Effective as of the 1st of January 2022, Mexican tax legislation provides for new obligations binding: (i) Mexican companies, (ii) all parties to trusts (fideicomisos); (iii) all parties and members of other legal arrangements; (iv) professionals such as notaries, public brokers and other persons participating in the incorporation of companies, in the creation of trusts or in the creation of other legal arrangements; and (v) financial entities and all entities deemed to form part of the financial system for purposes of the Income Tax Law, (1) to gather and maintain information to identify Beneficial Controllers; (2) to adopt measures to confirm and validate the Beneficial Controllers’ identity; and (3) to, upon request, disclose this information to the tax authorities.
The information and documentation that the Mexican tax legislation mandates to gather, maintain, confirm and validate comprises long lists of elements, details, personal data, requirements and procedures.
In summary, the term Beneficial Controller means the natural person or group of natural persons who ultimately obtain the benefit derived from their participation, or own or control a Mexican company, trust or other legal arrangement.
No exceptions or considerations are made or granted for multinational corporate groups, listed companies, etc.
The tax, administrative and compliance burdens and risks that result from these new tax requirements, additionally, impact holding companies, corporate groups, and ultimate Beneficial Controllers of Mexican companies.
Mexican companies and other legal arrangements are bound: (1) to establish and document new internal procedures and mechanisms to gather, keep, update and disclose the information comprising these new tax requirements; and (2) to gather sensitive personal data from executives and Beneficial Controllers or owners.
The information comprising these new tax requirements, now forms part of the taxpayers accounting records for all legal purposes.
These new tax requirements must be approached from an integral tax, corporate and general compliance (including for personal data protection) perspective.
As we recommend taking action immediately, please do not hesitate to contact us to determine the best form in which our Firm can be of assistance to you.
Compliance / Tax
Alejandro Montes
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Arturo Bañuelos
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Oscar Bensojo
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Enrique Marcos
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Javier Ogarrio
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César Ochoa
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Fernando Holguín
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Felipe Mendoza
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Edmundo Hernández
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Franco Herrera
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