Transfer pricing miscellaneous tax rules guide
The 24 of April of this year the Mexican Official Gazette -Diario Oficial de la Federación- published the miscellaneous tax resolution for 2019 containing norms regarding the transfer pricing regime. The following is a summary of the norms that are either directly or indirectly related to the regime, organized by subject. We are at your disposal for any comments or questions.
Transfer Pricing Documentation Rules
2.8.5.5. Option to not present the transfer pricing information on the tax statutory report (dictamen fiscal) or in the taxpayer tax situation return (ISSIF) (by presenting the transfer pricing informative return)
2.19.5. Mexican taxpayers –corporations- carrying out transactions with foreign taxpayers
3.9.3. Deadline to submit information from foreign associated companies by taxpayers who choose or have the obligation to obtain a tax statutory report
3.9.4. Deadline to submit information of foreign associated companies by taxpayers who do not have the obligation to file tax statutory reports
3.9.5. Option to not obtain or retain transfer pricing documentation support
3.9.11. Requirements to submit the annual transfer pricing returns (rules 3.9.11. to 3.9.17 are on regards of the submission of the country by country report, master file, and local file returns, per the recommendations of action 13 of the action plan vs. base erosion and profit shifting –country by country report and transfer pricing documentation)
3.9.12. Annual Transfer pricing informative returns of taxpayers who have submitted notice of suspension of activities in the taxpayer´s federal registry
3.9.13. Presentation of the Master File and Country by Country report of the multinational corporation
3.9.14. Information and deadlines for submission of the Country by Country Report
3.9.15. Information from the Master File of the multinational group
3.9.16. Information from the annual local file informative return
3.9.16. Information from the annual country by country report
3.19.10. Informative tax return of operations with residents in preferential tax regimes or tax havens (for Mexican tax purposes, operations with tax havens are considered operations with associated companies unless prove of their arm´s length value)
5.2.14. Presentation of information of goods produced and imported per federative entity [DSG1] carried out by a marketing or distribution company (on regards of importers or producers of worked tobacco)
Transfer Pricing Adjustment Rules
3.9.1.1. Section 3.9.1. Transfer Pricing Adjustments
3.9.1.2. Increase or decrease in income or deductions derived from transfer pricing adjustments
3.9.1.3. Deduction of transfer pricing adjustments in the fiscal year in which the income or deductions derived from transactions with associated companies that originated them were recognized
3.9.1.4. Deduction of transfer pricing adjustments with prior notice to the Mexican Tax Authorities –SAT-
3.9.1.5. Deduction of transfer pricing adjustments resulting from a tax ruling issued in terms of article 34-A of the Federal Tax Code
Tax and Transfer Pricing Specific Rules
3.1.5. Exceptions to the application of the accreditation of double legal taxation for payments between associated companies
3.1.19. Accreditation of the proportional amount of the ISR paid in Mexico for the distribution of dividends of foreign residents
3.3.1.27. Pro-rata expenses with foreign companies
3.3.1.30. Deduction of payments made by Mexican companies considered as transparent [DSG2] by foreign laws
3.3.1.31. Deduction of payments made to transparent foreign entities or to hybrid instruments
3.3.2.3. Maximum percentage of deduction of intangible assets acquired by assignment of rights
3.5.3. No withholding for interest payments
3.10.12. Concept of associated companies for authorized donees and means to present information
3.10.15. Reasons for revocation of the authorization to receive deductible donations
3.10.19. Investments of corporations authorized to receive deductible donations
3.18.8. Information related to derivative financial transactions made by a resident abroad
3.18.14. Withholding tax of non-allowable interest payments
3.18.25. Triggering income tax for income received by foreign legal entities that are tax transparent
3.19.1. Chapter 3.19. Of the preferred tax regimes (tax havens). Transparent income not subject to preferential tax regimes
3.19.2. Revenue from credit institutions not subject to preferential tax regimes
3.19.5. Proof of income not subject to preferential tax regimes
3.19.9. Notice of transfer of shares resulting from an international restructuring
4.2.5. Purchase of past due receivables of associated companies[DSG3]
11.6.5. Report regarding loans granted to associated companies by the cooperative production companies
Tax Consultations and Rulings
2.1.34. Suspension of the deadline for issuing resolutions in the administrative appeal for revocation [in the case of inquiries made due to the methodology used for transfer pricing purposes in relation to the application of a treaty to avoid double taxation]
2.1.44. Option to present collective consultations on the application of fiscal provisions, through taxpayer´s organizations
2.1.2.8 Transfer pricing consultations
3.3.1.28. Request for a tax ruling to deduct interest for debts contracted with associated companies
Maquila Regime
3.20.2. Income derived solely from maquila operations
3.20.4. Companies under maquila controllers
3.20.5. Request for a particular tax ruling for residents in the country that carry out maquila operations
3.20.6. Option for residents abroad to carry out maquila operations through a company with an IMMEX program under the shelter modality, fulfilling their tax obligations through said company
3.20.8. Provisional payments made by residents abroad for the first time through a company with an IMMEX program under the shelter modality
Hydrocarbons Regime
10.17. Concept of “same project”
10.18. Notion of employment related to activities of contractors or assignees
