Inter account bank transfers – Presumed as taxable income The Tax Administration Service (“SAT”) has recently assumed bank transfers between a taxpayer’s accounts as taxable income. A determination from SAT must be challenged. The Federal Court of Administrative Justice has recently issued a ruling that lists the proper documentation to eliminate the presumption of the…

LEGAL ALERT: Election day -Mandatory rest day. On June 6th, 2021, federal and local elections will be held in Mexico. For such purposes, employers should be aware that such date is considered to be a mandatory rest day for labor purposes. Therefore, they must consider various employer obligations if their employees work on June 6th, 2021. Please find herewith…

Possible changes regarding the Federal Maritime and Terrestrial Zone. On April 21st, 2021, a legislative initiative was presented in the Senate of the Republic in order to reform the General Law of National Property (the “Law”). Such initiative will be sent to the House and will continue to be discussed. Nevertheless, taking into account its…

Annual Corporate Compliance. In accordance with Mexican law, there are several corporate obligations that all Mexican entities must comply with. Hereunder please find a summary of the main ones: I. Annual meeting of shareholders or partners. In accordance with the Mexican General Law of Commercial Entities, shareholders or partners of a commercial entity are required…

Suspension of the Importer’s Registry. There are more than 35 causes for the suspension of a company’s importer registry and that the Tax Administration Service (“SAT”) makes effective when a taxpayer falls on one of such causes. One must consider that any suspension of the importer’s registry may last for more than one month. That…

Excessive Charges in the Water Supply Bill. Previously, TP Legal informed its clients of a recurring problem relating to various actions and/or “persuasive” collection efforts that are being carried out by the Water Company in all the municipalities of the State of Baja California (Tijuana-CESPT, Ensenada-CESPE, Mexicali-CESPM and Tecate-CESPTE), for alleged debts of connection fees…

Reportable Schemes. As of this year, taxpayers have the obligation to disclose “reportable schemes” to the Tax Administration Service (“SAT”) by which a tax benefit is or has been obtained in Mexico. In summary: The deadline for disclosing the reportable schemes is February 15, 2021. A review of 2020 operations must be done to determine…

Increase of the Minimum Wage in 2021. Starting on January 1st, 2021, the general minimum wage in Mexico will increase as follows: From $123.22 pesos per day to $141.70 pesos per day in the entire country except for the free zone located on the northern border of the country, and From $185.56 pesos per day…

Amendment to the Labor Law regarding Teleworking. On December 9, 2020, the Mexican Senate approved an initiative that amends various articles of the Federal Labor Law in order to introduce “home-office”, including Article 311, and adds Chapter XII BIS to the Federal Labor Law to introduce “teleworking”. It is important to note that, in principle,…

CHANGES TO THE BENEFIT OF VAT CERTIFIED COMPANIES. Dear friends: On July 24, 2020, the Secretary of Finance and Public Credit (“Hacienda”) published in the Federal Official Gazette, the first amendment to the Foreign Trade General Rules of 2020. The main impact of the amendment is to VAT certified companies. The only major benefit that…

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