Amendments To Outsourcing's Tax Treatment - Tax - Mondaq Mexico - Mondaq Business Briefing - Books and Journals - VLEX 816755853

Amendments To Outsourcing's Tax Treatment

Author:Abel Francisco Mejía Cosenza, Guillermo Villaseñor Tadeo, José Ángel Eseverri Ahuja, Luis Antonio González, Ricardo Leon-Santacruz and Mariana Eguiarte-Morett
Profession:Sanchez Devanny
 
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In order to fulfill the tax obligations regarding outsourced services, in order to deduct the expenses for income tax purposes and credit the value added tax, the contracting party and the contractor could provide and review the correspondent information through the electronic format "Authorization of the contractor for consult the CFDI's and tax returns" which was available in the tax mailbox.

On August 20, 2019, the Tax Administration Service ("SAT" per its Spanish acronym) released through its website the First Modification Resolution to the Miscellaneous Tax Resolution for 2019, in which rules 3.3.1.44. to 3.3.1.48, that regulated the tax obligations regarding outsourced services using the electronic format, were derogated.

In this regard, for proper compliance, as of the entry into force of the abovementioned Resolution, meaning, August 21, 2019, the taxpayers have to fulfill their tax obligations regarding outsourced services, providing the information in print or electronic form.

However, it should not go unnoticed that on the proposal of Tax Bill 2020, it is suggested to eliminate the obligation of the contracting party and the contractor of the outsourced services of providing monthly information related to that transactions, modifying the articles 5, section II, and 32 section VIII of the Value Added Tax Law in force.

Additionally, the amendment foresees the addition of section IV to article 1-A of the Value Added Tax Law, in order to establish the obligation of the...

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