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Mexico: Relevant transactions should be reported to the Mexican tax authorities

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David Cuellar


Manuel Reyes

The 2014 Mexican tax reform covers a broad range of changes, including the addition of article 31-A to the Federal Fiscal Code. Under this article, taxpayers are required to submit to the tax authorities information pertaining to relevant transactions within 30 working days of the transaction date through the official format approved for these purposes by the Mexican tax authorities. However, the aforementioned article does not provide further information as to which transactions should be considered as relevant, nor on the specific format that should be filed.

In this regard, the Fifth Amendment to the Mexican Miscellaneous Resolution for 2014, as published in the Official Gazette on October 16 2014, added Rule I.2.8.1.14 to the aforementioned Resolution. Said rule establishes that the obligation to report relevant transactions shall be deemed as fulfilled with the filing of Form 76, Information Return Regarding Relevant Transactions, on a monthly basis and per the instructions set forth in Administrative Guidelines 169/CFF. The rule further states that transactions undertaken during the first trimester of 2014 shall be reported no later than October 30 2014, with subsequent deadlines in the last days of November and December 2014, as well as in January 2015, for the remaining trimesters of 2014.

On October 23 2014 the Mexican tax authorities released Form 76, which must be filed electronically by taxpayers. Form 76 classifies 36 different relevant transactions into five categories:

  • Part A deals with financing transactions relating to derivatives;

  • Part B refers to transfer pricing adjustments and the use of profit split method(s) when determining royalties;

  • Part C deals with changes in the capital structure or tax residency (direct or indirect) of a company, primarily related to the sale of shares, the migration of tax residence, or dual tax residency;

  • Part D requires the taxpayer to provide information regarding restructurings and reorganisations, such as the division of certain activities, concentration of certain activities, maquiladora conversions, and so on; and

  • Part E deals with other relevant information, such as the sale of an intangible asset, the sale of financial assets, the transfer of goods through mergers or demergers, financing operations in connection with which interest is due one year after its accrual, among other categories.

On October 29 2014, the Mexican tax authorities issued press bulletin No. 140/2014, which grants an extension on the original October 30 2014 deadline for reporting relevant transactions carried out during the first trimester of 2014. Now, all relevant transactions undertaken during calendar year 2014 shall be reported no later than January 31 2015. As of that date, and going forward, relevant transactions shall be reported on a monthly basis.

Taxpayers submitting incomplete or erroneous information through Form 76 will have 30 working days from the date a notice from the tax authorities is received to complete or amend the information submitted. Failure to comply with such term could result in the assessment of penalties.

David Cuellar (david.cuellar@,mx.pwc.com) and Manuel Reyes (manuel.reyes.arvizu@mx.pwc.com)

PwC Mexico

Tel: +52 55 5263 5816

Fax: +52 55 5263 6010

Website: www.pwc.com

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