Worldwide transfer pricing reference guide 2014

Mexico (continued)
Documentation deadlines (continued)
for each year. For those companies that chose to have a Tax Report based on their financial statements prepared by an external auditor
(Dictamen Fiscal), the taxpayer’s external auditor is required to disclose the company’s compliance with all tax obligations, including
those related to transfer pricing. This disclosure is made through the Tax Report that must be filed by 30 June every year. As of 2010,
taxpayers may choose not to go through the external Tax Certification (Dictamen Fiscal) and submit the required tax information
themselves, in a filing called “Alternative Information to the Tax Report,” also due in June. New regulations regarding this matter are
expected in 2014.
Statute of limitations on transfer pricing assessments
The statute of limitations on assessment in Mexico is five years. The term is affected by amended returns with respect to items changed,
and it is suspended by audit. The SAT has two years to complete a transfer pricing audit.
Return disclosures/related party disclosures
Mexican taxpayers must submit a transfer pricing return (Exhibit 9 of the Multiple Annual Tax Return) to the SAT which is due
contemporaneously with the submission of the annual tax return. Such informative return includes an appendix for the disclosure of
information related to intercompany transactions with foreign related parties, including information by type of transaction and by
related party:
• Names, countries and tax identification numbers of affiliates
• Types of transactions and corresponding amounts
• Transfer pricing methods applied
• Gross or operating margins earned on each transaction (only applicable for certain types of transactions)
• Withholding rates, and fiscal year during which deductions of the intercompany transaction were registered
Also, according to Article 182 of the ITL, an informative return must be filed by maquiladora companies (DIEMSE). Both informative
returns must be filed by 30 June of the following year and require the same information to be submitted by Mexican taxpayers.
When filing the Tax Report or the Alternative Information to the Tax Report, the auditor or the taxpayer must indicate, among other
things, that the company’s transfer pricing documentation is in place and the transfer pricing tax return was filed for the fiscal year under
review and that it complies with the requirements stated in the ITL. Further, the auditor or the taxpayer must complete and file a large
number of detailed questionnaires including the ones described below, which deal with intercompany transactions:
• Attachment 32: Information regarding related party transactions, such as:
• Tax ID
• Tax name
• Country of residence
• Type of intercompany transaction
• Amount of the intercompany transaction
• Transfer pricing methodology applied
• Assessment regarding transfer pricing compliance
This information is required for all intercompany transactions (i.e., with foreign and domestic related parties, for each related party and
type of transaction). This questionnaire is intended to verify compliance with ITL not only with respect to transfer pricing aspects, but
also with respect to deductibility requirements of all tax positions.
• Attachment 33: Questionnaire on related party transactions. This questionnaire includes, among others, the following sections:
• APAs (if applicable)
• Transfer pricing documentation compliance and filing date of informative tax return
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