The government plans to block applications that are not registered in the Federal Taxpayers Registry (RFC).
October
28, 2020
7 min read
This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.
Opinions expressed by Entrepreneur contributors are their own.
In order to guarantee compliance with tax obligations for foreign technology platforms operating in Mexico , the government is contemplating blocking applications that do not register in the Federal Taxpayers Registry (RFC) , do not correctly withhold taxes or fail to report of its activities to the Tax Administration Service (SAT) .
This as part of a draft decree that modifies and adds various articles of the Income Tax (ISR) and Value Added Tax (VAT) laws, so that said legislation has a stricter control mechanism so that the digital service providers from other countries do not incur serious tax omissions.
The registration of these companies in the registry of taxpayers is mandatory; For this reason, the Ministry of Finance and Public Credit (SHCP) , through a decree in the Official Gazette of the Federation (DOF) has published updates to the list of companies that have already registered in the SAT, which add up to 35 to the cut of last August 31.
Likewise, the SAT enabled a microsite where these technological platforms can register and consult all the information on the new federal regulations.
For Victor Aguirre, a lawyer specialized in technology and startups , these proposals put the country as a world example in terms of tax collection, “in fact, Mexico has always been considered a model in the sense that it has implemented actions very quickly. of BEPS, which are fiscal policy suggestions. Years ago, I had already implemented transfer prices that are multinational issues ”.
Aguirre affirms that this new legislation adds an “even floor” for foreign and national digital companies, since equalizing the burden of tax obligations encourages competition and the development of innovation. "Previously there was unfair competition, but it was due to a lack of regulation, now national and foreign providers of digital services are already in equitable conditions."
It also points out that the Organization for Economic Cooperation and Development (OECD) has carried out various studies and schemes at a multinational level on how, for example, a company that is going to have benefits in Mexico strategically transfers these to a country that has a low tax rate and that's where you pay taxes. So the OECD has an action plan against the erosion of the tax base and the transfer of profits to address the challenges of the digital economy, taking into account two factors: that it is highly intangible and the importance that it has ”.
The bill even includes that for the OECD the digital economy "is...
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