Global

Details

  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 6/18/2012

Mexico - Reporting requirements for permanent establishments of U.S. companies  

June 18: Mexico’s finance ministry (Secretaría de Hacienda y Crédito Público) issued new non-binding tax and customs requirements for certain permanent establishments, pursuant to provisions of the Mexico-United States income tax treaty.

The criteria were published in the official gazette (Diario Oficial de la Federación) on June 13, 2012, in the annex of the general tax rules for 2012 (Resolución Miscelánea Fiscal para 2012) and is as follows:


23/ISR. Aplicación del Artículo 11-A del tratado para evitar la doble tributación con Estados Unidos de América


Se considera que realiza una práctica fiscal indebida, el residente en el extranjero que tenga un establecimiento permanente en el país, que aplique las disposiciones del Artículo 11-A (Imposición sobre Sucursales) del Convenio entre el Gobierno de los Estados Unidos Mexicanos y el Gobierno de los Estados Unidos de América para Evitar la Doble Imposición e Impedir la Evasión Fiscal en Materia de Impuestos Sobre la Renta, en relación con el artículo 193 de la Ley del Impuesto sobre la Renta, respecto de dicho establecimiento permanente.


In general, the new non-binding rules consider that it is inappropriate tax treatment (práctica fiscal indebida) for a foreign resident with a permanent establishment in Mexico to apply Article 11-A (Branch Tax) of the income tax treaty between Mexico and the United States in relation to a determination under article 193 of the income tax law (Artículo 193 de la Ley del Impuesto sobre la Renta) (which concerns the taxation of dividends).


Application of the non-binding criteria must be noted by the taxpayer in its return (dictamen fiscal) filed with the Mexican tax authorities.


To read a June 2012 report (Spanish) [PDF 108 KB], prepared by the KPMG member firm in Mexico: Criterios no vinculativos



For more information, contact a tax professional with KPMG:


Jose Manuel Ramírez

+1 212 872 6541





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