Tax News Bulletin November 2024

PROVISIONAL OR FINAL PAYMENTS

Provisional or final payments must be made no later than the 17th of the month following the one to which the payment corresponds. However, the deadline may be extended for certain taxpayers based on the sixth numerical digit of their Federal Taxpayer Registry (RFC) code, as outlined in Article 5.1 of the "Decree Compiling Various Tax Benefits and Establishing Administrative Simplification Measures" published on December 26, 2013:

INFORMATIVE DECLARATION OF TRANSACTIONS WITH THIRD PARTIES

Report payments, withholding, crediting, and transfer of VAT related to transactions with suppliers no later than the month following the corresponding period.

The declaration must be submitted by December 31, 2024.

SAT INVITATIONS TO COMPLY WITH ANTI-MONEY LAUNDERING OBLIGATIONS

On November 1, 2024, the Tax Administration Service (SAT) sent a total of 9,287 guidance letters to individuals and entities engaged in activities classified as vulnerable. These letters aim to emphasize the importance of fulfilling tax obligations and highlight the potential consequences of non-compliance.

Through the "Guidance Letter Program," one of SAT's key initiatives, the goal is to promote good practices, strengthen education, supervision, and guidance, and thereby help prevent and identify operations involving illicitly sourced funds.

Under the Federal Law for the Prevention and Identification of Transactions Involving Illicit Funds, vulnerable activities include:

• Gambling, betting, contests, or raffles • Prepaid or service cards • Traveler’s checks • Loans or credits provided by non-financial institutions • Construction or real estate development services • Trading of metals, precious stones, jewelry, and watches • Auctions or sales of artwork • Trading of air, sea, or land vehicles • Armoring services for vehicles or properties • Transport or custody of valuables and cash • Professional services acting on behalf of a client • Public notary services • Receiving donations as non-profit organizations (NPOs) • Customs services (customs brokers or agents) • Personal rights to use or lease properties • Virtual asset service providers

ISSUANCE OF PAYMENT COMPLEMENTS

Article 29-A of the Federal Tax Code (CFF) outlines the requirements for Digital Tax Receipts via Internet (CFDI), including the obligation to issue a CFDI for the total transaction amount when payment is made in installments. Additionally, a CFDI must be issued for each subsequent payment, following established rules.

If the CFDI does not meet the requirements of Articles 29 and 29-A of the CFF, it cannot be deducted or used as a tax credit.

According to Miscellaneous Rule 2.7.1.32, suppliers must issue a CFDI with a Payment Receipt Complement (CRP) by the 5th of each month for payments received in the previous month. However, an analysis of tax regulations indicates that the issuance date of the CFDI with CRP is not a requirement for tax deduction or credit.

While it is recommended to issue documentation accurately and on time to avoid errors and clarifications with the authorities, missing the issuance deadline does not affect the deductibility of the expense.

FREEZING BALANCES AND PAYMENTS ON INFONAVIT LOANS

The Government of Mexico has announced a decision to freeze the balances and monthly payments of two million loans from the National Workers’ Housing Fund (Infonavit) issued before 2013 under the Times Minimum Wage (VSM) scheme. This measure aims to halt annual increases in these loan payments, which were considered excessive.

The benefit will impact four million people, starting with loans issued before 2013 and eventually extending to loans granted between 2014 and 2020 under the old-peso scheme.

Infonavit Director Octavio Romero Oropeza stated that the institution manages a portfolio of 6.2 million loans, of which 4 million were subject to annual increases in debt and payments. Among the frozen loans:

• 500,000 loans will automatically receive discounts and freezes. • 1.5 million borrowers will need to check additional details online.

PRODECON MERGED INTO PROFECO

A recently approved constitutional reform introduces a restructuring of autonomous agencies in Mexico, aiming to simplify public administration and strengthen the independence of their functions. As part of this reform, the Taxpayer Advocate’s Office (PRODECON) will be integrated into the Federal Consumer Protection Agency (PROFECO).

PRODECON, known for defending taxpayer rights, will now fall under PROFECO, which focuses more broadly on consumer protection. While authorities assure that PRODECON’s core functions will be preserved, concerns have arisen about the potential impact on its ability to provide specialized tax advice.

This merger raises questions about how technical and specialized functions will be integrated into a more general-purpose agency. PRODECON has been highly regarded for its role as a mediator between taxpayers and the Tax Administration Service (SAT), while PROFECO operates in a broader domain of consumer issues.

NEW INFORMATIVE DECLARATION PLATFORM

The Tax Administration Service (SAT) has announced that starting December 1, 2024, a new platform will be available for filing the following informative declarations:

• Relevant operations (Form 76) • Foreign entities under preferential tax regimes (Form 63) • Manufacturing, maquiladora, and export service companies (DIEMSE) • Transactions conducted on behalf of members of the oil consortium (Form 81)

The platform offers automatic validation of information. Upon submission, an acknowledgment of receipt is generated immediately. For taxpayers using the batch upload mode, an error file will be provided if issues are detected, detailing the errors and affected records.

The platform is compatible with Edge, Firefox, Google Chrome, and Safari, and it eliminates the need to download the Silverlight application for signing documents.

Additionally, a new option allows users to consult and download acknowledgments of receipt and previously filed declarations from the former platform.

YEAR-END BONUS (AGUINALDO)

The 2024 year-end bonus (aguinaldo) must be paid by December 20, as required by Article 87 of the Federal Labor Law. This benefit, equivalent to at least 15 days of salary, is granted to all employees who have worked the entire year. For those who haven’t worked the full year, the bonus is paid proportionally to the time they have worked.

The aguinaldo is a mandatory right for both private and public sector workers, intended to provide additional financial support during the year-end festivities.

For employers, meeting this obligation is essential, as failure to pay or delays in payment can result in penalties. It’s important for employees to be aware of this right and for employers to ensure payment within the established timeframe, no later than the deadline.

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