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CONTROLLING BENEFICIARY

Pursuant to the amendments to the Federal Tax Code, a NEW TAX OBLIGATION is in force starting January 1st 2022 for all legal entities (companies or associations), trustees, trustors, trust beneficiaries, contracting parties or parties to any other legal structure (joint ventures, condominiums, etc.) which consists in obtaining and keeping as a part of their accounting and bookkeeping, the INFORMATION and DOCUMENTATION that serves in a complete and reliable support of its CONTROLLING BENEFICIARIES.

According to the Mexican Tax Law the CONTROLLING BENEFICIARY is a natural person or group of natural persons that, in a direct or indirect manner:

  • a) Obtains the benefits derived from its participation in the legal entity, or
  • b) Exercises the rights of use or enjoyment of an asset or service, or
  • c) Exercises control over the legal entity (imposes decisions in Shareholders/Partners Meetings or Administration Bodies and the appointing/removal of its members; exercises the voting rights of more than 15% in the capital stock; runs its administration/management, the strategy or main policies of the legal entity).

During the process of obtaining the information of the CONTROLLING BENEFICIARIES, the legal entity is obliged to:

  • a) Identify, verify and validate the information of such persons describing their percentage of participation in the capital stock in the legal entity, including the information related to the chain of ownership (when it comes to ownership in an indirect manner through other entities) or the chain of control (when it comes to control in an indirect manner through other entities).
  • b) Keep the information of its CONTROLLING BENEFICIARIES updated, in case of any change of their identity or participation of such controlling beneficiaries and file the corresponding notice before Mexican tax authorities (SAT) according to such change within the following 15 natural days after the event.
  • c) Implement duly documented reasonable and necessary internal controlling procedures, related to obtain, keep and update the information of its CONTROLLING BENEFICIARIES.
  • d) Keep available this information and provide it to the Mexican Tax Authority (SAT) whenever it requests such information and documents from the CONTROLLING BENEFICIARIES, and even share it with foreign tax authorities, upon request and as long as there is an international treaty with Mexico. Moreover, said information of the CONTROLLING BENEFICIARIES must be provided to Notary Publics and Public Attestors, in the event of entering and formalizing certain legal acts.

Failure to comply with these obligations may result that the legal entity be sanctioned with a fine that goes from $500,000.00 pesos to $2’000,000.00 pesos per each CONTROLLING BENEFICIARY and for each non-compliance obligation.

In GL Abogados we have developed the methodology and documents to comply with said obligation. If you are interested in us supporting you in the accompaniment and advice for the implementation and fulfillment of said obligations, please inform us and we can gladly prepare a specific quote for said services.

CONTACT US
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Av. Américas 1536 Piso 4
Col. Country Club C.P. 44610
Guadalajara, Jalisco, México

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+52 (33) 3817-0024

AVISO DE PRIVACIDAD

Consultores Jurídicos González Luna, S.C.