Companies established in Mexico are required annually to self-determine its workers' compensation insurance premium to be used during the fiscal year in order to comply with Social Security contributions obligations to the Mexican Social Security Institute (IMSS).   However, we have detected cases in which IMSS, unilaterally and through an administrative resolution, corrects or reclassifies the workers' compensation premium upwards, causing harm to companies by forcing them t

Tax authorities have audit powers to verify compliance with taxpayers' tax obligations; these powers are established in the Federal Tax Code and are exercised through audits.   We have detected an increase in these powers, particularly in foreign trade audits, leading to significant tax assessments that could permanently affect companies.   There are alternative solutions that could be useful in the early stages of the audit. Advance Dispute Resolutions (Settlement Agreements

Article 22 of the Federal Tax Code establishes the process that a taxpayer (individual or legal entity) must follow to obtain a tax refund when a credit balance is generated in their tax returns. However, we have documented cases in which the tax authority makes excessive information requests and unilaterally withdraws the applicants' requests, or, worse yet, denies them the refund through an appealable resolution.   At TP Legal, we sponsored a significant case in which a com

The process of suspending and subsequently canceling taxpayers' Digital Seal Certificates in Mexico (CSD) has become increasingly common (and, not to mention, effective for the authorities). The CSD is elemental to issue an invoice (Digital Fiscal Receipt – CFDI) for any transaction carried out by companies.   The process is pre-established in Article 17-H Bis of the Federal Tax Code; however, the authorities have increasingly implemented cases whose clarification process has

Registration in the Business Certification Scheme (CIVA) for VAT and IEPS has been, since its inception, an incentive for taxpayers, as it allows them to generate a tax credit equivalent to 100% of the amount owed for these taxes in the case of specific transactions.   However, CIVA, in addition to providing benefits, entails ongoing obligations that all those who benefit from the certification must comply with. Therefore, we have detected a considerable increase in cases in