We now have QMA 2020-2024 for Maquiladoras with APA
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We now have QMA 2020-2024 for Maquiladoras with APA
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The Mexican Tax Authorities (SAT) published the Renewal Agreement with the IRS concerning the Qualified Maquiladora Approach (QMA) for fiscal years 2020 to 2024

On July 23, SAT issued this Renewal Agreement with the IRS which extends the application of the QMA for fiscal years 2020 to 2024.  Up until 2021, maquiladora companies could request a particular ruling, an Advanced Pricing Agreement (APA), to determine the pricing or remuneration methodology for services provided to related parties abroad.   This APA covered fiscal years 2020 to 2024.  Going forward, preference will be given to the application of the QMA

The renewal applies only to maquiladoras that had previously requested, obtained, and properly implemented a resolution corresponding to the 2019 fiscal year and earlier years when the QMA was applicable, or those that have complied with Article 182, first paragraph, of the Income Tax Law.

The Renewal Agreement maintains the core elements of the QMA's transfer pricing framework that were in effect for the 2019 fiscal year and prior, since the authorities that have jurisdiction decided to continue to generate results that were consistent with the arm’s length principle.

Additionally, the renewal seeks to address the backlog of unilateral requests issued by SAT under Article 34-A of the Federal Tax Code, specifically relating to maquiladoras.

Consequently, we anticipate the acknowledgment of pending particular rulings for these fiscal years. 

We will stay vigilant regarding any instructions from the tax authorities concerning the filing of APAs elated to the application of the methodology, as well as the filing of amended annual tax returns.  When necessary, we will also provide follow-up to adjustments to the maquiladora’s taxable income resulting from this methodology, which may lead to the following: 

• Additional Income Tax payments, including inflation adjustments and surcharges,

• Adjustments to the taxable income and tax profit margin, if applicable.

• An increase in taxable income leading to additional Profit Sharing to Employees (PTU), and guidance on how the workers should be compensated.

We invite you to check out the following link in order to learn more about this publication:

http://m.sat.gob.mx/EmpresasPrestanServiciosMaquila/2024.html

To know more about the Maquila regime in Mexico, check out our webinar “Charting the Tax Future Maquiladoras in Mexico 2025”:

https://www.youtube.com/

 

JA DEL RÍO offer a wide array of specialized consulting services to assist you with these and other matters, in order to ensure that your new project complies with the applicable characteristics  contained in this decree.

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

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