Mexico
Overview of CbC reporting requirements
Mexico has fully implemented the BEPS Action 13 (CbC reporting) minimum standard and meets all of the terms of references.
First reporting fiscal year: Commencing on or after 1 January 2016
Consolidated group revenue threshold: MXN 12 billion
Filing deadline: 12 months following the end of the reporting fiscal year
The domestic legal and administrative framework
Mexico confirms that its rules have not changed and continue to be applied effectively. Mexico continues to meet all terms of reference.1 2 3
The exchange of information framework
Mexico confirms that its rules have not changed and continue to be applied effectively. Mexico continues to meet all terms of reference.
Appropriate use of CbC reports
Mexico confirms that its rules have not changed and continue to be applied effectively. Mexico continues to meet all terms of reference.
Notes
← 1. Mexico’s 2017/2018 peer review included a general monitoring point with respect to the annual consolidated group revenue threshold under article 76-A, paragraph III.c.6. of the Mexican Income Tax Law, which may be inconsistent with paragraph 8 a) ii. of the terms of reference, as it may generate fluctuations from year to year on the threshold to require the filing of CbC reports. Mexico indicates that the sole purpose of this provision is to have a legal vehicle in order change the threshold if such change arises from the 2020 revision. Mexico confirms that there were no yearly fluctuations to the annual consolidated group revenue threshold under article 76-A during the year in review. This monitoring point remains in place.
← 2. Mexico’s 2017/2018 peer review included a monitoring point relating to the definition of “number of employees” in its legislation. The definition in Mexico’s legislation does not mirror the Action 13 Report’s specific instructions by not providing flexibility to taxpayers to report independent contractors as employees. However, this does not seem to raise any significant concern, taking into account the particular domestic context as described by Mexico. Mexico confirms that the definition of “number of employees” remains as established since it is intended to address specific issues related to certain tax planning setups relevant in the Mexican context. This monitoring point remains in place.
← 3. Mexico’s 2017/2018 peer review included a general monitoring point relating to processes that would allow Mexico to take appropriate measures in case it is notified by another jurisdiction that such other jurisdiction has reason to believe that an error may have led to incorrect or incomplete information reporting by a Reporting Entity or that there is non-compliance of a Reporting Entity with respect to its obligation to file a CbC report. This monitoring point remains in place.