Article 27 of the Federal Tax Code («CFF» for its acronym in Spanish) was amended pursuant to the tax reform that entered into effect on January 1, 2020, which requires companies incorporating or modifying their partners or shareholders to file a notice before the Tax Administration Service (“SAT” for its acronym in Spanish).
Rule 2.4.19. of the Tax Administrative Rules for 2020 («RMF» for its acronym in Spanish) provides that companies shall report to the SAT the name of the partner or shareholder and its Mexican taxpayers identification number («RFC» for its acronym in Spanish) within 30 days after its incorporation or modification.
Transitory Article 46 of the RMF requires filing a structure corporation notice for companies whose partners or shareholders data is not updated before SAT no later than June 30, 2020.
This Transitory Article might be interpreted as a requisite for companies to report any modification to their corporate structure, even before the tax reform entered into effect.
Regardless of any possible retroactive effect or unconstitutionality of this provision, we recommend submitting a notice regarding any partner/shareholder modifications made in 2020 and analyzing the convenience of filing a notice of prior modifications.
Please bear in mind that failure to file the notice may result in tax fines ranging from $4,200.00 MXN to $8,390.00 MXN, and a possible Digital Seal Certificate restriction required for issuing tax invoices.
*The purpose of this communication is not to advise or counsel on any situation nor is intended to omit in whole or in part the payment or withholding of any contribution of Mexican tax provisions nor should it be used for such purposes.
For further information in connection with this matter, please contact the partner in charge of your matters or one of the attorneys mentioned as follows:
Mexico City Office
Mr. Mariano Calderón V. (Partner)
Tel.:+52 55 5279.5400
Mr. César Cruz A. (Partner)
Tel.:+52 81 8133.6000
Mr. José Ramón Ayala A. (Partner)
Tel.:+52 442 290.0290