On September 8, 2022 the Federal Executive Branch, [in Spanish: el Ejecutivo Federal], through the Ministry of Finance and Public Credit, [in Spanish: la Secretaría de Hacienda y Crédito Público], submitted an Economic Package for 2023 to the Congress of the Union that includes the following:
1) An initiative of the Federal Income Law, [in Spanish: la Ley de Ingresos de la Federación], for the 2023 fiscal year
2) A Federal Expenditure Budget Project for the 2023 fiscal year
3) General Economic Policy Guidelines
4) A proposal for reforming the Federal Tax Act [in Spanish: la Ley Federal de Derechos]
5) A proposal for modifying the Federal Budget and Fiscal Responsibility Law [in Spanish: la Ley Federal de Presupuesto y Responsabilidad Hacendaria]
This economic package is currently in the Chamber of Deputies, [in Spanish: la Cámara de Diputados], for review and approval, and if approved, will come into effect as of January 1, 2023.
It is worth mentioning that this year the Federal Executive Branch did not propose amendments to any laws or tax regulations (the Law on Income Tax [in Spanish: la Ley del Impuesto Sobre la Renta], the Value-Added Tax Law [in Spanish: la Ley del Impuesto al Valor Agregado], the Special Tax on Production and Services Law [in Spanish: la Ley del Impuesto Especial sobre Producción y Servicios], and the Federal Tax Code [in Spanish: el Código Fiscal de la Federación]); in order to have legal certainty regarding the economic activities of the country and to increase the appeal of direct foreign investment.
With regard to tax matters, incentives and overhead rates will be sustained for 2023, considering only an increase in Income Tax withholdings by the financial system.
As a result, for the 2023 fiscal year there will be no new taxes or amendments to the current rates. However, the Ministry of Finance has proposed an increase in public expenditures for 2022, which could result in activities by the authorities to carry out more active oversight activities.
The head of the Tax Administration Service, [in Spanish: SAT], commented that they are expecting to implement tax instruments, as well as to audit large contributors, and in general, to continue with the same practices that will result in reducing tax evasion; which could envision an increase in revenue-generating activities through any of the possible scenarios such as:
• Audits, including some in conjunction with state governments,
• In-depth oversight programs,
• Fines related to the Digital Tax Receipt 4.0 [in Spanish: CFDI 4.0], and the consignment note complement,
• Fines in matters concerning the identification of the controlling beneficiary,
• Foreign trade or transfer pricing,
• Cancellation of digital stamps.
Considering the possible scenario for 2023 by the tax authorities, it is imperative to be in compliance with your obligations with respect to tax matters. Consequently, we can help you with a risk prevention assessment for your company.
If you have any questions, J.A. DEL RÍO can provide you with our experts to advise you in matters concerning compliance with your legal and tax obligations. Once again, please let us know if we may be of any further assistance to you at: contacto@jadelrio.com.
