Global

Details

  • Service: Tax, International Corporate Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 12/10/2012

Mexico - Guidance on share transfers, contributions-in-kind, insurance commissions 

December 10: Mexico’s tax authority (Servicio de Administración Tributaria—SAT) in late November 2012 issued guidance concerning the following topics:

  • Transfers of shares - For purposes of obtaining authorization to dispose of shares, in instances involving group restructurings, the transferor and transferee must be established in Mexico and belong to the same group; however, the issuer of the share is not required to be established in Mexico.
  • Contributions in kind - When a company issues shares to a shareholder or partner in exchange for a contribution-in-kind, the consideration is deemed taxable for purposes of the value added tax (VAT) law when complete (“cobrada”).
  • Commissions paid to insurance agents - Consideration paid with respect to life insurance is not exempt from VAT, and is subject to tax at the general rate.

Read a December 2012 report (Spanish) [PDF 106 KB] prepared by the KPMG member firm in Mexico: Criterios Normativos del SAT




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