MEXICO Law and Practice Contributed by: Ángel Escalante, Gabriel Rojas, Daniel Colunga and Brenda Favela, Escalante & Asociados
Following a 2022 tax reform, legal entities operat - ing under an IMMEX tax incentive programme are no longer allowed to request or renew advance pricing agreements (APAs) as a transfer pricing compliance mechanism. Instead, they must comply with Safe Har - bour rules, which have become the exclusive compli - ance framework for maquilas (foreign-owned manu - From an international tax perspective, Mexico does not currently offer formal programmes aimed at obtaining tax certainty that are comparable to the co-operative compliance frameworks or enhanced engagement models implemented in other jurisdictions. However, at the domestic level, Mexican law provides certain mechanisms that may contribute to tax cer - tainty, particularly through the possibility of obtaining advance rulings from the tax authorities. facturing plants in Mexico). 9.2 Other Mechanisms
Taxpayers may submit binding consultations to SAT regarding the interpretation and application of tax pro - visions to specific factual situations. These rulings are generally binding on the tax authorities with respect to the requesting taxpayer, provided that the facts pre - sented are accurate and complete. Notably, such rulings are not subject to appeal, meaning that taxpayers cannot challenge their con - tent through administrative or judicial means. As a result, while they may provide a degree of certainty, they do not constitute a negotiated or co-operative compliance mechanism, nor do they involve ongoing engagement between taxpayers and the tax authori - ties. Accordingly, Mexico’s approach to tax certainty in international matters remains primarily rule-based and transactional, rather than based on continuous or co-operative relationships between taxpayers and the tax administration.
309 CHAMBERS.COM
Powered by FlippingBook