Last Sunday, September 8, the Federal Executive delivered to the Chamber of Deputies the initiatives to amend, add and repeal several provisions of the Income Tax Law, the Value Added Tax Law, the Production and Services Tax Law and the Federal Tax Code.
In this report, we will focus on the subject of the Federal Revenue Law 2020.
Surcharges (Art. 8°)
- For payments in arrears - 1.47%.
- Payment in installments up to 12 months - 1.26%.
- Payment in installments between 12 and 24 months - 1.53%.
- Payment in installments of more than 24 months and deferred payment in installments 1.82%.
Measures for self-correction (art. 15)
The reduction of fines (50%) for non-compliance with tax obligations for not filing tax returns (e.g. not filing provisional payments), notices or applications, for example before the RFC or with the obligation to keep accounting records and in general those other than those of payment continues. Exceptions continue to be those derived from declaring tax losses in excess contemplated in article 85 section I of the CFF. It would apply if, together with the compliance, the omitted contributions and their accessories are paid.
The 40% reduction of fines derived from electronic reviews related to article 53-B of the CFF is maintained, provided that the tax and its accessories are paid before being notified of the amounts determined by the authority.
Tax Incentives and Exemptions (Art 16, Sections I to VI)
There are no changes compared to 2019 for these
- IEPS for diesel, biodiesel and its blends used exclusively as fuel for machinery - not for vehicles, or used in agricultural or forestry activities or exclusively for public transportation - will be credited against ISR of the year and not applicable to ISR withholdings.
- The land transportation of people or cargo, for the expenses for the use of road infrastructure up to 50% of the total cost of the transportation.
- IEPS on fossil fuels
- Special Mining Tax credit for taxpayers with income of less than $50 million.
- Gas importers - exemption from DTA payment
Tax incentives that were eliminated
- Employees' profit sharing paid that is deducted from the income tax base will no longer be valid.
- Donations that are used for human subsistence - the additional 5% income tax deduction is eliminated.
- The ISR deduction for hiring people with disabilities, which was allowed at 25%, is eliminated.
- They will no longer be able to apply the 25% credit of the tax incentive for film production against provisional payments.
- The option of not granting certificates for income tax or VAT withholdings for payments made by individuals who are entrepreneurs or professionals or who grant the temporary use or enjoyment of real estate is eliminated.
Withholding rate for savings and investment deposits.
It is increased to 1.45% on the capital that continues to be creditable in the annual calculation.
VAT and IEPS for tax incorporation regime (RIF)
The tax incentive continues under certain factors depending on the economic sector as long as they continue to comply with the requirements to remain in the regime.
Do not accumulate support for earthquakes of September 7 and 19, 2017 (art. 24).
Continued availability for those who have their homes in the affected areas as long as they are destined for reconstruction.
Authorized Donors Report (art. 27 sections B and C)
The information on administrative and operating expenses, as well as the net income of each member of the Internal Governance Body or similar directors, must be obtained from the data reported on the SAT's website in the Authorized Donors Transparency Section. In this sense, it is considered that the appropriate date for the presentation of the information in said section is July 31, 2020.
Universal compensation does not return.
The CFF is amended so that it is no longer possible.
