Administrative benefits for companies with IMMEX program under shelter modality
Last December 23rd, 2015, was published in the Federal Official Gazette the 2016 Mexican Tax Regulations, which through its rule 3.20.6 provides an option for foreign residents that perform maquila operations through companies with IMMEX program under shelter modality, to continue operating in Mexico for an additional 4 years period besides the period established in the Mexican Income Tax Law (MITL), provided to the fulfillment of certain requirements and conditions, such as:
1. Residents abroad:
- File through the shelter company, a notice through which it is informed that they elect the option referred to in this regulation for a maximum period of 4 years, starting once the 4 years period established in the MITL is concluded.
- The jurisdiction to which the resident abroad belongs, should have in force a treaty to avoid double taxation with Mexico containing a broad exchange of information clause or a broad exchange of information agreement and treaty requirements are also met.
- Request before Mexican tax authorities a taxpayer identification number (RFC by its acronym in Spanish) without any tax liability in Mexico.
2. Companies with IMMEX program under shelter modality must comply during the additional 4 years period with the following:
- Identify every transaction and determine the tax profit corresponding to each of the residents abroad, according to safe harbor rule, applying the 30% tax rate.
- Issue individual certificate of income tax paid on behalf of each of its clients residing abroad.
- File correctly and on time the information required by the tax authorities through the informative return for maquiladoras (DIEMSE for its acronym in Spanish) in regard to sheltered companies.
- Make available to the tax authorities all documents proving that the information on companies resident abroad is properly identified individually under the accounting books of the shelter company, during the period of five years established in the tax provisions; as well as to allow the review from the tax authorities when requested, in order to verify the correct tax calculation and payment for each foreign resident.
- Maintain on each tax year with a certificate issued by an international firm, attesting in detail the amount of costs and expenses incurred by each customer residing abroad in the maquila operation along with the assets and inventory value owned by residents abroad.
- Filing on behalf of customers resident abroad, within the deadlines set forth in the MITL, the monthly income tax returns and annual tax return payments corresponding to each of its customers.
- Apply and obtain VAT and IEPS certification under the highest modality according to its seniority.
- Obtain the company’s positive opinion on tax compliance and make it public.
- Not be listed under tax authority (SAT) database as unfulfilled taxpayer and whom have issued vouchers for presumably nonexistent operations.
- File the monthly informative return regarding the value of the inventory and machinery and equipment owned by each of its clients resident abroad, as well as the amount of costs and expenses incurred in the maquila operation (individually).
- Engage in the real time tax system verification program in charge of the corresponding tax authorities (AGGC for its acronym in Spanish).
It is important to mention that the shelter companies should explicitly express their willingness to assume joint liability in the tax calculation and its payment on behalf of the resident abroad.
It should be noted that this benefit could not be exercised by residents abroad who had or have triggered a permanent establishment in Mexico or by those who have previously been housed by another shelter company and had exercised this option.
It is clarified that in no case should be transferred to the shelter company any, machinery, equipment, tools, dies and molds or any other similar fixed assets and inventories owned by its foreign resident clients or related parties abroad, before or during the period of 4 years period in which such benefit is applied.
Such option is applicable if the shelter company only obtains income from the rendering of maquila services to residents abroad; therefore, in no case income from the sale or distribution of finished goods in Mexico will be allowed.
Grant Thornton Mexico through its Tax Division is at your disposal for any questions or additional information required.
In case you need further information, please contact us at the following emails:
Guadalajara Office
Mario.Rizo@mx.gt.com T (52 33) 3817 4480
Daniel.Santiago@mx.gt.com T (52 33) 3817 4480
Mexico Office
Santos.Briz@mx.gt.com T (52 55) 5424 6500
Pedro.Zugarramurdi@mx.gt.com T (52 55) 5424 6500
Monterrey Office
Santos.Briz@mx.gt.com T (52 55) 5424 6500
Ricardo.Suarez@mx.gt.com Precios de Transferencia T (52 55) 5424 6500
Puerto Vallarta Office
Mario.Rizo@mx.gt.com T (52 322) 224 1297
Querétaro Office
Carlos.A.Hernandez@mx.gt.com T (52 442) 229 1543
Tijuana Office
Luis.F.Acosta@mx.gt.com T (664)207-0050
