©2010 galaz, yamazaki, ruiz urquiza, s.c. “highlights before filing the mexican annual tax...
TRANSCRIPT
©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
“HIGHLIGHTS BEFORE FILING THE MEXICAN ANNUAL TAX RETURN”
Héctor Silva
Meeting - Breakfast
March 17, 2010
©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
Computation of SH and tax credit requires the following information from the US.
- Machinery of equipment.- Value and acquisition date.
-Inventory.- Monthly balances of inventories kept in México.
2
COMPUTATION OF S. H. AND TAX CREDIT
©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.3
S. H. NOTIFICATION
- File a notice with the Mexico City tax authorities.
- Pending to confirm if the electronic return is going to be mandatory; this will include companies electing the transfer pricing option.
©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
INFORMATION FOR IMPORT/EXPORT OPERATIONS
4
- Since 2008 this information is requested in the annual tax return. Necessary to obtain official customs database ("glosa" from SAT) to compare with own records.
- 2009 is not mandatory to report in the annual tax return.
- 2009 is mandatory for those filing an tax audit report.
©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
OFFSETTING OF INCOME TAX VS. FLAT TAX
- During the year estimated income tax payments can be credited against monthly Flat Tax.
- At year end, estimated income tax payment is offset (compensation) vs. Flat Tax.
- Compensation notice must be filed within 5-18 days (upon the letter of the tax ID number).
5
©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C.
INTERCOMPANY ACCOUNT BALANCE
Intercompay balances in excess of a reasonable period 80-100 day may impact tax calculations.
A/P.- More likely, will require a transfer pricing adjustment to report a reasonable mark up.
Thin capitalization, when intercompany debt exceeds 3/1 equity, exchange losses, that are deemed as interest, may be limited for deduction.
A/R.- May require a transfer pricing adjustment.May be considered as a deemed dividend for US tax purposes (956 IRS
tax code).
5
