January 29, 2021
Mexico's mandatory disclosure tax return site is now available
Taxpayers and tax advisors must use the new electronic form to file the tax return for disclosing reportable arrangements. With February 15, 2021 quickly approaching, taxpayers and tax advisors should determine whether they have all of the information required for the filing.
On January 26, 2021, the Mexican tax authorities released the electronic form on their website for tax advisors and taxpayers to upload the informative tax return that is required for disclosing reportable arrangements. The format and process for filing the return was highly anticipated considering the February 15, 2021 due date. For more information on the mandatory disclosure rules (MDRs), see Tax Alerts 2020-0625 and 2020-2594.
To access the microsite to disclose reportable arrangements, taxpayers or tax advisors must have a tax identification number (RFC per its acronym in Spanish) and electronic signature (E-firma) or tax password.
Taxpayers or tax advisors must complete the electronic form and attach certain information as indicated in the regulations issued in 2020. They must include, among other things, the following information with the electronic form:
As can be seen, the electronic informative tax return on reportable arrangements in Mexico requires a significant amount of information that tax advisors and taxpayers must produce to comply with the minimum requested information.
In accordance with the MDR provisions, once the tax advisor or taxpayer files the informative return on a reportable arrangement, the Mexican tax authorities will generate an identification number for the disclosed arrangement. Taxpayers that enter into the disclosed arrangement must include the identification number for the disclosed arrangement in their annual tax returns.
The MDR provisions also authorize the Mexican tax authorities to request additional information on disclosed arrangements. Upon request, taxpayers will have 30 business days to provide the additional documentation or file a statement signed under oath stating that the additional information requested is not available. If the additional information is not provided, filed incompletely or is provided after the due date, the corresponding penalties will apply.
The microsite for disclosing reportable arrangements still needs to incorporate other filing obligations in terms of the Mexico MDR, such as the non-reportable certificate and the annual informative tax return to be completed by tax advisors.