Tax Miscellaneous for 2022 Approved

October 20, 2021

“The Chamber of Deputies approved, in general, by 260 votes in favor, 218 against and zero abstentions, the Tax Miscellaneous Law for the fiscal year 2022 sent by the Federal Executive on September 8, as part of the Economic Package for Fiscal Year 2022”, Vértigo Político reports.

This new regulation proposes to introduce changes to the Income Tax Law, the Value Added Tax Law, the Production and Services Tax Law, the Federal Tax Code, and others.

1. Modifications to the Income Tax Law

The main purpose is to regulate the authorizations granted by the tax authority for the sale of shares at a fiscal cost in cases of restructuring of companies incorporated in Mexico belonging to the same group, to combat the illicit market of hydrocarbons and petroleum products, and to eliminate the exception currently considered for payments for technical assistance, technology transfer, or royalties.

Likewise, to specify that there is no obligation to file informative returns for withholdings of professional services and also to simplify the tax incorporation regime, to establish the withholding rate for interest for residents abroad.

To indicate the creation of the Simplified Trust Regime as one of the main measures to exempt from the payment of Income Tax to individual taxpayers exclusively engaged in agricultural, livestock, forestry, or fishing activities, as long as the amount of their income in the fiscal year in question does not exceed 300,000 pesos.

2. Modifications to the Value Added Tax Law

The modifications to the LIVA (Ley del Impuesto al Valor Agregado Value Added Tax Law) establish a 0% tax rate for the sale of products destined for human and animal consumption. In addition, the modification of the tax treatment of menstrual management products and the indication of VAT crediting requirements.

On the other hand, the SAT is empowered to determine the manner the taxpayer will report the obligations in the pre-operational period, specifying the obligations of foreign residents who provide digital services to recipients located in national territory, clarifying that the temporary use or enjoyment of goods in the national territory has always been subject to VAT payment, regardless of the material delivery of the goods that will be the object thereof.

3. Modifications to the Federal Tax Code

It is proposed to modify, among the main changes, the following: 

  • The powers of verification to financial institutions, legal entities, fiduciaries, settlors, or trustees.
  • To harmonize the references concerning Transfer Pricing provisions, include the power to carry out a domiciliary visit to financial institutions, fiduciaries, settlors, or trustees, in the case of trusts, and contracting parties or members, in the case of any other legal entity.
  • To determine the exceptions to the order of the sequential review, specify the fine applicable to the Optional Regime for Groups of Companies and update the infractions and sanctions for financial institutions.

Additionally, to indicate that the status of resident in Mexico will not be lost if the person does not prove its change of residence or does not file it, eliminate the reference to the declaration receipt by banking institutions, among others.

These new measures are projected to take effect as of the fiscal year 2022.

Fuente: Vértigo Político 20/10/21