Pursuant to Article 76-A of the Income Tax Law (LISR, as per its Spanish acronym), the Mexican companies referred to in Article 32-A, Paragraph 2 and Article 32-H, Sections I, II, II, V and VI of the Federal Tax Code (CFF) that engage in transactions with related parties are required to file with the Tax Authorities the annual Related Party Informative Returns, which refers to the local, master and country-by-country reports.

More specifically, the companies referred to in the second paragraph of Article 32-A of the CFF are those that are required to have their financial statements audited by a certified public accountant if, in the immediately preceding fiscal year, in this case 2023, they have declared taxable income equal to or greater than 1,940,178,120 MXN, as well as those that, at the end of the immediately preceding fiscal year, have shares placed with the general investing public on a stock exchange.

On the other hand, Article 32-H, Sections I, II, II, V and VI of the CFF refer to taxpayers that, in the immediately preceding fiscal year, obtained a cumulative income equal to or greater than $1,016,759,000, as well as those that, at the end of the immediately preceding fiscal year, had shares placed with the general public on a stock exchange; Legal entities domiciled abroad that have a permanent establishment in Mexico, governmental entities of the Federal Public Administration and, finally, taxpayers that are related parties of taxpayers that are required to file a tax statutory return – Dictamen Fiscal as per its Spanish acronym,  for the year 2024.

The local file informative return must be filed by taxpayers who qualify, regardless of whether they are part of a national or multinational group. Section 3.9.12 of the Miscellaneous Tax Resolution (RMF) sets forth the information required in this information statement, which includes, but is not limited to, the following:

1. Information on the structure and activities of the taxpayer, taking into account the description of the administrative and organizational structure of the company, the activities and business strategies of the taxpayer, noting whether it has participated in or has been affected by business restructurings, description of the value chain of the group to which the taxpayer belongs, identifying the location and its participation in such value chain, and the list of competitors.
2. Information on transactions with related parties, including a detailed description of the transaction, the transfer pricing policy, the strategy for the development, improvement, maintenance, protection and exploitation of the intangible assets of the group to which the taxpayer belongs, copies of the contracts concluded, functional transaction analysis and economic analyses.
3. Financial information, including individual and consolidated financial statements, related party financial and tax information.

On the other hand, the Master File report requests information from the Multinational Group. Section 3.9.11 of the RMF lists the contents of the RMF, which can be summarized in the following main topics: 

1. Legal organizational structure of each business unit.
2. Overview of the multinational group's operations, including business model, value drivers, supply chain, relevant intercompany service agreements, major geographic markets, functions performed, assets used and risks assumed, and description of business restructurings.
3. Intangible assets of the multinational group.
4. Information about financial activities.
5. Financial and tax position of the multinational corporate group.

Finally, taxpayers that are required to file the Master File return will have the option of submitting the information prepared by a foreign entity that is part of the same multinational group, provided that it is submitted by the required taxpayer in Spanish or English and its content is consistent with the Final Report of Action 13 of the Base Erosion and Profit Shifting (BEPS) Action Plan. 

The deadline for filing the 2024 local transfer pricing information return is May 15, 2025, and the deadline for filing the master information return is December 31, 2025. 

J.A. DEL RÍO offers a wide array of specialized consulting services to assist you with these and other matters, in order to ensure that your project complies with the applicable characteristics  contained in this agreement.

If you have any questions, J.A. DEL RÍO can provide you with our experts to advise 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.