DECREE OF TAX STIMULES SOUTH BORDER REGION
12/1/2021
The purpose of this decree is to promote the development of the economy of the taxpayers of the southern border region of the country, in order to stimulate and increase investment, promote productivity and contribute to the creation of sources of employment, according to the following:
I. DEFINITIONS
The First Article of the Decree defines the municipalities that make up the southern border region for the purposes of the Decree:
| Quintana Roo | Chiapas | Campeche | Tabasco | |||||
| Othón P. Blanco | Palenque | Madero mazapa | Calakmul | Balancan | ||||
| Ocosingo | Motozintla | Candelaria | Tenosique | |||||
| Meritorious of the Americas | Tapachula | |||||||
| Marquis of Comillas | Cacahoatán | |||||||
| Wonder Tenejapa | Union Juarez | |||||||
| The daisies | Tuxtla Chico | |||||||
| La Trinitaria | Metapa | |||||||
| Comalapa border | Hidalgo border | |||||||
| Amatenango de la Frontera | Suchiate | |||||||
For the purposes of this Decree, it will be understood by:
- New fixed assets: Those that are used for the first time in Mexico, or that would have been used in Mexico, provided that the person transmitting said assets is not a related party of the taxpayer in terms of articles 90, last paragraph or 179, fifth and sixth paragraphs of the ISR Law.
- Census: “Register of stimulus beneficiaries for the southern border region”.
- Total income: Total amount of income obtained by the taxpayer, in Mexico or abroad, for any reason, in accordance with the provisions of article 1 of the Income Tax Law.
II. INCOME TAX STIMULATION
The Second Article indicates that the stimulus consists of a tax credit equivalent to one third of the income tax incurred, both in the fiscal year and in the provisional payments, which will be credited against the ISR caused in the fiscal year or in the provisional payments of the same fiscal year. , and applies to income received exclusively in the Southern Border Region.
In other words, when applying this credit, two-thirds of the ISR will be paid, which could be equivalent to an effective rate of 20% in the case of legal entities and for individuals, the effective rate will depend on the range of the rate in that are located to calculate the tax.
By virtue of the fact that the stimulus applies exclusively to the income obtained in the southern border region, it will be applied in the proportion represented by the income of said region with respect to the total income of the taxpayer obtained in the fiscal year or in the corresponding period to provisional payments. To calculate this proportion, income derived from intangible assets, as well as those corresponding to digital commerce, must be excluded, according to the following:
| Total Revenues of the Southern Border Region | |
| less: | Income derived from intangible assets |
| less: | Income derived from digital commerce |
| same: | Net Income of the Southern Border Region |
| between: | Total Taxpayer Income |
| same: | Proportion of income from the Southern Border Region |
| By: | 100 |
| Same | % of revenues from the Southern Border Region |
Once the proportion is determined, the tax credit is determined as follows:
| ISR caused | |
| between: | 3 |
| same: | Fiscal credit |
| by: | % of revenues from the Southern Border Region |
| Same: | Applicable tax credit |
Subjects of the stimulus
The Second Article also indicates as subjects of the incentive natural and legal persons residing in Mexico, as well as foreign residents with permanent establishment in Mexico, provided that they receive income exclusively in the southern border region and that they pay taxes in the following regimes :
- Legal Persons of the general regime (Title II)
- Individuals with business activities (Title IV, Chapter II, Section I, except fees)
- Legal Entities who exercised the option to accumulate income based on cash flow (Title VII, Chapter VIII)
It is considered that income is received exclusively in the southern border region when the income obtained in that region represents at least 90% of the total income of the taxpayer for the immediately preceding fiscal year. Taxpayers who start activities in the southern border region, after the entry into force of this Decree, must estimate whether their income for the year in this region will represent at least 90% of all income in the corresponding fiscal year. .
On the other hand, Article Five clarifies that individuals who receive income other than those from business activities within the southern border region, for said income will pay income tax in accordance with the corresponding regime, without the application of the stimulus.
In these cases, the tax credit referred to in Article Two of this Decree will be one third of the tax caused in accordance with Title IV, Chapter II, Section I “Of individuals with business and professional activities” of the Income Tax Law, in the proportion calculated in accordance with said article.
Prove the tax domicile in the Southern Border Region
In accordance with Article Three, taxpayers must prove their tax domicile in the Southern Border Region, in accordance with the following:
- When the antiquity registered with the RFC of said domicile, is equal to or greater than eighteen months immediately prior to the date on which they present the notice of registration to the Register, provided that they have, with the economic capacity, assets and facilities to carry out their operations and business activities in the Southern Border Region and prove it at the request of the authority.
- When they have less seniority or begin activities in the Southern Border Region after the entry into force of this Decree, they may apply the incentive of ISR, provided that they have the economic capacity, assets and facilities to carry out their operations and business activities in the Southern Border Region and use new fixed assets for this purpose and prove it at the request of the authority.
The Fourth Article indicates that the same previous requirements are applicable for branches, agencies or establishments that are in the southern border region, or for the opening of the same.
Taxpayers to whom the stimulus does not apply
Article Six indicates a list of taxpayers who will not be able to apply the fiscal stimulus, among which are:
Credit, insurance and surety institutions, general deposit warehouses, financial leasing companies and credit unions.
Taxpayers who pay taxes in Chapter VI of Title II of the Income Tax Law relative to Optional Regime for Groups of Companies
Taxpayers who pay taxes in Chapter VII of Title II of the Income Tax Law related to Coordinated
Taxpayers of the Primary Sector who pay taxes in the Regime of agricultural, livestock, forestry and fishing activities of Title II, Chapter VIII of the Income Tax Law
Taxpayers of the Tax Incorporation Regime (RIF)
Individuals who obtain income from the provision of professional services in accordance with section II of article 100 of the Income Tax Law (fees)
Maquiladoras that pay taxes in accordance with articles 181, 182, 183 and 183-Bis of the Income Tax Law
Taxpayers who carry out activities through trusts in accordance with Chapter III of Title VII (FIBRAS), as well as the fiduciaries of said trusts
Cooperative production societies
Taxpayers who meet the assumptions of article 69 of the CFF whose name, denomination or company name and RFC, are published on the SAT Internet page, except when the publication obeys the provisions of its section VI only in relation to the payment of fines, a circumstance that must be indicated when submitting the registration notice to the Register
Taxpayers who fall within the presumption established in article 69-B of the CFF (Companies that Invoice Simulated Operations, known as EFOS), as well as taxpayers who have a partner or shareholder who is in the assumption of presumption.
Companies that have carried out operations with the previous taxpayers (Companies that deduct invoices from Simulated Operations, known as EDOS) and that the SAT has issued a resolution indicating thatthey did not actually acquire the goods or services covered by the corresponding CFDI. Unless taxpayers have completely corrected their tax situation by filing the corresponding complementary returns and have not filed any means of defense or have withdrawn from it, if applicable.
Taxpayers who have been published in the DOF and on the SAT page due to the presumption of undue transmission of tax losses, established in article 69-B Bis of the CFF
Taxpayers who carry out business activities through trusts, as well as the fiduciaries of said trusts.
Individuals and Legal Entities for income derived from intangible assets
Natural and Legal Persons for the income derived from “digital commerce”, except those indicated by the SAT through rules
Taxpayers who supply personnel through labor subcontracting or are considered labor intermediaries
Taxpayers who have had verification powers exercised in the previous five years and have been given omitted contributions, without having corrected their tax situation
Taxpayers who apply other benefits or tax incentives, including exemptions and subsidies, except for the following:
- Encouragement to employers who hire people with disabilities and older adults (Article 186 of the Income Tax Law)
- Incentive of income tax for unionized workers for social security contributions that added to other income exceed 7 UMAS (Art. Ninth of the Decree of tax benefits of October 30, 2003)
- Various tax incentives provided for in the Decree of tax benefits of December 26, 2013: Tax credit of 80% of income tax for aircraft leasing (Art. 1.4), Tax incentive for tuition payments (Art. 1.8), Import incentive or sale of juices, nectars and other beverages (Art. 2.1) Credit of 100% VAT to hotel services and convention centers (Art. 2.3), Accreditation of 100% of the IEPS on jet fuel (Art. 3.2), Accreditation of the 100% of the IEPS on chewing gum (Art. 3.3)
- Stimulus for the accreditation of VAT caused against the VAT withheld, for IMMEX taxpayers or the automotive industry and other temporary import regimes (Art. Third Decree of IMMEX tax incentives of December 26, 2013)
- Tax benefit related to the accumulation of the part of the demandable price in term sales of real estate for a home (Art. First of the Decree of tax benefits on housing of January 22, 2015)
- Accreditation of 100% of the VAT that is caused by the provision of partial services of construction of real estate destined to dwelling houses (Art. First of the Decree by which support measures are granted in the matter of housing and other fiscal measures of March 26, 2015)
- Fiscal stimulus by which the IEPS quotas applicable to automotive fuels are adjusted (Article One of the Decree establishing fiscal incentives in terms of IEPS applicable to the indicated fuels, published in the DOF on December 27, 2016)
- Taxpayers who are in liquidation exercise
- The legal entities whose partners or shareholders have lost the authorization to apply this incentive individually.
- The productive companies of the state and their subsidiaries, as well as the contractors in accordance with the Hydrocarbons Law.
Requirements
Article Seven states that taxpayers who intend to apply the stimulus, must submit a notice to the SAT no later than March 31 of the fiscal year in question, in order to be registered in the Register, in accordance with the provisions of the general rules issued by the SAT for this purpose.
For which the following requirements must be met:
- Have a positive opinion on compliance with tax obligations for the purposes of the provisions of article 32-D of the CFF.
- Have an advanced electronic signature
- Have access to the tax mailbox through the SAT Internet Portal
- Not being in the procedure of temporary restriction of the use of digital stamps for the issuance of CFDI, in accordance with article 17-H Bis of the CFF
- Not having the certificates issued by the SAT for the issuance of CFDI canceled, in accordance with article 17-H of the CFF.
- Collaborate annually with the SAT, participating in the real-time verification program.
Resolution of authorization, validity and renewal
The Eighth Article establishes that the SAT It will register in the Register the taxpayers who present the notice of registration referred to in the previous article, within the terms established for this.
The registration notice will be effective during the fiscal year in which it was made. If the taxpayer chooses to continue applying the fiscal stimulus in subsequent years, they must submit a renewal notice, no later than March 31 of the fiscal year in question, provided that they continue to meet the requirements and that they are not located in any of the assumptions of Article Six of this Decree.
The SAT may require the taxpayers registered in the Register, the information and documentation it deems appropriate, to verify that they comply with the requirements established in this Chapter, in accordance with the real-time verification program established in the general rules that for such effect issue the SAT.
Removal from the Register
The Ninth Article indicates that the SAT may remove taxpayers who update any of the following behaviors from the Register:
- Request to be removed from the Register.
- Do not submit the renewal notice no later than March 31 of the fiscal year in question.
- Failure to comply with any of the requirements established in this Chapter.
- Update any of the assumptions established in Article Six of this Decree.
- Stop applying the fiscal stimulus referred to in this Chapter, when, having applied it, they did not apply it.
From the moment in which the SAT has removed the taxpayer from the Register, it will lose the right to apply the fiscal stimulus for the entire fiscal year in which this happens and taxpayers must submit, at the latest during the month following that in which the complementary declarations of the provisional payments or, where appropriate, the annual declaration have been canceled, without considering the application of the incentive made and making the payment of the ISR with the update and the corresponding surcharges.
The taxpayers referred to in the preceding paragraph, in no case, may re-apply said stimulus during the validity of this Decree.
III. VALUE ADDED TAX STIMULUS
Article Tenth grants a tax incentive to taxpayers who carry out acts or activities for the sale of goods, the provision of independent services or the granting of the temporary use or enjoyment of goods, in the premises or establishments located within the southern border region, the The stimulus consists of a tax credit equivalent to 50% of the value added tax rate provided for in article 1 of the VAT Law.
For administrative simplification, the tax credit is applied directly on the rate, that is, when applying this tax credit, natural and legal persons will cause VAT at the effective rate of 8%, for the acts or activities mentioned that are carried out in the border strip.
Requirements to apply the stimulus and consequences of non-compliance
The Eleventh Article indicates the requirements to apply the stimulus:
- Carry out the material delivery of the goods or the provision of services in the southern border region.
- Submit a notice to the SAT within 30 calendar days following the entry into force of this Decree
Taxpayers who start activities or who carry out the opening of a branch or establishment after the entry into force of this Decree, must present the notice within the month following the date of registration in the RFC or the presentation of the opening notice
The SAT It may require the taxpayers who presented the notice, the information and documentation it deems necessary, in order to verify that they comply with the requirements established in this Chapter, in accordance with the general rules issued for that purpose.
Taxpayers who fail to comply with any of the requirements or fall into any of the assumptions established in Article Twelfth of this Decree, must calculate VAT at the rate of 16% on all acts or activities for which the tax was applied. stimulus provided for in this Chapter, from the moment the taxpayers engaged in any of the aforementioned behaviors, and submit, no later than the following month, the supplementary returns by which they correct their tax situation, as well as make the payment of the update and the corresponding surcharges
Cases in which the VAT stimulus does not apply
In accordance with Article Twelfth, the fiscal stimulus will not be applied in the following cases:
- In the sale of real estate or the transfer and granting of the temporary use and enjoyment of intangible assets.
- The digital services referred to in Article 18-B of Chapter III Bis, Section I “General Provisions” of the Value Added Tax Law.
- Individuals who apply the option established in article 18-M of Chapter III Bis.
- To taxpayers who meet the assumptions of article 69 of the CFF whose name, denomination or company name and RFC, are published on the SAT website, except when the publication obeys the provisions of its section VI only in relation to the payment of fines.
- Taxpayers who fall within the presumption established in article 69-B of the CFF (Companies that Invoice Simulated Operations, known as EFOS), as well as taxpayers who have a partner or shareholder who is in the assumption of presumption.
- Companies that have carried out operations with the previous taxpayers (Companies that deduct invoices from Simulated Operations, known as EDOS) and that the SAT has issued a resolution indicating that In fact, they did not acquire the goods or services covered by the corresponding CFDI, unless they have totally corrected their tax situation by filing the corresponding complementary returns and they have not filed any means of defense or they withdraw from it, if applicable.
- To taxpayers who have been published in the Official Gazette and on the SAT page due to the presumption of undue transmission of tax losses, established in Article 69-B Bis of the CFF
- Taxpayers engaged in the provision of goods or people transportation services, by land, sea or air, except when the provision of said services begins and ends in said region, without stopping outside of it.
IV. GENERAL DISPOSITION
- The Thirteenth Article indicates that the previous tax incentives will not be considered as accumulative income for the purposes of ISR.
- The Fourteenth Article establishes that the SAT may issue general rules for the correct application of this Decree
TRANSIENT
First article: This Decree eIt will enter into force on January 1, 2021 and will be in force until December 31, 2024.
Second and Third Articles: A transition regime is established for taxpayers who cease to apply the provisions of this Decree or for the termination of its validity, noting that in the case of acts carried out previously, or when the goods and services have been provided before the end of validity of the same, the benefits of the Decree will be applicable to them, provided that the income is received within the immediate ten calendar days after the date on which they cease to pay according to this Decree or at the end of its validity.