On December 28 and 31, the Federal Revenue Law for 2019 and the Tax Stimulus Decree for the Northern Border Region were published in the DOF, respectively.
As previously announced, there were no substantive changes in the tax legislation, there are no new taxes, rates or tariffs were not changed, nor were the provisions related to income tax withholdings for corporations, which had been proposed to reduce the problem of trafficking in apocryphal invoices, incorporated.
Comments
NO AMNESTY
No amnesty scheme or regularization of tax obligations was approved.
END OF UNIVERSAL COMPENSATION
The possibility of carrying out the "Universal" compensation, which allowed the use of balances in favor of certain federal taxes against amounts payable of other taxes, was eliminated. This is what the media has called the "Ley Gandalla", since payments are required to be made, even though the Federal Treasury is in debt with the taxpayer.
VAT may only be credited against future VAT payable, or in its absence, a full refund may be requested.
It was necessary to wait for the following publications to know through the Miscelánea Fiscal the treatment of the remainders or balances in favor that will result at the close of 2018 and today, January 7, the draft of the Sixth Resolution of Amendments to the Miscelaneous Tax Resolution for 2018 was published, which includes rule 2.3.19 with which the following clarifications are made:
Balances in favor generated before 2019 can continue to be offset against any tax (except withholdings) with the condition of filing a notice of offset in ALL CASES (Rule 2.3.13, which allowed not filing it, does not apply).
WITHHOLDING TAX ON INTEREST
In many cases, bank savings did not generate interest in real terms, and notwithstanding this, the bank was obliged to withhold income tax on the amount of the capital, resulting in tax credits. Unfortunately, this balance in favor can only be applied against interest earnings generated in the future, so it is feasible that they may not be applicable when there are scenarios of low growth economy and low interest rates for savers. This year, the withholding rate more than doubled to 1.04% of the investment.
SURCHARGE RATES (unchanged)
- Surcharges 0.98% on unpaid balances
- Surcharges for late payment 1.47%.
- For installments of 1- 12 months 1.26%.
- For installments of 12 to 24 months 1.53%.
- For installments of more than 24 months 1.82% 1.82% For installments of more than 24 months
FISCAL STIMULI
Those who have been coming since at least 2018 continue.
- For the donation of basic goods for subsistence and health
- Decrease in PTU paid in provisional payments
- Additional deduction for hiring people with disabilities
- That of film production with the limitation that it cannot be applied with other tax treatments that grant them tax benefits.
- It is added as an authorized purpose for donations the work of rescue and reconstruction in case of natural disasters.
IN THE AREA OF EPPS
They are maintained, but the existing tax against ISR of the year for the acquisition of Diesel or Biodiesel for final consumption for the transportation of persons or merchandise as well as tourism is modified. The modification consists in that it is no longer allowed to be applied against the provisional payments of such tax.
REGULARIZATION OF ANTI-MONEY LAUNDERING LAW
The Fourteenth Transitory Article of the LIF establishes a period of 60 days for the SAT to publish the rules to implement a regularization in the matter of the law to prevent operations of illicit origin, in particular in relation to the obligations of the persons who carry out vulnerable operations and who have not complied with their obligations for the period from 2013 to 2018. Basically, the benefit will consist of not imposing fines or condoning the fines
fines for not complying with their obligations at the time.
FISCAL STIMULUS DECREE FOR THE NORTHERN BORDER REGION
The purpose is to improve the competitiveness of the benefited region, retain the Mexican consumer and thus improve the regional domestic economy, which will raise income by increasing economic activity, generate jobs, and detonate greater welfare.
The municipalities participating in the stimulus are the following:
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PEOPLE BENEFITED:
- Title II legal entities
- Individuals engaged in business activities (other income does not qualify)
- Entities that apply the incentive to accrue and deduct on the basis of collected and paid.
The ISR benefits consist of: Applying a tax credit that can be applied against the annual tax and provisional payments, which will result in paying only 2/3 of the tax (resulting in a 20% rate) for corporations, and for individuals, it will depend on the result of the rate.
Only applies to those who obtained at least 90.00% of the total income in the border region in the previous fiscal year. The incentive will be proportional to the percentage of income obtained in said region.
The requirements are as follows:
- By March 31 at the latest, register in the "Stimulus for the Northern Border Region Beneficiaries List".
- Proof of residence in the region for at least the last 18 months.
- Those who are starting operations or have less time, will be able to:
- Prove that they have the economic capacity, assets and facilities to carry out their activities in the region.
- that use new or used assets that have not been transferred by related parties.
- They estimate that at least 90% of their revenues will be generated in the region.
- To have a tax mailbox, positive opinion and FIEL.
- Collaborate with the real time verification program.
The following month, SAT will issue a resolution, which, if positive, will register the taxpayer in the taxpayer registry.
If the resolution is not issued, a fictitious refusal shall be presumed.
If the SAT requires more information to resolve, it may, within 5 days after the request, request information, and the taxpayer also has 5 days to comply with the request. If the taxpayer does not do so, the request is considered abandoned.
The authorization is only valid for the fiscal year requested.
VAT STIMULUS IN NORTHERN BORDER REGION
It consists of a 50% direct credit to the tax rate, which results from the general rate of 16% in 8%. It does not apply to the importation of goods and services.
It also does not apply in the following cases:
- Disposal of real estate and intangible assets.
- Digital content supply
- Taxpayers published by article 69 or 69-B
- Companies that invoice or deduct simulated operations (EFOS or EDOS).
We hope you find this summary useful and look forward to hearing from you.
