Transfer Pricing Obligations in the IMCP’s Tax Reform

What are the changes in transfer pricing proposed by the IMCP in the proposed 2023 Tax Reform?

The IMCP (Instituto Mexicano de Contadores Públicos – Mexican Public Accountants Institute) presented a tax reform proposal for 2023 aimed at alleviating the impact of high inflation. Laura Grajeda Trejo, president of the IMCP, stated that, if approved, such reform would create productive jobs, encourage savings and productive investment, and generate legal certainty for taxpayers and tax authorities.   

Transfer Pricing

Among the main points of the reform are the transfer pricing obligations for taxpayers with low administrative capacity and the deadline to file the information transfer pricing statements.  

In this case, the proposal includes the benefit of not being obliged to keep the transfer pricing documentation referred to in section IX of Article 76 and XI of Article 110 of the Income Tax Law, applicable to taxpayers with limited administrative and financial capacity, be extended so that these taxpayers also do not have the obligation to file information transfer pricing statements, referred to in sections X and XII of article 76 and X of article 110 of the Income Tax Law.  

Since it is incongruent that it is not mandatory to obtain and keep such documentation but to file the corresponding information statements.

Taxpayers whose annual income from business activities and the rendering of professional services exceeds 13 million and 3 million pesos, respectively, as established in Articles 76, Section X, second paragraph and 110, Section XI of the Income Tax Law, must file the annual related party transactions return.  

To have a reasonable period for its capture, drafting, and filing, they propose the filing date to be July 31 of the year following the end of the fiscal year in question instead of May 15 of the year immediately following the end of the fiscal year in question. 

Source: Forbes México 23/09/22

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