MEXICO Law and Practice Contributed by: Luis Álvarez Cervantes, Adolfo Athié Cervantes, Alejandro Barrera, Jesús Colunga, Eduardo Kleinberg, Juan José López de Silanes, Carlos Martínez-Betanzos and Amílcar Peredo, Basham, Ringe y Correa S.C.
accrued interest surpasses MXN20 million for the tax - payer and related group entities. 5.6 Transfer Pricing Mexico’s transfer pricing rules require that related- party transactions (domestic or cross-border) be car - ried out at arm’s length under conditions that would have been agreed between independent parties in comparable transactions. Mexico must apply OECD- recognised methods (CUP, resale price, cost plus, profit split, residual profit split and TNMM), selecting the most appropriate. 5.7 Anti-Evasion Rules There are anti-evasion rules in Mexico, such as back- to-back, thin capitalisation rules, principal purposes test, disclosure of reportable schemes, beneficial ownership rules, anti-hybrid mismatch rules, the EBDITA rule, CFC rules and transfer pricing rules. 5.8 Tariffs In Mexico, the tariff system primarily consists of the general import tax, which must comply with the maximum levels set by the World Trade Organization (WTO). Additionally, there are preferential tariffs for goods coming from countries with which Mexico has free trade agreements (FTAs). Mexico has a network of trade agreements with approximately 50 countries. Mexico imposes low tariffs; however, as noted in its most recent Trade Policy Review at the WTO, the tar - iffs on agricultural products are higher than those on non-agricultural products. The recent policies and actions of the US government have had significant effects on global trade, including in Mexico. In the coming months, Mexico, Canada and the United States will conduct the USMCA review. The outcome of this review will be crucial for Mexico’s international trade, as it may lead to regulatory adjust - ments and provide greater certainty for regional trade.
tions and must be notified to the competition author - ity – the National Antitrust Commission (CNA) which succeeded the Federal Economic Competition Com - mission (COFECE) in October 2015 – when they meet the monetary thresholds set by the LFCE. Pre-merg - er notification is mandatory once any of the below thresholds are exceeded. • Transaction value – when the transaction, or series of transactions, irrespective of the place of execu - tion, result in a direct or indirect amount in Mexico of more than 16 million measurement units (UMA), currently equivalent to MXN1,876,960,000 (approx - imately USD108,196,476 at an exchange rate of MXN17.3477 per US dollar, according to the Bank of Mexico exchange rate on 18 Mat 2026). • Size of the target – when the transaction or series of transactions result in the accumula - tion of 30% or more of the assets or shares of an economic agent whose assets or annual sales in Mexico exceed 16 million UMAs, currently equivalent to MXN1,876,960,000 (approximately USD108,196,476). • Size of the parties – when the transaction or series of transactions imply an aggregation in Mexico of assets or share capital that exceed 7.4 million UMAs, currently equivalent to MXN868,094,000 (approximately USD50,040,870), and the parties involved, either individually or combined, have assets or annual sales in Mexico exceeding 40 million UMAs, equivalent to MXN4,692,400,000 The LFCE defines concentration as the merger, acqui - sition of control, or any act through which companies, associations, shares, partnership interests, trusts or assets in general are joined together, and carried out among competitors, suppliers, clients or any other economic agents. It includes acquisition of shares, equity interests, assets and joint venture agreements, among others. Additional Considerations (approximately USD242,529,474). Types of Transactions Covered • Gun-jumping prohibition – the transaction can - not be closed, and no control or influence can be transferred until clearance is granted. Failure to notify a transaction that exceeds any of the statu -
6. Competition Law 6.1 Merger Control Notification
Under the Federal Economic Competition Law (LFCE), mergers and acquisitions are deemed as concentra -
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