Our Magna Carta establishes the obligations we have as Mexicans to contribute to the public expense of the Federation, the States of the Republic, Mexico City and the different Municipalities in which the individual resides, granting us the benefit that such payment of obligations be proportional and equitable, in accordance with the secondary laws issued for such purpose. Likewise, it grants the Federation the exclusive power to tax goods that are imported or exported, temporarily or definitively, as well as to regulate their permanence and circulation in national territory. Tax Compliance
In relation to the above, the Foreign Trade Law defines tariffs as the quotas of the general export and import fees, which may be:
-
- Ad valorem, when the value of the merchandise is expressed as a percentage.
- Specific, they are expressed in monetary terms per unit of measurement.
- Mixed, which is a combination of the two.
This law states that the countervailing duties will be “taxes for public services” in accordance with the Federal Fiscal Code, which defines them in general terms, that “taxes for public services”” are the revenues received by the Mexican State for public law functions and which are not considered as taxes. Tax Compliance
The Customs Law states that tariff deferral programs shall be understood as temporary import regimes for manufacturing, transformation or repair in maquila or export programs, for which it establishes that maquiladoras and companies with export programs authorized by the Ministry of Economy may temporarily import goods to be returned abroad after having been destined to a manufacturing, transformation or repair process, as well as goods to be returned in the same state, under the terms of the authorized program.
In addition, temporary imports will not be subject to foreign trade taxes and will comply with the obligations regarding non-tariff regulations and restrictions and, if applicable, countervailing duties. In connection with the above, the Decree for the Promotion of the Manufacturing, Maquiladora and Export Services Industry (IMMEX Decree) was issued, published in the Official Gazette of the Federation on November 1, 2006 (which has undergone modifications and amendments).
This decree created a program that for practical purposes is intended to equalize the conditions of Mexican companies with foreign competitors, in order to make possible the successful placement of the various goods offered on the global platform, with the purpose of bringing them to Mexican territory for processing, transformation and/or repair of goods of foreign origin imported temporarily into Mexican territory and subsequently returning them through exportation.
Under this program, companies are allowed to temporarily import inputs or goods that, if applicable, would be subject to an industrial or service process, that is, for the purpose of being used for the manufacturing, transformation and/or repair of goods that have been imported temporarily from abroad, without being subject to the payment of the general import tax. In order to be eligible for the benefits granted by the IMMEX program, it is necessary that they are legal entities that have established in Mexican territory the main administration of their business or, if applicable, the headquarters of their effective management, that are taxed in accordance with Title II of the Income Tax Law, and, obviously, meet the requirements established in the IMMEX Decree.
Tax Compliance
FORM OF TAXATION
FORM OF TAXATIONWithin its regulatory framework is the Value Added Tax Law, which establishes the obligation of individuals and legal entities to pay VAT, in the event that they carry out acts or activities consisting of the importation of goods or services in Mexican territory, only in the event that these are creditable. In the case of imports, only the amount of the value added tax that has been effectively paid will be considered, in the proportion in which such expenditures are deductible, and must be stated separately in the customs declaration issued in relation to the merchandise that enters national territory.
Now, the temporary importation of goods consists of their introduction into Mexican territory for manufacturing, transformation or repair in maquila or export programs, to which the VAT exemption referred to in article 25, section I, of the LIVA will not be applicable. For this reason, with respect to the temporary importation for manufacturing, transformation or repair in a bonded warehouse, they indicate that the payment of the tax will be carried out at the latest at the time the customs declaration is filed.
However, article 28-A, of the law in question, establishes that the benefit of the application of a tax credit in an amount equivalent to 100% of the value added tax to be paid on importation will be granted, provided that the taxpayer has the certification granted by the Tax Administration Service (Servicio de Administración Tributaria). Likewise, the normative precept mentioned in the previous paragraph, indicates that in the event that it is decided to opt for the option of not having the certification, it will be possible to have the benefit of not paying the value added tax, as long as they guarantee the fiscal interest through a bond granted by the corresponding institution, in the terms established by numeral 4.3.2. of the General Rules of Foreign Trade in force.
Finally, for the export of goods, the 0% rate will apply and the tax may be credited as long as the goods are returned to their country of origin.
Tax Compliance
SPECIAL TAX ON PRODUCTION AND SERVICES
The Special Tax on Production and Services Law establishes the obligation of individuals and corporations to pay at the time of importation for the following merchandise:
Alcoholic beverages and beer.
-
- Alcohol, denatured alcohol and uncrystallizable syrups.
- Tobaccos Products.
- Automotive fuels.
- Energy drinks, as well as concentrates, powders and syrups to prepare them.
- Flavored beverages; concentrates, powders, syrups, essences or flavor extracts, which when diluted allow obtaining flavored beverages; and syrups or concentrates to prepare them, which are sold in open containers.
- Fossil Fuels.
- Pesticides.
- Non-staple foods.
Likewise, such law establishes that the listed goods will not be subject to the tax, provided that they are not changed to definitive importation.
Tax Compliance
ADDITIONAL CONTRIBUTIONS
By incorporating as a legal entity, the maquiladora is subject to compliance with the obligations stipulated by Mexican law, so it must be up to date with IMSS and INFONAVIT declarations and payments, and payment of payroll taxes, as well as the issuance of Payroll CFDI’s for salaries paid and must comply with the obligation to report and pay income tax withholdings for wages and salaries.
Tax Compliance
This document does not constitute a particular consultation, and therefore, Asesores Stratego SC, is not responsible for the interpretation
or application given to it. The total or partial reproduction of this publication, by any means or procedure, is prohibited without the prior, express and written authorization of the author. Any form of unauthorized use will be prosecuted in accordance with the provisions of the Federal Copyright Law. We are at your service to answer your questions or comments, for more information on this subject and our services, please contact us at: info@asesores-stratego.com