MEXICO Trends and Developments Contributed by: Luis Ignacio Martel and Jorge A. Cabello, Martel
issuance of tax receipts, the corresponding income code was not reported in the type of receipt field, and when it is detected that taxpayers have final tax cred - its that have not been fully paid, together with their accessories, provided that in the fiscal year imme - diately preceding the year in which the restriction is imposed they issued tax receipts for a total amount exceeding four times the historical amount of the tax credit. Denying registration with the Federal Taxpayers Registry (Registro Federal de Contribuyentes) The SAT has been empowered to deny the registra - tion of legal entities in the Federal Taxpayer Registry when it detects situations related to their legal repre - sentative, any partner or shareholder, or any person forming part of their organisational structure pursu - ant to their by-laws or the law under which they were incorporated – for example, when such persons fall within certain scenarios established for rendering digital seal certificates without effect, have final tax credits outstanding, or are classified as not located, among others. Financial Sector/Insurance Companies Value added tax (Impuesto al Valor Agregado – VAT) credit on insurance indemnities For insurance companies, VAT will not be creditable when it has been transferred on to them in the acquisi - tion of goods or the receipt of services, nor when VAT has been paid upon importation, if such goods or ser - vices are used to perform the insurance contract and the indemnity consists of compensation for damages or the replacement of the insured asset through third parties, in accordance with the Insurance Contract Law ( Ley del Contrato de Seguro ). Taxpayers who hold a valid authorisation from the National Insurance and Surety Commission ( Comisión Nacional de Seguros y Fianzas ) to be organised and operate as an insurance institution may treat as credit - able the VAT transferred on in the acquisition of goods or receipt of services up to 31 December 2024, sub - ject to compliance with certain requirements and to the regularisation of their tax position with respect to VAT transferred on after that date.
In order to mitigate the tax impact, a tax incentive was granted equivalent to the amount of VAT that would have been credited, applicable to certain taxpayers and under the scenarios provided for such purposes, provided that it is demonstrated that the payment cor - recting their tax situation, as described in the preced - ing paragraph, is made no later than 31 March 2026. Facilities/relief measures for the financial system With respect to uncollectible loans, an area in which recent reforms tightened the requirements for deduct - ing non-performing loan portfolios, the SAT has been empowered to issue general administrative rules in order to grant administrative relief allowing credit insti - tutions to evidence the clear practical impossibility of collection for purposes of calculating their income tax. Income tax withholding rate on capital giving rise to interest payments The annual withholding tax rate on interest paid by the financial system has been increased from 0.5% to 0.9%. In general terms, no new tax incentives have been granted, and the incentives in force for 2025 were maintained, subject to the same requirements and restrictions that had been applicable with respect to income tax and the special tax on production and services. Miscellaneous Tax incentives Notwithstanding the foregoing, a 100% reduction of surcharges and penalties is made available to taxpay - ers whose gross income in fiscal year 2024 did not exceed MXN300 million, with respect to tax credits or outstanding tax liabilities derived from their own taxes, as well as from taxes withheld or transferred, that were incurred in fiscal year 2024 or in prior fiscal years. Eligibility for this incentive is conditioned upon the payment of the updated principal amount of the rel - evant tax contributions. This benefit shall remain in effect until October 2026. Finally, it was established that the head of the Execu - tive Branch may grant the tax benefits necessary to ensure due compliance with resolutions arising from
349 CHAMBERS.COM
Powered by FlippingBook