Value Added Tax to the provision of digital services

Within the fiscal reform 2020, the incorporation of chapter III Bis into the VAT law is contemplated, in this the tax obligations to which residents abroad without establishment in Mexico that provide digital services to recipients located in territory will be determined national.

The Senate passes preliminary bill on commercial procedural law

The Senate approved this week a bill on commercial procedural matters. This bill defines the process and the essential elements to guarantee the right to defense, this provides greater legal certainty to the justiciables and allows a balanced commercial process.

New general antiabuse law

The tax reform for fiscal year 2020, contemplates the incorporation of Article 5o.-A into the Federal Fiscal
Code of the Federation. This article establishes that legal acts that lack a business reason and generate a tax benefit will be characterized by the tax authorities for verification.

Corporate homicide: the new risk for companies

Our Counsel Gabriel Calvillo, leader of the Corporate Criminal Responsibility and Compliance Practice, shares his opinion about Corporate Homicide in this publication by El Economista.

The new Federal Republican Austerity Act and the necessary update of the anticorruption compliance strategies

Within the framework of the National Anti-Corruption System, the Federal Law of Republican Austerity was published and the General Law of Administrative Responsibilities was reformed, this makes it necessary to update the compliance and corporate integrity policies of the companies.

New limitation to the deduction of interest payments

As of January 1, a new limitation on the deduction of interest will be established, which will be applicable to all legal entities and permanent establishments of residents abroad who pay taxes under Title II of the MITL.

Tax and organized crime legal reforms significance in relation to corporate risks.

The Decree that amends the Federal Law against Organized Crime was published in the Official Journal of the Federation, this decree modifies Article 11 BIS of the Federal Criminal Code regarding criminal liability of legal persons. The reforms are aimed at criminal prosecution of smuggling, tax fraud and the illicit use of tax receipts through the rules of investigation, punishment and enforcement of penalties that are applicable to organized crime.

Bill for the amendement of the Mexican Federal Labor Law and the Social Security Law regarding outsourcing provisions.

An initiative to reform the Federal Labor Law and the Social Security Law by Senator Napoleón Gómez Urrutia was presented to the Senate, this initiative aims to limit subcontracting so that employers assume responsibility in the payment of utilities and security social and tax fraud can be eliminated through the use of false invoices.

Obligation to withhold Value Added Tax for contractors of personnel supply services.

On October 17, the Report of the Finance and Public Credit Commission was published in the Parliamentary Gazette, which includes the addition of section IV to Article 1-A of the VAT Law to establish the obligation to the contractors of the services of labor outsourcing, to calculate, retain and find out, before the tax authorities, the VAT caused by these operations.

The Ministry of Energy published the modifications to the Guidelines that establish the criteria for the granting of Clean Energy Certificates.

On October 28, the Ministry of Energy published in the DOF the modifications to the Guidelines that establish the criteria for the granting of Clean Energy Certificates (CELs) and the requirements for their acquisition. This change allows CFE-owned power plants to receive CELs for all of the electric power they generate from Clean Energy sources regardless of the date they have entered into operation.