On October 19th, the third amendment resolution to the Miscellaneous Tax Resolution for 2018 and exhibits thereof was published; the following is a summary of some important aspects to consider:
Addition of three new exhibits on hydrocarbons
Exhibit 30 “Technical specifications on functionality and security of equipment and computer programs to have volumetric controls on hydrocarbons and oil-bearing items”.
Exhibit 31 “Verification services on the correct operation and functioning of equipment and computer programs to perform volumetric controls and certificates issued”.
Exhibit 32 “Services for issuing resolutions determining the type of hydrocarbon or oil-bearing product, and the octanes in the case of gasoline, and the reports issued”.
Proceeding on documentation and information that may be contributed to challenge the assumption of undue transfer of tax losses
During June 2018, reforms to the Federal Tax Code were published on the Federal Official Gazette, regarding the incorporation of the new article 69-Bis, whereby tax authorities may assume the undue transfer of tax losses when the taxpayer intending to deduct them has been part of a restructure, Split-up or merger of companies, a change in stockholders, which caused said taxpayer to no longer be a part of the group it once belonged to.
A new proceeding number (276/CFF) is considered, whereby the authority establishes the documentation and information that would be considered to challenge the assumption of undue transfer of tax losses.
References to Mexico City and Mayor Offices
It is clarified that any reference to Mexico City and Mayor Offices such as Federal District and Delegations, shall be understood as the same, respectively, therefore said situation shall not be deemed a violation to the tax provisions and any brief or proceeding filed before tax authorities shall be deemed valid.
Criteria confirmation to taxpayers subject to verification authority
Taxpayers, subject to the exercise of tax verification authority shall have the option to consider criterion confirmations contrary to non-binding and normative criterion are binding to the authority until the moment of issuance thereof, provided they comply with the following requirements:
a) Criteria confirmation was issued before the exercise of verification authority.
b) The non-binding or normative criterion was issued after the criterion confirmation mentioned on the preceding item.
c) A new consultation is filed stating the situation mentioned on the first paragraph.
The exercise of this option does not prevent the tax authority from pursuing the harmfulness lawsuit for the period when the favorable resolution produces legal effect.
Authorization of third-parties as of January 2, 2019
A new mechanism is considered in order for taxpayers to authorize third parties to carry out transactions on their behalf and use services available within the SAT applications, for this, authorized third-parties may accept or reject said authorization when using the application “Authorized Third Parties” on the Tax Mailbox.
In addition, taxpayers may amend or cancel said authorization, this will produce effect upon finalizing the last active session of the authorized third-party within SAT applications.
For these purposes, SAT will inform through its website, of the available services and proceedings, as this rule will apply as of January 2, 2019.
New CFDI complement for persons or institutions managing “retirement plans”
Artificial persons managing personal retirement plans, engaged individually or collectively and other institutions with a similar purpose, through voluntary retirement contributions and special savings accounts, shall add the CFDI Complement for “Retirement Plans” published by SAT for this purpose.
In addition, insurance institutions, credit institutions, stock-brokerage firms, retirement fund management companies and mutual companies will be deemed authorized to manage personal retirement plans provided they filed the corresponding notice and are listed on the SAT authorized institutions list, to be published on January 2019.
List of institutions authorized to manage personal retirement plans
SAT will annually publish a list of institutions authorized to manage personal retirement funds on January, which will consist of information received as of December 31, of the immediately previous fiscal year
Amendments to the definition of standard or standardized software
It is important to mention the amendment to rule 2.1.37., which could increase the scope of the definition of royalties on the payment for the use or temporary enjoyment of software applications pursuant to article 12 of the agreements to avoid double taxation and tax evasion applicable in Mexico.
The foregoing as paragraphs stating the modification of the source code is not required to be considered an adapted application were eliminated, as well as the exception to consider as adapted, when the standard or standardized application is increased by another of the same characteristic.This could lead to any amendment or addition made to a “software”, regardless of how simple or superficial it may be, and even though, it does not include any variation to the source code of the standard or standardized application could cause payment to be deemed as a royalty for the purposes of article 12 of the treaties mentioned on the first paragraph.
New non-binding criteria for tax provisions (Exhibit 3)
A new non-binding criteria for tax provisions is issued, regardless of the “Determination of cost of goods sold for taxpayers performing commercial activities consisting on the acquisition and sale or merchandise”, considering there is an undue tax practice by the taxpayer that, upon determining the cost of goods sold for merchandise, does not take into consideration the amount starting and ending inventory of merchandise for each fiscal year, as well as deduct fully or partially the cost of merchandise not sold during the corresponding fiscal year and the advising or participation in the implementation of these practices.
Addition of normative criteria
A new normative criteria is included, considering the sale of film or plastic cushioning for agricultural use is subject to a VAT rate of 16%, as these are not under the definition of fertilizers, pesticides, herbicides and fungicides.
If you need further information in this regard, please contact us and we will be pleased to assist you with any concern or any other tax-related matter.
