Solidarity and renovation, our vision in the face of COVID-19 in Mexico

The world faces the reality of a pandemic that affects not only health, which is the most important but also profoundly impacts regions and industries trying to maintain commercial operations.

As a firm, the well-being of our collaborators, clients, and business partners is our priority. For this reason, we have created this information center to keep you up-to-date on tax and accounting news that arise due to the impact of this health emergency.

Economic reopening plan and the “New Normalcy”
As we all know, the Government of Mexico announced a National Safe Distance Period [in Spanish: la Jornada Nacional de Sana Distancia], stemming from the COVID-19 epidemic, and consisting on the immediate suspension of all non-essential activities from March 30 to April 30, 20201. The period was extended to May 30, 2020, to mitigate the spreading and transmission of the COVID-19 virus, thereby reducing the burden of the disease, its complications, and deaths from COVID-19.

Rules for foreign digital service providers, and intermediaries
Rules for foreign digital service providers
As we know, derived from the 2020 tax reform, various formal obligations were imposed regarding reporting, withholdings, and tax payments by foreign residents with or without permanent establishment (PE) in Mexico who provide digital services, or who render digital intermediation services in the national territory.

The Tax Administration Service (SAT) , suspends periods and legal terms (advance version)
The Tax Administration Service announced the sixth advance version of the first ruling on the modifications to the Periodic Amendments to the Tax Law [in Spanish: la Resolución Miscelánea Fiscal] for 2020 (RMF 2020), which anticipates the suspension of those periods and legal terms for various procedures for the period covering May 04 to 29, 2020;

Effects of exchange losses in Mexico and impact on transfer pricing for the 2020 fiscal year
perdidas-cambiaras-y-precios-de-transferencia.jpgThe economy and current markets in Mexico and the world have been affected by the Covid-19 health contingency. The medium-and long-term consequences are still uncertain; however, companies will have to have a plan that adapts to new circumstances to ensure the continuity of their businesses.

Start of Phase 3 of COVID-19, and the Mexican Taxpayer Administration (SAT) extends the period for the filing of the annual tax return for individuals
The Under Secretary for Public Health, [in Spanish: el subsecretario de Prevención y Promoción de la Salud], Hugo López-Gatell Ramírez, announced the start of Phase 3 due to the COVID-19 epidemic in Mexico.

Act of God or Force Majeure because of the Coronavirus (COVID–19)
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With respect to fiscal matters, it is possible to question if the measures to suspend the activities that are included in the extraordinary actions issued by the Secretariat of Health may lead us to conclude that there is a provision for an act of God or force majeure.

Risk Control regarding Money Laundering Prevention and Actions from the National Banking and Securities Commission
In virtue of: “the Agreement that establishes the preventive measures that must be implemented regarding the mitigation and control of health risks caused by the SARS-CoV2 (COVID-19) virus” , the Financial Intelligence Unit (FIU) [in Spanish: la Unidad de Inteligencia Financiera] (UIF), together with the Tax Administration Service [in Spanish: el Servicio de Administración Tributaria] (SAT)...

Hygiene and Safety Measures issued by the General Health Council and the Secretariat of Health
The federal government has acknowledged the COVID-19 virus as a serious illness that requires priority attention since the number of cases continue to increase, and it has recommended that the inhabitants of the country remain inside of their homes in order to curb the infection.

Operational planning guidelines and state stimulus packages for confronting COVID-19 published up to March 31, 2020
Faced with the contingency brought on by the worldwide pandemic that is caused by COVID-19 that has direct consequences to the economic sector, it has become essential that the individual states provide subsidies and/or tax benefits to taxpayers during this public health emergency period in order to support them, and to contribute to the recovery of the local economy.

Administrative regulations for compliance with tax obligations on local contributions
As a consequence of the health contingency caused by the coronavirus (COVID-19) and to protect the health and integrity of the general population, governments have granted some administrative regulations with the purpose of (I) mitigating the propagation of the virus mentioned above; (II) easing the compliance with tax obligations, and (III) counteracting the negative effect on the taxpayers' economy.

On March 24, 2020, the Agreement establishing the preventive measures to be implemented for the mitigation and control of the health risks of the disease caused by the SARS CoV2 (COVID-19) virus was published in the Federal Official Gazette.