Transfer Pricing rules for 2022
Transfer Pricing rules for 2022

Derived from the 2022 tax reform, there are modifications regarding Transfer Pricing in the Mexican Income Tax Law (hereinafter “MITL)” and the Mexican Federal Tax Code (hereinafter “MFTC”) in force as of January 1, 2022.

The most relevant implications and detail are presented as follow:

  • Domestic Transactions: An explicit reference is made in MITL to prepare transfer pricing documentation for transactions with foreign and domestic related parties. In the past, it was only required for transactions with related parties abroad.

  • New Filling Dates: The filing dates of the related parties’ tax return (Annex 9 of the Multiple Informative Return) and Local File changed to May 15. The Master File filling is kept until December 31 of the immediately following fiscal year. The transfer pricing documentation must contain a functional analysis related to the functions developed, assets used, and risks faced of the related parties with whom the transactions are carried out.

  • Companies required to Local File and Master File: An extra condition is added so that companies are required to submit the i) Local File, ii) Master File, and iii) CbC Report. That is, those entities with domestic related parties required to submit the Tax Statutory Report (Dictamen Fiscal), will now be required to submit the Local and Master File. 

  • Modifications in supporting documentation content: Specific information must be included in the data and elements of comparability, as well as the details of the application of the applicable adjustments. The economic analysis only must consider the fiscal year under analysis for comparable companies.

  • Maquila: The only option for calculating the taxable income of maquila companies is the Safe Harbor. The Advance Pricing Agreement (APA) option is eliminated for this purpose.

  • Secret comparable: In an audit process by Mexican Tax Authorities, with the purpose of reaching the resolution of tax credits, companies may have access to confidential information obtained from independent third parties regarding comparable operations of the taxpayer subject to review.


Domestic Transactions

Article 76 sections IX and X of the MITL are modified, where the reference to residents abroad is eliminated from the wording, and therefore taxpayers in national territory and abroad must obtain and keep the supporting documentation with which they demonstrate that the transactions with related parties carried out during the year complies with Arm´s Length Principle, and for such transactions, the informative declaration of related parties must be presented, that is, Annex 9 of the Multiple Informative Return.

It is important to mention that in the past, the MITL established explicit differences between the documentation requirements for operations with related parties abroad and in Mexico. For the fiscal year 2022, these differences are eliminated, and the requirements, therefore, will apply to all transactions with related parties regardless of the fiscal jurisdiction residence.

Filling deadlines modifications

The filling dates of Annex 9 of the Multiple Informative Return and the Local File are modified, leaving May 15 of the year immediately after the end of the year in question, as the deadline.

The following table shows the applicable dates for each obligation:

Old Deadline 2022

New Deadline 2023

Type of obligation

March 31, 2022 or July 15, 2022

May 15, 2023

Annex 9 - Multiple Informative Return

December 31, 2022

May 15, 2023

Local File

December 31, 2022

December 31, 2023

Master File.


March 31, 2022

March 31, 2023

ISSIF and Transfer Pricing Annex

July 15, 2022

May 15, 2023

Tax Opinion and Transfer Pricing Annex

Taxpayers are required to Local File and Master File 

As of 2022, Article 76-A of the MITL established that the taxpayers indicated in article 32-A, second paragraph, and article 32-H, sections I, II, III, IV, and VI of the MFTC, who carry out transactions with related parties, in addition to what is indicated in article 76, sections IX and XII, and in relation to article 179, first and last paragraph of the MITL, it must send to the Tax Authorities the annual informative return of related parties .

The second paragraph of article 32-A of the MFTC is added, which states that taxpayers are required to report their financial statements by a certified public accountant when in the immediately preceding fiscal year, accruable income tax purposes equal to or greater than MXN is declared. $1,650,490,600, as well as those who, in the immediately preceding fiscal year, had shares placed with investors in the stock market.

Likewise, section VI of article 32-H of the MFTC is added, indicating taxpayers’ obligation to present information on their fiscal situation. This subsection indicates the obligation for taxpayers who are related parties to the subjects established in article 32-A, second paragraph of the MFTC.

Therefore, in addition to those taxpayers under the assumptions of Article 32-H of the MFTC subparagraphs I to IV, who already had an obligation to submit the annual informative declarations of related parties, the taxpayers obliged to issue a fiscal opinion in accordance with the second paragraph of article 32-A of the MFTC, as well as the taxpayers who are related parties of the previously mentioned subjects, will now be required to present the Local and Master File.


Modifications in supporting documentation content

Some technical specifications were included in the MITL for the supporting documentation content:

  • Information regarding the i) functions developed, ii) assets used, and iii) risks faced by the related parties with whom the transactions are carried out must be included.
  • The data and elements of comparability established in article 179 of the MITL must be documented, as well as giving a detail of the adjustments made in terms of this article.
  • Only information on the comparable transaction for the fiscal year subject to analysis must be considered, and two or more fiscal years may be considered when the business cycle cover is multi-year.
  • For the application of any of the transfer pricing methods, the interquartile range must be applied, as opposed to a different range agreed upon within the framework of a friendly procedure established in the treaties to prevent double taxation. 



Within the modifications to the MITL for the fiscal year 2022, Maquila companies in Mexico, to avoid permanent establishment, will only have the option of determining their fiscal profit through the application of the Safe Harbor, that is, the option of submitting an Advance Price Agreement (APA).


Secret comparable

When the taxpayer is in an audit process and in accordance with article 49, section IV of the MFTC, it is stipulated that they may have access to confidential information provided or obtained by independent third parties regarding comparable transactions that affect the competitive position of these third parties.

It is clarified that access to said information is intended only for the taxpayer to correct their tax position, distort facts and omissions, or challenge the resolution determining the tax credit.


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