Dear clients and friends:
The purpose of this bulletin is to provide you with information regarding some of the tax provisions applicable for 2022, specifically with the implementation of the new Simplified Trust Regime for Corporate Persons (RESICO-PM).
As part of the tax reform and based on article 206, first paragraph of the Income Tax Law (LISR), as of 2022, those legal entities residing in Mexico, only constituted by individuals, must pay taxes under this Regime, whose total income in the immediately preceding fiscal year does not exceed the amount of 35 million pesos, or those legal entities resident in Mexico, only constituted by individuals when they start operations and estimate that their income will not exceed the aforementioned amount.
Those who cannot pay taxes under the Simplified Trust Regime
Article 206, third paragraph, of the LISR, establishes those who cannot pay taxes under the RESICO-PM, as follows:
- Legal entities when one or more of their partners, shareholders or members, participate in other commercial companies where they have control of the company or its administration or when they are related parties in the terms of article 90 of the LISR.
- Taxpayers who carry out activities through a trust or joint venture.
- Cooperative production companies.
- Taxpayers who stop paying taxes in the Simplified Trust Regime for legal entities due to exceeding the maximum amount allowed or due to breach of obligations.
- Taxpayers who pay taxes in the Optional Regime for Group of Companies, of the Coordinated, Regime of Agricultural, Livestock, Forestry and Fishing Activities, and Credit, Insurance and Bond Institutions.
- Corporations with non-profit purposes.
How to belong to the Simplified Trust Regime
Based on the second article, section I of the transitional provisions of the LISR, taxpayers who pay taxes in Title II “of Legal Persons” and meet the requirements to pay taxes in the RESICO-PM , they must have submitted a notice of update of obligations to the taxpayer ID number (RFC) no later than January 31st, 2022, through the Portal of the Tax Administration Service sat.gob.mx, in the section “RFC procedures”.
Notwithstanding the foregoing, if the notice to update economic activities and obligations was omitted, according to the information on the income invoiced in 2021, the tax authorities (SAT) will automatically carry out said update of tax obligations. It is important to mention that the SAT will notify it through the registered means of contact, and if it does not exist, it will be done by stands on its portal in accordance with the provisions of article 139 of the Federal Fiscal Code.
Legal entity taxpayers who, while suspended, resume activities, may choose to pay taxes in terms of the provisions of the RESICO-PM, provided they submit the notice referred to in procedure sheet 74/CFF “Notice of resumption of activities”, contained in Appendix 1-A. Likewise, legal entities that resume activities and that were paying taxes under Title II or applying the accumulation option provided for in Chapter VII of Title VII of the LISR in force until December 31st, 2021, must present the aforementioned notice for purposes to pay taxes in terms of the RESICO-PM.
Tax benefits for being taxed in the “RESICO” of legal entities
In general terms, the benefits that legal entities will have for being taxed in this Regime, are the following:
- Income for income tax purposes, will be declared when they are actually collected, unlike the previous scheme until the 2021 financial year, where income was declared when it was invoiced, accrued or collected, whichever came first.
- The deductions must be disbursed (paid) in the year in question (except deductions for fixed assets).
- For the deduction of investments in fixed assets, deferred expenses or deferred charges, the maximum authorized percentages may be applied, provided that the total amount of the investment has not exceeded three million pesos 00/100 MN
- No profit coefficient will be used, based on previous years.
Disadvantages for some taxpayers for paying taxes in the “RESICO” of legal entities
The companies or civil associations to which the new regime applies are unable to consider as a deduction the advances they pay to their partners, because the new provisions for this regime do not include this deduction.
In this sense, these taxpayers may continue to deliver advances to their partners and treat them as similar to salaries to said income in terms of article 94, section II of the LISR, however, they will not be deductible for purposes of calculating advanced tax payments of ISR, and in the case of distributing profits, they must treat the payments made to their members as dividends, as established in article 212 of the LISR, and make the additional withholding of 10% in accordance with 140 of the cited Law.
The tax authorities are expected to issue new rules regarding tax deductions established in article 208 of the LISR.
Deductions that may be carried out by legal entities that are taxed under the Simplified Trust Regime
In summary, legal entities that are taxed under the Simplified Trust Regime will have the following deductions:
- Refunds received or discounts or bonuses made, provided that the corresponding income had been accumulated.
- Acquisitions of merchandise, as well as raw materials.
- The net expenses of discounts, bonuses or refunds.
- Investments.
- The interest paid derived from the activity, without any adjustment.
- The capitals taken in loans, as long as these are reinvested in the activities of the corporation.
- Fees paid by employers to the Mexican Social Security Institute.
- Contributions made to create or increase reserves for staff pension or retirement funds, complementary to those established by the Social Security Law and seniority premiums constituted under the terms of the Income Tax Law.
It is important to point out that taxpayers who pay taxes in the RESICO-PM will consider expenses and investments as non-deductible in terms of 28 of the Income Tax Law.
ISR Provisional Payments
Taxpayers will make monthly provisional payments on account of the fiscal year tax no later than the 17th day of the month immediately following the one to which the payment corresponds.
In this sense, the provisional ISR payments are determined by subtracting from the totality of the income actually received in the period from the beginning of the year and until the last day of the month to which the payment corresponds, the authorized deductions actually disbursed corresponding to the same period, as well as the Employee Profit Sharing (PTU) paid in the year and, if applicable, the tax losses that occurred in previous years pending amortization.
The rate established in article 9 of the LISR (30%) will be applied to the calculated profit, and provisional payments made previously, as well as the withholding that would have been made to the taxpayer in the terms of article 54 of the LISR.
Monthly VAT payments
The legal entities that are taxed in the RESICO-PM, may file the final VAT payment through the filing of the “Simplified Confidence VAT” declaration no later than the 17th day of the month immediately following the corresponding month payment, in accordance with the provisions of rule 2.8.3.1. of the Miscellaneous Tax Resolution (RMF) for 2022 and what is mentioned in article 5-D of the Value Added Tax Law.
Annual declaration
For legal entities that are taxed under the Simplified Trust Regime, article 212 of the LISR provides that the tax for the year will be calculated in accordance with article 9 of the LISR, against which the provisional payments made will be credited during the year, the ISR paid abroad and the distribution of dividends or profits in accordance with articles 5 and 10 of the LISR.
In its case, the base for the distribution of the PTU will be the taxable profit that results in accordance with what is stated in article 9 of the LISR.
When the deductions are greater than the income, the PTU paid will be added to the difference and the result will be a tax loss, which may be amortized in subsequent years in accordance with Title II, Chapter V of Title II of the LISR.
Transitory Provisions
The Second Transitory Article provides a transition mechanism for legal entities that are taxed under Title II and that as of 2022 will pay taxes under this new regime, mainly establishing the following:
- They must not accumulate the income actually received in 2022, when said income has been accumulated until December 31st, 2021 in accordance with Title II.
- Apply the same criteria for deductions, that is, do not make again the deductions that have already been made under Title II.
- Continue to apply the maximum investment deduction percentages that corresponded to them according to the periods elapsed, with respect to investments made until December 31st, 2021.
- For inventories as of December 31st, 2021 pending deduction, continue applying the system of cost of goods sold under Title II, until they are exhausted.
- An additional deduction is established for investments acquired from September 1st to December 31st, 2021, to which the deduction percentages authorized for this regime in article 209 (which are greater than those of Title II) may be applied in the proportion that represent the months of the year in which the asset has been used by the taxpayer, provided that it does not imply the deduction of an amount greater than 100% of the investment. The foregoing will apply for the determination of the annual ISR and the provisional payments for the year 2022 and will be an additional deduction to the one made in 2021 for the same assets.
Other obligations established in the LISR
In addition to the obligations mentioned in previous paragraphs, the LISR considers other tax provisions that must be complied with, indicated in the following articles of the LISR:
- Article 76. Miscellaneous obligations.
- Article 76-A. Obligations when they enter into transactions with related parties.
- Article 77. CUFIN of legal entities.
- Article 77-A. CUIER of legal entities dedicated to power generation.
- Article 78. Capital redemption.
Facilities for those who pay taxes in “RESICO” of legal entities
Through rule 3.13.19 of the RMF for 2022, it is relieved from complying with the following obligations:
- Send the electronic accounting and enter its accounting information on a monthly basis in terms of what is indicated in article 28, section IV of the Federal Fiscal Code.
- Send the electronic accounting and enter its accounting information on a monthly basis in terms of what is indicated in article 28, section IV of the Federal Fiscal Code.
As always, we are at your service for any clarification, doubt or support you may require in order to correctly comply with your tax obligations.
The purpose of this bulletin is to inform about the most important publications on tax matters, without it intending to present the opinion of our Firm on the aspects discussed; each case must be carefully analyzed to conclude on the correct interpretation of the provisions discussed here.
