What is the program about?
Mexico’s Programas de Auto Regularización (Voluntary Disclosure Program) targets taxpayers with undeclared income or undisclosed assets. The goal of the program is the fight against money laundering and the generation of additional tax revenues. By participating in the program, they can avoid possible penalties if they apply to participate by 15 August 2019.
Which deadlines apply?
In addition to the deadline for the application, the validity period has to be noted. The Voluntary Disclosure Program will be available for the period from 1 July 2013 to 31 December 2018, provided that the Tax Administration SAT approves the participation of the taxpayer.
What is required to participate?
In addition to the deadlines and the approval of the SAT, taxpayers must be up to date with their tax obligations for 2019.
Which financial transactions are affected by the disclosure?
The disclosure program could be of particular interest to taxpayers who have generated income from the following financial transactions:
- Real estate leasing transactions (also between related parties or within the same group of companies)
- granting loans
- Real estate development and construction services
- Receiving donations
- Provision of various professional services, including staff outsourcing
- Resource management through savings bank programs
These regulatory changes could affect your business with view to customizing or support of your ERP/SAP system. Please contact us to learn about possible necessary reactions to the changes – we are happy to assist you!