Mexico - Tax amnesty program (2013) 

The tax amnesty program provides an opportunity for individuals and legal entities to qualify for a total or partial waiver of tax assessments of federal taxes, antidumping duties, surcharges, and inflationary adjustment (as well as related penalties that otherwise would be imposed for a failure to comply with federal tax laws).

Like prior tax amnesty programs in Mexico, the new tax amnesty program is being implemented to allow the Mexican tax authorities to recover revenue, reduce tax administrative costs, and collect on assessments that may have become “unaffordable” for taxpayers.

Specific provisions on how to apply for amnesty are expected to be issued by the tax authorities in the near future (i.e., before 31 March 2013).

Overview of tax amnesty

Tax liabilities that may be subject to the tax amnesty provisions include:

• An 80% “forgiveness” from federal taxes, fees, penalties, and antidumping duties related to periods before 1 January 2007
• A 100% “forgiveness” from related tax surcharges if 20% of the tax assessment is paid in a single cash payment
• A 100% “forgiveness” for taxpayers whose returns for 2009, 2010, and 2011 were audited, if the taxpayer then properly complied with its tax obligations
• A 100% “forgiveness” of penalties arising from certain federal liabilities for tax periods from January 2007 to December 2012, to the extent the tax assessment is paid in a single installment
• A 60% “forgiveness” for penalties imposed for 2012 and 2013 for taxpayer failures to comply with the tax law (other than failure to pay), but excluding tax losses not properly claimed, provided the amounts are paid within 30 days of notification

For more information, contact a KPMG tax professional:

Jose Manuel Ramirez