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Mexico Grants Tax Amnesty During 2013

Mexico
As of 1 January 2013, Mexico is granting a tax amnesty for federal taxes, certain fees and penalties levied on the failure to fulfill tax obligations (different from payment obligations).

The main requirement for the application of the tax amnesty is to pay the remaining portion of the unpaid tax, fee or penalty in one installment. Taxand Mexico takes a look at what the tax amnesty will involve.

The tax amnesty will be in force during 2013 and will apply to the following unpaid taxes, fees or penalties:

  • Unpaid federal taxes, certain fees and penalties on the failure to fulfill tax obligations (different from payment obligations) triggered before 1st January 2007
    • 80% of the updated unpaid taxes, fees or penalties.
    • 100% of surcharges and penalties derived from such unpaid taxes, fees or penalties.
    • 100% of the updated unpaid taxes, fees or penalties if the taxpayer was the subject of a tax audit during 2009, 2010 and 2011 and the tax authorities determined that the taxpayer complied correctly with the tax obligations.
  • Surcharges and penalties derived from certain unpaid fees and unpaid federal taxes (different from those that should have been withheld, transferred or collected), as well as penalties on the failure to fulfill tax obligations (different from payment obligations) triggered between 1st January 2007 and 31st December 2012
    • 100% of the aforementioned fees, taxes and penalties.
  • Penalties levied during 2012 and 2013 on the failure to fulfill tax obligations different from payment obligations (except for penalties for disclosing tax losses in excess)
    • 60% reduction of the aforementioned penalties.
    • The penalties must be paid within 30 days counted as from the date in which the taxpayer is notified.

The tax authorities will issue the rules for the application of the tax amnesty no later than March 2013.


Your Taxand contacts for further queries are:
Manuel Tamez
T. +52 (55) 5201 74 03
E. mtamez@macf.com.mx

Luis A. Monroy
T. +52 (55) 5201 74 66
E. lmonroy@macf.com.mx

Taxand's Take

Considering that the tax amnesty also applies to foreign entities or businesses with an office or a branch in Mexico this may be a good opportunity for companies to get up to date if they have any unpaid taxes or penalties.

Taxand's Take Author

Manuel Tamez
Mexico