Businesses that don’t comply with new monthly electronic-filing rules face huge fines, warns Rodolfo Martínez Septién, chapter president of the Mexican Institute of Finance Executives (IMEF).
Picking up on a trend that has spread through Latin America, Mexico on July 4 published new tax reporting rules requiring monthly reports starting from July 1. The first records will be due to the tax authorities by Oct. 31.
The new reporting rules were included as part of the 2014 Mexican tax reform. But until now, these specifics had not been disclosed.
According to audit firm EY, taxpayers must maintain accounting records through electronic systems that can create XML format files, which include:
- chart of accounts used during the period
- trial balance, with initial balances, movement for the period and final balances for each of the accounts of the taxpayer, including assets, liabilities, equity and results of operations (revenue, costs and expenses
- information related to journal entries in the accounting records
For companies, the filing deadline for each month is the 25th day of the following month (that is, Aug. 25, 2015, for July 2015’s information, Sept. 25, 2015, for August 2015’s information). For individuals, the filing deadline for each month is the 27th day of the following month. How this hits taxpayers with no internet access was not made clear.
In other Latin American countries where electronic invoicing and filing are law, “fines are real and they are happening,” says tax blogger Steve Sprague. “The forcing of these reports will only put a larger focus on fines and penalties.