that have a direct or indirect relationship with the regime, organized by topic for easier understanding. We remain at your service for any clarification in this regard.
Rules Related to Documentation of Transactions with Related Parties
2.8.5.5. Option not to submit the annex of the financial statement opinion or the section on tax situation information related to transactions with related parties [by submitting Annex 9 of the multiple informative return].
2.19.5. Corporate taxpayers residing in Mexico with transactions conducted with foreign residents (the obligation established in section V of Article 32-H of the Federal Tax Code regarding their tax situation is considered fulfilled when related party transactions and information are submitted).
3.9.3. Deadline for submitting information on related parties residing abroad for taxpayers who opt for or are required to audit their financial statements.
3.9.4. Deadline for submitting information on related parties residing abroad for taxpayers who do not audit their financial statements.
3.9.5. Option not to obtain and retain supporting documentation on transfer pricing matters.
3.9.11. Requirements for submitting the Annual Informative Returns on Related Parties (rules 3.9.11 to 3.9.17 related to Action 13 of the OECD Action Plan to Combat Tax Evasion and Profit Shifting, country-by-country reporting, and transfer pricing documentation).
3.9.12. Annual Informative Returns on Related Parties for taxpayers who have filed a notice of suspension of activities in the Federal Taxpayer Registry (RFC).
3.9.13. Submission of the Master Informative Return on Related Parties and the Country-by-Country Informative Return for multinational business groups.
3.9.14. Information and deadlines for submitting the Country-by-Country Informative Return.
3.9.15. Information on the Master Annual Informative Return on Related Parties of the multinational business group.
3.9.16. Information on the Local Annual Informative Return on Related Parties.
3.9.17. Information on the Country-by-Country Annual Informative Return of the multinational business group.
3.19.10. Informative return on entities located in preferential tax regimes (unless proven otherwise regarding the market value of transactions with preferential regimes, these will be considered related party transactions, Income Tax Law Article 179).
5.2.14. Submission of information on goods produced, sold, or imported by the federal entity (applicable to producers or importers of manufactured tobacco) conducted by a marketing or distribution company.
Rules Related to the Implementation of Transfer Pricing Adjustments
3.9.1.1. Section 3.9.1 on Transfer Pricing Adjustments.
3.9.1.2. Increase or decrease in income or deductions derived from transfer pricing adjustments.
3.9.1.3. Deduction of transfer pricing adjustments in the fiscal year in which the income or deductions derived from the related party transactions that originated them were recognized.
3.9.1.4. Deduction of transfer pricing adjustments with prior notice to the SAT.
3.9.1.5. Deduction of transfer pricing adjustments resulting from a resolution issued under Article 34-A of the Federal Tax Code (CFF).
Tax Considerations in Transactions with Related Parties
3.1.5. Exceptions to the application of tax credit for double taxation on payments between related parties.
3.1.19. Accreditation of the proportional amount of Income Tax (ISR) paid in Mexico for the distribution of dividends of foreign residents.
3.3.1.27. Expenses incurred abroad on a prorated basis.
3.3.1.30. Deduction of payments made by Mexican companies considered fiscally transparent under foreign legislation.
3.3.1.31. Deduction of payments made to foreign transparent entities or for the use of hybrid instruments.
3.3.2.3. Maximum percentage deduction of intangible assets acquired through the assignment of rights.
3.10.12. Concept of related parties for authorized donees and means for submitting information.
3.10.15. Causes for revocation of authorization to receive tax-deductible donations.
3.10.19. Investments by legal entities authorized to receive tax-deductible donations (regarding the acquisition of shares in financial entities, even if they are related parties).
3.18.8. Information related to financial derivative transactions carried out by a foreign resident.
3.18.25. Income tax obligations for income received by foreign legal entities that are fiscally transparent.
3.19.1. Chapter 3.19 on Preferential Tax Regimes: Transparent income not subject to preferential tax regimes.
3.19.2. Income of credit institutions not subject to preferential tax regimes.
3.19.5. Proof of income not subject to preferential tax regimes.
3.19.9. Notice of share disposal resulting from an international restructuring.
4.2.5. Acquisition of past-due portfolio from related parties.
11.6.5. Report on loans granted to related parties by production cooperative societies.
Rules Related to Consultations and Rulings on Transfer Pricing
2.1.34. Suspension of the deadline for issuing rulings on revocation appeals (in cases of consultations related to the methodology used for transfer pricing purposes, concerning the application of a tax treaty to avoid double taxation).
2.1.44. Option to submit collective consultations on the application of tax provisions through organizations that group taxpayers.
2.12.8. Consultations on transfer pricing matters.
3.3.1.28. Request for a resolution to deduct interest on debts incurred with related parties.
Maquiladora Regime
3.20.2. Income from the exclusive productive activity of maquila operations.
3.20.4. Companies controlled through maquiladora controlling entities.
3.20.5. Request for a specific ruling for residents in the country who carry out maquila operations.
3.20.6. Option for foreign residents conducting maquila operations through a company with an IMMEX program under the shelter modality to fulfill their tax obligations through said company.
3.20.8. Provisional payments made for the first time by foreign residents through a company with an IMMEX program under the shelter modality.
Hydrocarbon Regime
10.17. Concept of a “same project.”
10.18. Definition of employment related to activities of contractors or assignees.
[1] Las notas en cursiva son agregadas por el autor para facilitar la comprensión de la regla miscelánea
