Bullletin/Regular filings that a Mexican Company must comply with on a regular basis (monthly, bimonthly, quarterly or annual basis).
To Our Clients and Friends:
Please be advised that in order to have your Mexican company in compliance with Mexican Government agencies, the Mexican company must be registered with the following Mexican Government Agencies. In some agencies the company must comply on a regular monthly, bimonthly, quarterly or annual basis.
1) The Ministry of Finance and Public Credit. File Income Taxes.
The accounting firm that advises the company may inform you of the different tax obligations to be taken by the company, that is, if the company’s taxes are to be paid in a monthly or quarterly basis, as well as supplying you with the necessary information for the filing of the income tax returns
2) The Ministry of Economy. File and obtain its IMMEX (Maquila) Program License and extensions.
3) Registration before the Ministry of Finance and Public Credit regarding importers registration (Padron de Importadores).
4) VAT (Value Added Tax “IVA”) and Special Tax on Production and Services (IEPS) Certification before the Tax Administration Service (SAT).
Mexican companies should apply for the VAT (Value Added Tax “IVA”) and Special Tax on Production and Services (IEPS) Certification application or renewal as the case may be and avoid the VAT on temporary importations as long as the corresponding companies comply with the VAT certification requirements and instruction guidelines. .
Please note: That if the Mexican company does not obtain the corresponding certification, it may always apply and process a bond as per the requirements of the Ministry of Finance and Public Credit to avoid the VAT on temporary importations
5) The National Registry of Foreign Investment Registration and renew the registration on an annual basis by filing the Financial-economic questionnaire.
Every company, in which foreign capital participates, independently of the percentage of same, does have the obligation to file an annual and in some chases a quarterly report on the investment carried out the previous year.
6) Ministry of Labor and Social Prevision (STPS).
The Ministry of Labor and Social Prevision is in charge of reviewing if a company complies with the existent norms on work conditions and safety at the workplace. Due to the foregoing, it is important to carry out periodical revisions of the documentation or requirements that are regularly requested by the Ministry of Labor and Social Provision when inspections at the workplace are conducted. The different issues as verified by the Ministry of Labor and Social Prevision.
7) All Mexican companies must register before the Mexican Institute of the Social Security “IMSS”, register their employees and pay a monthly fee.
Please be informed that before the month of February is over, you will have to file before the IMSS a return on work risks classification. In addition to this, periodically, you must make the payments of the taxes to the National Institute of the Social Security, this after hearing the opinion of your tax advisor.
8) All Mexican companies must register before the National Institute for the Workers Housing Fund “INFONAVIT” and pay a monthly fee.
9) The majority of Mexican companies must register before the State Treasury. In the majority of the States in Mexico, a state tax known as the payroll tax which must be paid once every month must be paid. It is based on the cost of the total payroll per month (generally 1%, through 3% of the total payroll per month).
10) All Mexican companies must register before the Retirement Savings Fund System “SAR” and pay a monthly fee.
11) Mexican companies must register before the National Institute of Statistics, Geography and Data “INEGI” and file a monthly employee’s information report.
Every company has the obligation to file a monthly report before the INEGI and said report will have to be filed before day 24th of the month immediately following to the one to which the report corresponds. The monthly INEGI reports are to be filed once the IMMEX (Maquila) Program has been approved.
12) Corporate Law.
Mexican Corporate Law provides that every Mexican company is to hold at least one annual meeting within the first four months of the calendar year. At said meeting, several items are to be dealt with: approval of financial statements, report by the board of directors or sole administrator of the company, examiner’s report, etc.; it is important to comply with this requirement in order for you to chronologically carry the books of the company..
13) Employer Mexican Immigration Registry
A) Mexican companies that will have foreign personnel must register the company with the local Mexican immigration department.
B) Once the employer immigration registry has been processed foreigners can apply for Mexican FMM, Temporary Resident Visa or Permanent Resident Visa are to be applied for and obtained for foreign nationals (non-Mexican) working in Mexico.
14) Environmental Matters. It is necessary to obtain approval from the environmental authorities with respect to the type of operation that is being carried out. The Mexican Maquiladora must submit an environmental preventive report which basically is a detailed report about the operation. The authorities will then verify that there is no hazardous impact to the environment (Environmental Preventive Report) as a result of such activities; likely an operating license together with other applications for the transportation, disposal and handling of materials or substances. The authority may grant its approval or request the Maquiladora to file a more detailed environment impact report.
15) Outsourcing. In addition with the above, please be advised that for those Mexican companies having outsourcing services and in order to limit exposure and potential liabilities as a result of the labor reform in effect, we strongly suggest that your Mexican companies provide any and all outsourcing agreements to be executed for our review (i.e. security guard agreement, cafeteria agreement, cleaning services agreement. etc.).
Should you have any questions or comments with respect to this matter, please do not hesitate to contact us.
Ernesto Velarde Danache, Inc.