Tax accounting deals with the reporting of all transactions occurring in a business, as well as its income, expenses, and investments. The Federal Tax Code (CFF) comprises a variety of fiscal matters. Their aim is to determine taxpayers’ contributions and tax obligations.
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The Tax Code addresses all financial transactions carried out by natural persons. Tax revenue is used for the betterment of the economy and its people as it funds programs in the health, education, justice, and security sectors, while supporting the fight against poverty and the strengthening of the country’s economic activities, for instance. Therefore, a nation’s economic growth and economic development are heavily dependent on a strong tax system.
Key reforms included in the 2021 Federal Tax Code:
The Mexican Congress passed the 2021 Federal Income Law, under which the Federal Tax Code was modified. Here are some of the changes; to view the reforms contained in the 2021 Federal Tax Code, you can visit: Constitutional and Legal Reforms Approved by the LXIV Legislature.
Article 5-A: Anti-abuse clause:
The determination of contributions, accessory tax obligations, and penalty fees will be limited, notwithstanding any investigations and/or criminal liabilities resulting from them.
Article 14: Alienations:
Alienations with deferred or partial payments will now be applicable to operations made by the general public.
Article 14-B: Partnership dissolution:
An alienation occurs when any information that had not been previously reported in the financial statements approved for the dissolution of the partnership appears in the shareholders’ equity.
Article 17-K: E-filing mailbox:
The Tax Administration Service (SAT) will be able to send notifications to taxpayers through any of the contact methods provided by them.
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At QuAdrans Law and Finance, we offer tax consulting services for both domestic and foreign businesses. These services include the planning and design of tax strategies, helping companies meet their tax obligations, and providing them with professional advice on payroll management. To learn more about our services, click here.
