Doing Business

Doing Business in Mexico 2015

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118 Tax and Legal Services - PwC Mexico Administration of the tax system Taxes are imposed by the federal, state and local governments through the federal and state legislatures. The federal income tax, value-added tax, and customs laws are administered by the Internal Revenue Service (Secretaría de Hacienda y Crédito Público–Servicio de Administración Tributaria or SAT), therefore, such organism collects the taxes for the state. Corporate taxpayers Tax returns Corporations are required to file an annual income tax return for each calendar year no later than March 31 of the following year and to pay the balance of tax due at that time. A newly organized company must file its first return for the period ending on December 31 of the year of incorporation. In cases where taxpayers have chosen to have their financial statements audited by a certified public accountant, these must be filed, together with the accountant's opinion on the taxpayer's compliance with the tax laws, by July 15 of the following year. Penalty interest is payable on any unpaid amount. Information returns An annual information return must be filed by February 15 of the following year providing details of suppliers and customers and the volume of transactions with each. Additionally, annual information returns are due by February 15 of the following year covering investments in low-tax jurisdictions, taxes withheld on payments abroad and to certain residents, charitable donations, and on loans received from or guaranteed by foreign residents. An annual information return regarding transactions with related parties abroad should be filed with the annual income tax return. Amended returns A taxpayer may not file an amended return for a given year more than three times, except when the amendment is a result of an audit by the authorities or it results in an additional tax liability or a reduction in a net tax loss carry forward. Assessments The taxing system is largely one of self-assessment by means of periodic tax returns subject to audit by the authorities. Great reliance is placed on the requirements for tax withholding by those who make payments representing taxable income to the recipient, except for payments to resident business enterprises. Filing of financial statements and opinions of public accountants As a mean of facilitating the official review of corporate tax compliance, the Federal Tax Code contains an optional procedure that, if elected, requires business enterprises to file audited financial statements together with the tax opinion of an independent public accountant registered with the Ministry of Finance.

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