Dear clients and friends,

On December 30, 2024, the Ministry of Finance and Public Credit published in the Official Gazette of the Federation the Miscellaneous Tax Resolution for the 2025 tax year, along with its Exhibits 1, 3, 5, 6, 8, 15, 19, and 27 (the “RMF para 2025”) was published in the Official Gazette of Mexico City.

As a result of the aforementioned publication, we present a list the most relevant changes:

• 2.1.29. Mutual Agreement Procedure provided in Double-Taxation Agreements

New provisions have been introduced regarding the inadmissibility of a request for a mutual agreement procedure.

• 2.2.4. Procedure to invalidate the Digital Seal Certificate of taxpayers or restrict the use of the e-signature certificate or the mechanism used by individuals for the issuance of the Digital Tax Receipt, and procedure to report the correction of their tax status and rectify the identified irregularities

It is acknowledged that taxpayers who have received an unfavorable resolution regarding the restriction or cancellation of their Digital Seal Certificates, have the right to submit the information and documentation that proves to the relevant authority that they have rectified the identified irregularities or corrected their tax status, thereby enabling them to request a new certificate.

• 2.2.15. Procedure to temporarily restrict the use of the Digital Seal Certificate for the issuance of Digital Tax Receipts and to rectify the irregularity or disprove the identified cause

Regarding the restriction or cancellation of their Digital Seal Certificate, taxpayers who have received a resolution stating that their request for a favorable clarification is considered not submitted due to failure to provide the required data, information, or documentation will retain the right to submit a new request, provided that it is done within the 40 business days established in the second paragraph of Article 17-H Bis of the Federal Tax Code (“FTC”).

• 2.3.11. Refund of VAT credits for taxpayers who produce and distribute products intended for human and animal consumption.

The procedure for requesting Value Added Tax (“VAT”) refunds for taxpayers who produce or distribute food for humans and animals at a 0% rate has been updated. The previous procedure form for requesting refunds for these taxpayers is replaced by the procedure form “10/CFF Request for VAT Refunds for taxpayers in the agricultural sector, as well as those generated by fixed asset investment projects, who produce and supply products intended for food, patent medicine, and during the pre-operational period”.

• 2.4.11. Registration in the Federal Taxpayer Registry

Regarding registration in the Federal Taxpayer Registry (“FTR”), Sections IX and X were modified, and a new Section XII was added, which includes the registration in the FTR of Mexicans living abroad without tax obligations in Mexico; individuals who only receive income from salaries and, in general, from the provision of subordinated personal services; as well as individuals without tax obligations.

• 2.9.12. Applicable procedures for identifying foreign accounts or reportable accounts among financial accounts and for submitting information to the tax authorities

Financial institutions, whether residents of Mexico or foreign residents with a branch in Mexico, now have until August 31 of the following tax year to disclose reportable accounts in accordance with Article 32-B Bis, Sections IV and V, of the FTC and Rule 3.5.8, last paragraph. This extends the previous deadline, which only allowed compliance until August 31 of the same tax year.

• 2.12.10. Second Appraisal Practice

The tax authority, in cases where applicable, is authorized to request the performance of a second appraisal. Following the modification of Rule 2.12.10, the conditions under which a second appraisal can be conducted have been updated.

Now, in addition to the tax authority, the taxpayer can also request the performance of a second appraisal if, as a result of a physical inspection, the asset shows a value that is inconsistent with its characteristics, location, or useful life.

• 2.14.6. Conditions under which the reduction of penalties does not apply according to Article 74 of the FTC

The following sections have been removed from the list of conditions under which the reduction provided in Article 74 of the FTC will not apply:

• “VII. In the case of penalties where the taxpayer has requested the suspension of the administrative enforcement procedure, the reduction has been authorized according to Article 74 of the FTC, and the non-reduced portion has not been paid within the granted period.”
• "VIII. Regarding penalties for which the tax authority has authorized a reduction according to Article 74 of the FTC, and this reduction was not effective because the taxpayer did not pay the taxes and their accessories due, and, if applicable, the non-reduced portion of the penalty, within the granted period.”

For the benefit of taxpayers, the reduction of penalties can be requested in accordance with Article 74 of the FTC if any of the aforementioned conditions are met.

• 2.14.7. Conditions for the penalty reduction to be effective under Article 74 of the FTC

The conditions for the penalty reduction resulting from the exercise of audit powers have been updated. Now, the taxpayer is required to pay the corresponding taxes, their accessories, and, if applicable, the non-reduced portion of the penalty, within ten days after the notification of the resolution granting the benefit.

Previously, the payment deadline was three days when audit powers were being exercised, or ten days for penalties determined by resolution.

• 3.13.19. Notice to choose the Simplified Trust Regime

The rule requiring individuals engaged in business activities, professional services, or granting the temporary use or enjoyment of goods to submit the notice indicated in the procedure form “71/CFF Notice of Update of Economic Activities and Obligations” when electing to be taxed under the Simplified Trust Regime has been removed.

• 3.21.2.15. Real-Time Monitoring Program for Energy and Infrastructure Investment Trusts

To ensure REITs (known as FIBRAs in Spanish) comply with the obligation to participate in the real-time monitoring program, a new procedure form has been introduced under this rule, titled “167/ISR Report for the Real-Time Monitoring Program for Energy and Infrastructure Investment Trusts”.

This procedure enables REITs to demonstrate their compliance with the obligation to submit the information required by the Tax Administration Service, thus streamlining the monitoring process and ensuring that REITs follow the applicable tax regulations.

• 4.1.12. Ease of VAT withholding and payment on interest payments resulting from financing operations conducted through Crowdfunding Institutions

This rule has been added, which specifies that Crowdfunding Institutions (Instituciones De Financiamiento Colectivo in terms of the Federal Law for the Prevention and Identification of Operations with Illegally-Sourced Funds) will substitute legal entities in fulfilling the obligations of withholding and paying VAT.

Therefore, these institutions must apply the rate established in Article 1 of the Value Added Tax Law (the “VATL”) on the nominal value of the accrued interest. The VAT withheld by these institutions will be creditable to the legal entity.

• 44/ISR/NV Deduction of expenses for services rendered. Expenses are not deductible if it cannot be proven that the service was actually provided
  
  A non-binding criterion on the deduction of expenses has been published to clarify that the following tax practices are incorrect:
  • Those who deduct expenses for services rendered for the purposes of determining Income Tax, when there is no evidence to prove that the service was actually received, regardless of having a tax receipt to support the transaction.
  • Those who advise, counsel, provide services, or participate in carrying out or implementing the aforementioned practice.

• 12/IVA/NV Acquisition of goods in national territory owned by a resident abroad. Withholding of Value Added Tax

The criterion establishes that individuals and legal entities in Mexico must withhold VAT from the seller when acquiring goods in the country from a foreign resident without a permanent establishment in Mexico, provided they engage in activities subject to VAT under the VATL. However, if they are only obligated to pay VAT on the importation of goods and not on other taxable activities under Article 1 of the VATL, they are not obligated to make such withholding.

Should you have any questions or require advice on this matter, our team of experts is available at the following email:

Paul Kavanagh: paul@k-g.com.mx

Miguel Alonso: malonso@k-g.com.mx

Luis Kanchi: Lkanchi@k-g.com.mx