Obligation To Report Income And Transactions In Countries Listed Under The Income Tax Law - Tax - Mondaq Mexico - Mondaq Business Briefing - Books and Journals - VLEX 646619241

Obligation To Report Income And Transactions In Countries Listed Under The Income Tax Law

Author:Mr Gerardo Nieto Martínez, Gil Alonso Zenteno, Alejandro Barrera, Victor Barajas, Sergio Barajas and Mario Barrera
Profession:Basham, Ringe y Correa, S.C.
 
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The recent amendments to the Omnibus Tax Ruling for 2016, restarts the obligation for Mexican residents with investments in certain countries, to report their income and transactions that have been carried out through foreign vehicles or legal entities located in jurisdictions such as: the Netherlands Antilles (Bonaire, Curacao, Saba, St. Eustache, St. Maarten), Aruba, Bahamas Bahrein, Barbados, Belize, Bermuda, Costa Rica, United Arab Emirates, Gibraltar, Hong Kong, Isle of Man, Cayman Islands, Guernsey, Jersey, Panama, Samoa, St. Lucia, Uruguay.

In accordance with the Third Amendment to the 2016 Omnibus Tax Ruling, rule 3.19.9 and the last paragraph of rule 3.19.11 are repealed. These regulations allowed Mexican residents not to report annually investments that were held in foreign vehicles or legal entities, including those which are transparent for tax purposes, in countries that are listed in the transitory provisions of the Income Tax Law ("tax havens"), provided that their investments did not qualify as Preferential Tax Regimes ("REFIPRES" as its Spanish acronym) and the country where such vehicle or legal entity was located, had in effect an agreement to avoid double taxation...

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