Fiscal Reforms 2021.
On November 5, 2020, the Congress of the Union approved several changes in tax provisions, among the most relevant Fiscal Reforms 2021 are the following:
Tax Reforms 2021 in the Income Tax Law (ISR).
1. Moral Persons for Non-Profit Purposes and Authorized Donors.
- They will lose their authorization to donate when they obtain most of their income (more than 50 per cent) from activities unrelated to their social object.
- The following shall be grounds for revocation of the authorization:
- When the asset is used for purposes other than the social purpose for which the authorization was obtained.
- Do not issue tax vouchers.
- The authorization will be lost by all those organizations and trusts, in which one of the legal representatives, members or associates, as well as any member of the board of directors of the company are part of a company whose authorization to receive donations for the performance of non-existent operations has been revoked for a period of 5 years.
- The donor or trust is listed in 69-B.
- By 1 July 2021, the following approved associations or companies shall continue to be taxed under Title III “of the regime for moral persons for non-profit purposes”, provided that they are authorised to receive deductible donations, otherwise, they shall be taxed in accordance with Title II “Of legal persons”.
- Natural persons earning income assimilated to wages may not be taxed under this scheme when their total income exceeds 75 million pesos.
The withholding tax on income earned by natural persons shall be as follows:
- Provision of ground passenger transport and goods delivery services: 2.1 per cent.
b. Hosting services: 4%.
c. Disposal of goods and provision of services: 1 %.
- Temporary blocking of internet access to digital platforms. Foreign residents without establishment who provide digital services that omit for three consecutive months their tax obligations, who fail to comply with the obligation to register with the RFC, shall be subject to temporary blocking of access to the Internet service by concessionaires of a public telecommunications network.
Fiscal Reforms 2021 in the Federal Fiscal Code (CFF).
- Certificates shall be null and void if it is found that the taxpayer issuing tax vouchers is on the list of 69-B or 69-B Bis.
- Where the taxpayer follows the procedure for remedying the irregularities identified, the authority shall have 10 working days in which to issue its decision.
- In the case of temporary restriction of digital stamp certificates, a period of 40 days is set for the taxpayer to submit the request for clarification which he considers applicable, otherwise, the tax authorities shall remove the digital stamp certificates.
- No refund of balances in favour of taxpayers who are not located at their tax domicile.
- To retain accounting media for a longer period of time for certain accounts, such as transactions involving double taxation treaties, capital increases, valuations, mergers, divisions and distribution of dividends.
For Bandala | Díaz | García it is of the utmost importance to keep our clients informed and avoid contingencies.
If you have any questions about this or other topics in accounting, we invite you to come to us to provide professional and personalized attention at all times.
The main purpose of this information is to provide guidance to the general public. It does not replace the provisions of applicable law. Nor does it replace the specialized legal advice or consultancy that can be offered by any of the lawyers and/or accountants of Bandala | Díaz | García