Provisions under new article 76A of Mexico’s tax law reflect certain items of the OECD’s base erosion and profit shifting (BEPS) project—in particular expanded transfer pricing disclosure requirements that will apply for the 2016 tax year.
The Mexican government’s 2016 federal budget, presented 8 September 2015, included proposals for expanded transfer pricing disclosure requirements. In particular, certain taxpayers (as identified pursuant to Article 32-H) that engage in transactions with related parties, would be required to submit to the tax authorities certain country-by-country information about the taxation of their business transactions.
The expanded transfer pricing disclosure requirements were enacted as part of the 2016 federal tax reform legislation. Read a 2015 report (Spanish) prepared by the KPMG member firm in Mexico: Reforma Fiscal 2016
Additional disclosure requirements apply for 2016 with respect to the following taxpayers or entities:
Taxpayers that satisfy one of the above-listed requirements must file the following information returns. These information returns are required to be filed in December of the year following the tax year to which it corresponds. Therefore, the information returns for the first reporting year (2016) must be filed by 31 December 2017.
Master information return, for the multinational group describing:
Local information return, transactions with related parties describing:
Country-by-country information return describing:
The country-by-country information tax return requirement only applies to those taxpayer are identifies as “Mexican parent companies” or those that satisfy the following requirements:
Also, Mexican taxpayers or foreign taxpayers with a permanent establishment in Mexico and designated by the foreign parent company as the company responsible for submitting the country-by-country information return must file the country-by-country report.
For more information, contact a tax professional with KPMG’s Global Transfer Pricing Services group in Mexico:
Teresa Quinones | +52 (55) 5246 8347 | firstname.lastname@example.org
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