On Monday, January 20, the Official Gazette of the Federation published Annex 16 of the Miscellaneous Tax Resolution for fiscal year 2020, which was originally published on December 28, 2019. This document provides the integration and characteristic guidelines, guide formats for the submission of financial statements for tax purposes issued by a registered public accountant, as well as the related questionnaires applicable to different types of tax reports.<\/p>\n\n\n\n
This document introduces modifications compared to the previous fiscal year, which must be considered by taxpayers required to submit the tax report or those who choose to do so. The changes are as follows (based on the general legal regime report):<\/p>\n\n\n\n
Annex 16 requires information on related-party transactions in four sections. The third section introduces a novelty by questioning the taxpayer about whether their business operations generated unique and valuable contributions (benefiting the group to which they belong), whether the transaction was agreed upon at arm\u2019s length (as independent third parties would in comparable transactions), and whether a tax adjustment was necessary to reflect these values. Regarding the concept of “unique and valuable contributions,” it states:<\/p>\n\n\n\n
For the first time, taxpayers who have implemented transfer pricing adjustments must not only report the adjustment amount but also its impact on Value-Added Tax (VAT), assuming an accounting and tax adjustment:<\/p>\n\n\n\n
Along with the quantitative data required by SIPRED for intercompany transactions, qualitative information is also required in the transfer pricing questionnaire. This questionnaire, for the first time, and in relation to RMF 2.8.5., asks whether the taxpayer opted to submit SIPRED instead of Annex 9 of the DIM (Informative Return of Transactions with Foreign-Related Parties).<\/p>\n\n\n\n
Regarding adjustments and related to Part IV of Annex 16, taxpayers must provide information on the reduced amount in VAT creditable declarations due to transfer pricing adjustments. Similarly, the questionnaire asks about the impact of adjustments on the Special Tax on Production and Services (IEPS), inquiring whether taxable activities or creditable IEPS amounts were modified due to a transfer pricing adjustment under RMF 3.9.1.2.<\/p>\n\n\n\n
Another new aspect of the transfer pricing questionnaire involves transactions with entities located in Special Economic Zones (ZEE) and\/or entities benefiting from the “Fiscal Incentives Decree for the Northern Border Region.” In both cases, the taxpayer must provide information on the taxable income and authorized deductions obtained from transactions with entities benefiting from these regimes.<\/p>\n\n\n\n
The transfer pricing questionnaire continues to request information from taxpayers (and assess their risk level), asking whether they have transacted with related parties that fall under non-binding transfer pricing criteria (particularly criteria 39 and 40, which involve recognizing unique and valuable transactions and implementing adjustments within the interquartile range).<\/p>\n\n\n\n
Additionally, a new section, \u201cDeclared Transactions with Domestic Related Parties\u201d<\/strong>, includes two questions:<\/p>\n\n\n\n Finally, for maquiladora regime taxpayers, the questionnaire includes a detailed analysis of relevant account values to confirm compliance with the regime, including raw materials, semi-finished and finished products, and fixed asset values for depreciation.<\/p>\n\n\n\n The transfer pricing regime in Mexico is in a transitional phase, incorporating recent recommendations from the OECD\u2019s BEPS plan and Mexican tax authorities through various published criteria. It is important to note that if a taxpayer\u2019s transfer pricing documentation does not reflect these regulatory changes, they may be left in a vulnerable position and could even fail to identify reportable schemes related to transfer pricing.<\/p>\n\n\n\n This information requirement is not only applicable to taxpayers submitting SIPRED but also to those filing their ISSIF, as per Miscellaneous Rule 2.19, published on December 28, 2019, in the Official Gazette of the Federation.<\/p>\n\n\n\n For any questions regarding this document, we remain at your service.<\/p>\n\n\n\n [1]<\/a> https:\/\/www.dof.gob.mx\/nota_detalle.php?codigo=5584394&fecha=20\/01\/2020<\/a><\/p>\n\n\n\n [2] Development, Enhancement, Maintenance, Protection and Exploitation.<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" On Monday, January 20, the Official Gazette of the Federation published Annex 16 of the Miscellaneous Tax Resolution for fiscal year 2020, which was originally published on December 28, 2019. This document provides the integration and characteristic guidelines, guide formats for the submission of financial statements for tax purposes issued by a registered public accountant, […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[60],"class_list":["post-757","post","type-post","status-publish","format-standard","hentry","category-news","tag-sipred"],"yoast_head":"\n\n
Final Considerations<\/strong><\/h3>\n\n\n\n
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