Part of the instrumental obligations of Mexican taxpayers lies in being in the tax authorities’ spotlight, so one of the tools for better oversight of their actions is undoubtedly the Federal Taxpayer Registry. This registry and digital media have acquired extraordinary importance in recent decades. In this post, I intend to illustrate the reasons for this.
In it, I will address who must register in the Federal Taxpayer Registry, what information is provided, the different types of notices taxpayers must submit in connection with registration, and a wealth of helpful information for the reader.
Without further ado, let’s begin:
List of Contents
- Translation
- 1) Who Is Required to Register in the Federal Taxpayer Registry?
- A) Application For Registration of Legal Entities
- B) Registration of Public Bodies
- 2) General Catalog of Obligations of the Federal Taxpayer Registry
- 3) Specific Obligations Arising from the Federal Taxpayer Registry
- A) Individuals and Legal Entities
- B) Legal Representatives of Legal Entities
- C) Workers
- D) Public Notaries
- E) Public Bodies
- F) Obligation to Retain
- 4) Powers of the Tax Authority
- 5) Notices to the Federal Taxpayer Registry
- A) Change of Name or Corporate Name
- B) Change of Capital Regime
- C) Correction or Change of Name
- D) Change of Tax Address
- E) Suspension of Activities
- F) Resumption of Activities
- G) Updating Economic Activities and Obligations
- H) Opening of Establishments, Branches, Premises, Fixed or Semi-Fixed Stalls, Places Where Merchandise is Stored, and, in General, Any Premises or Establishments Used For the Performance of Activities
- I) Closing of Establishments, Branches, Premises, Fixed or Semi-fixed stalls, Places Where Merchandise is Stored, and, in General, Any Premises or Establishments Used For the Performance of Activities
- J) Initiation of Liquidation
- K) Opening of Succession
- L) Cancellation in the Federal Taxpayer Registry Due to the Liquidation of the Estate
- M) Cancellation in the Federal Taxpayer Registry Due to Death
- N) Cancellation in the Federal Taxpayer Registry Due to the Total Liquidation of Assets
- Ñ) Cancellation in the Federal Taxpayer Registry Due to Total Cessation of Operations
- O) Cancellation in the Federal Taxpayer Registry Due to a Merger of Companies
- P) Change of Tax Residency
- Q) Initiation of Bankruptcy Proceedings
Translation
This is a translation of my entry El Registro Federal de Contribuyentes en México.
1) Who Is Required to Register in the Federal Taxpayer Registry?
To monitor taxpayer activities, the Federal Taxpayer Registry is the instrument required by every individual or legal entity in Mexico to carry out any lawful economic activity through which they are obligated to pay taxes, with few exceptions. Individuals who must apply for registration must apply when they fall into any of the following situations:
I.- Registration of legal entities resident in Mexico and legal entities resident abroad with a permanent establishment in Mexico.
II.- Registration and cancellation in the Federal Taxpayer Registry due to a merger of companies.
Registration and cancellation in the Federal Taxpayers Registry for a merger of companies must be filed by the company that emerges as a result of the merger. Upon filing, the company will be deemed to have fulfilled its obligation to file the merger notice referred to in Article 14-B, Section I, subparagraph a) of the Federal Tax Code and the cancellation notice in the Federal Taxpayers Registry on behalf of the merged company(ies).
III.- Registration and cancellation in the Federal Taxpayers Registry for a total spin-off of companies.
Registration and cancellation in the Federal Taxpayers Registry for a total spin-off of companies must be filed by the spun-off company designated in the spin-off agreement. The spun-off company designated in the spin-off agreement must provide the Federal Taxpayers Registry code of the spun-off company. The spun-off company will be exempt from filing the cancellation notice.
On the other hand, any other companies that emerge as a result of the spin-off must only submit the application for registration in the Federal Taxpayers Registry.
IV.- Registration for partial spin-off of companies.
The spun-off companies must submit registration in the Federal Taxpayers Registry for partial spin-off of companies, and the Federal Taxpayers Registry code of the spun-off company must be provided.
V.- Registration for joint ventures.
VI.- Registration of legal entities residing abroad without a permanent establishment in Mexico.
VII.- Registration of individuals residing in Mexico and individuals living abroad with a permanent establishment in Mexico.
VIII.- Registration of individuals without economic activity.
In the case of individuals without economic activities, such registration must be carried out under the heading “Registration of Individuals Without Economic Activity,” by the Regulations of the Federal Tax Code. Therefore, they will not be required to file returns or pay taxes or be subject to penalties, including those provided for in Article 80, Section I of the Federal Tax Code[1].
IX.- Registration of individuals residing abroad without a permanent establishment in Mexico.
Residents abroad without a permanent establishment in Mexico who do not have a legal representative in Mexico must submit their application for registration in the Federal Taxpayer Registry, as well as the notifications referred to in Section V, including by certified mail with return receipt requested, to the Mexican consulate closest to their place of residence or the authority authorized for these purposes by the Tax Administration Service.
X.- Registration of trusts.
A) Application For Registration of Legal Entities
Legal entities resident in Mexico must submit their application for registration in the Federal Taxpayers Registry at the time their articles of incorporation or document are signed through the notary public who notarizes the corresponding incorporation instrument, including in cases where companies are formed due to the merger or spin-off of legal entities.
Legal entities not incorporated before a notary public must submit their application for registration within the month following the signing of the contract or the publication of the decree or legal act that gives rise to it.
On the other hand, when legal entities specify, before a notary public, in the signed legal instrument that gives rise to their existence, a certain and determined later date or a suspensive condition for their emergence, they must submit their application for registration to the Federal Taxpayers Registry on the date established in said instrument or when said suspensive condition is met. The notary public may submit this application under the terms established for this purpose by the Tax Administration Service through general rules.
In other cases, the application for registration must be submitted within one month following the day on which:
I.- The legal situation or event that gives rise to filing periodic, payment, or information returns by themselves or on behalf of third parties is actualized.
II.- The taxpayers referred to in Chapter I of Title IV of the Income Tax Law (individuals who receive income from salaries and general provision of a subordinate personal service or workers) begin providing their services.
It should be noted that legal entities required to apply for registration in the Federal Taxpayer Registry must provide the name of their legal representative in their application for registration.
B) Registration of Public Bodies
Administrative units and decentralized administrative bodies of agencies and other areas or bodies of the Federation, federated entities, municipalities, decentralized agencies, and autonomous constitutional bodies, which are authorized by the public entity to which they belong, must register in the Federal Taxpayer Registry to fulfill their tax obligations as withholding agents and as taxpayers separately from the public entity to which they belong.
For the purposes of the registration referred to in the preceding paragraph, the name shall begin with the name of the public entity to which the applicant belongs, followed by the name that identifies it and is established in the document containing the organizational structure of the public entity to which it belongs. The start date of operations noted in the registration application will be the date of authorization granted by the aforementioned public entity.
2) General Catalog of Obligations of the Federal Taxpayer Registry
The obligations of those subject to the Federal Taxpayer Registry are to request:
I.- Registration in the Federal Taxpayer Registry.
II.- Providing information related to the identity, address, and, in general, tax status to the Federal Taxpayer Registry through the notifications established in the Regulations of the Federal Tax Code, as well as registering and maintaining up-to-date a single email address and telephone number for the taxpayer, or through the means of contact determined by the tax authority through general rules.
III.- Notifying the Federal Taxpayer Registry of their tax address.
IV.- Requesting an advanced electronic signature certificate.
V.- Record the Federal Taxpayer Registry code for each partner and shareholder in the book of partners and shareholders, and in each meeting minutes, the code for the partners or shareholders attending.
VI.- File a notice with the Federal Taxpayer Registry, reporting the name and Federal Taxpayer Registry code of partners, shareholders, associates, and other persons, regardless of their name, who by their nature are part of the organizational structure and who hold such status by the bylaws or legislation under which they are incorporated, each time any modification or addition is made to these, as well as reporting the percentage of participation held by each of them in the share capital, the corporate purpose, and who exercises effective control.
On the other hand, in the case of companies whose shares are publicly traded, the information referred to in this section must be submitted regarding persons who have control, significant influence, or authority within the legal entity. Likewise, the names of the common representatives, their identification number in the Federal Taxpayer Registry, and the percentage they represent of the total shares issued by the legal entity must be reported.
VII.- Request the registration of the taxpayers to whom the payments referred to in Chapter I of Title IV of the Income Tax Law (workers) will be made, as well as provide their email address and telephone number or the means of contact determined by the tax authority through general rules.
VIII.- Require the executors of public deeds recording articles of incorporation, merger, spin-off, or liquidation of legal entities to verify, within one month of signing, that they have filed an application for registration or notice of liquidation or cancellation, as applicable, with the Federal Taxpayer Registry of the legal entity in question, and must record the date of filing in their protocol. Otherwise, the notary must inform the Tax Administration Service of this omission within the following month.
IX.- Record in the public deeds recording articles of incorporation or other meeting minutes the Federal Taxpayer Registry code corresponding to each partner, shareholder, or legal representative, or, where applicable, verify that said code appears in the indicated documents, ensuring that it matches the respective identification number.
X.- Submit the information declaration relating to the transactions recorded in public deeds executed before public notaries concerning the transactions carried out immediately preceding month.
3) Specific Obligations Arising from the Federal Taxpayer Registry
A) Individuals and Legal Entities
Individuals and legal entities shall be required to comply with sections 1, 2, 3, and 4 of Section 2) of this entry whenever:
a) They must file periodic tax returns.
b) They must issue digital tax receipts online for the acts or activities they perform or for the income they receive.
On the other hand, individuals and legal entities that have opened an account in their name with entities of the financial system or with savings and loan cooperatives, in which they receive deposits or carry out transactions subject to taxes, are only required to comply with sections 1, 2, and 3 of Section II of this entry, provided that they do not fall into the situations a) and b) mentioned above.
Likewise, legal entities shall also be required to comply with paragraphs 5 and 6 of section II of this entry.
Finally, individuals and legal entities that submit any document to the tax and jurisdictional authorities in matters involving the Ministry of Finance and Public Credit or the Tax Administration Service must always cite the code assigned by the Tax Administration Service upon registration in the Federal Taxpayer Registry.
B) Legal Representatives of Legal Entities
Legal representatives, partners, and shareholders of legal entities are required to comply with paragraphs 1, 2, 3, and 4 of section 2) of this entry, as are individuals who have acquired their shares through recognized or widely traded markets and whose shares are considered to be placed with the general investing public, provided that, in the latter case, the partner or shareholder has not requested their registration in the book of partners and shareholders.
C) Workers
Persons who make the payments referred to in Chapter I of Title IV of the Income Tax Law (workers) must comply with the obligation outlined in paragraph 7 of section 2) of this entry.
D) Public Notaries
Public notaries must comply with the obligations outlined in paragraphs 8, 9, and 10 of section 2) of this entry.
Furthermore, when state laws establish that the signing and authorization of the public deed are carried out at the same time, taxpayers will have one month from the signing and authorization of said deed to verify before the public notary that they have applied for registration or the notice of liquidation or cancellation of the legal entity in question in the Federal Taxpayers Registry.
If taxpayers fail to comply with the aforementioned provisions, the notary public must report such omission to the Tax Administration Service no later than the business day following the expiration of the deadline established in the aforementioned paragraph.
Furthermore, notaries public before whom the minutes of meetings of legal entities whose partners or shareholders must request registration in the Federal Taxpayer Registry are constituted or notarized are considered to have entered the Federal Taxpayer Registry code corresponding to each partner or shareholder when:
I.- They add to the appendix of the minutes or public deed in question a copy of the tax identification card or tax registration certificate issued by the Tax Administration Service.
II.- They ensure that the copy of the tax identification card or tax registration certificate is included in another deed or public deed previously executed before the same notary public and indicate this circumstance.
III.- Record in the relevant minutes or public deed the Federal Taxpayer Registry code contained in the tax identification card or in the tax registration certificate provided by the partners or shareholders, a copy of which is in their possession; or, in the case of partners or shareholders residing abroad, record in the minutes or public deed the declaration under oath of the delegate attending the notarization thereof, that the legal entity or partner, resident in Mexico, will submit the list no later than March 31 of the following year.
Finally, the provisions of the preceding paragraphs are considered to be complied with when public notaries request the Federal Taxpayer Registry code, the tax identification card, or the tax registration certificate issued by the Tax Administration Service and it is not provided, provided that they notify said decentralized body of this circumstance and they record in their protocol the fact that they have made the aforementioned request without it being attended to.
E) Public Bodies
Administrative units and decentralized administrative bodies of the dependencies and other areas or bodies of the Federation, the Federal Entities, municipalities, decentralized agencies, and autonomous constitutional bodies, which are authorized by the public entity to which they belong and which have the status of withholding tax or taxpayer, in accordance with tax laws, must comply separately from the public entity to which they belong, with the obligations set forth in paragraphs 1, 2, and 3 of Section 2) of this entry.
F) Obligation to Retain
In all cases, obligated entities must retain at their tax domicile the documentation that proves compliance with the obligations outlined in the Federal Taxpayer Registry derived from the General Rules issued by the Tax Administration Service, the Federal Tax Code, and the Regulations of the Federal Tax Code.
4) Powers of the Tax Authority
Regarding the Federal Taxpayer Registry, the tax authority has the following powers:
I.- Carry out verifications in accordance with the procedure established in Article 49 of the Federal Tax Code, without this being considered the initiation of its verification powers, to verify the following data:
a) Those provided in the Federal Taxpayer Registry related to identity, address, and other data provided for said registry.
b) Those indicated in digital tax receipts online, declarations, files, documents, or databases maintained by the tax authorities have in their possession or to which they have access.
In verifying the existence and location of the tax domicile, tax authorities may use services, technological means, or any other technological tool that provides georeferencing, panoramic, or satellite views. This information may also be used to prepare and design a tax geographic framework and to update information in the Federal Taxpayer Registry regarding the tax domicile of taxpayers.
II.- Consider the taxpayer’s tax domicile as the one where any of the conditions established in Article 10 of the Federal Tax Code[2] are met, when the information stated in the applications and notices referred to in this article does not correspond to any of the conditions outlined in said provision.
III.- Establish, through general rules, simplified mechanisms for registration in the Federal Taxpayer Registry, taking into account the characteristics of the taxpayer’s tax regime.
IV.- Establish, through general rules, the terms under which individuals and legal entities residing abroad without a permanent establishment in the country may request registration in the Federal Taxpayer Registry.
V.- Perform registration or update in the Federal Taxpayer Registry based on the data provided by individuals.
VI.- Request clarifications, information, or documentation from taxpayers, public notaries, or any other authority before whom a document has been notarized or apostilled, as appropriate.
VII.- Correct the data in the Federal Taxpayer Registry based on evidence collected, including that provided by third parties.
VIII.- Assign the corresponding code to each taxpayer registered in the Federal Taxpayer Registry.
IX.- Establish, through general rules, the characteristics that must be included in the tax identification card and the tax registration certificate.
X.- Designate auxiliary personnel who may verify the existence and location of the tax address stated by the taxpayer in the registration or in the notice of change of address. Verification may be carried out using tools that provide panoramic or satellite views.
XI.- Issue, through general rules, the requirements through which individuals who are not obligated subjects under this article may request registration in the Federal Taxpayer Registry.
XII.- Suspend or reduce taxpayer obligations when confirmed in their systems or with information provided by other authorities or third parties that they have not carried out any activity in the three previous fiscal years.
XIII.- Cancel or suspend the Federal Taxpayer Registry when it is confirmed in its systems or with information provided by other authorities or third parties that the taxpayer has not carried out any activity in the 5 previous fiscal years, that during said period no tax receipts have been issued, that there are no outstanding obligations to fulfill, or due to the death of the natural person, as well as meeting the other requirements established by the Tax Administration Service through general rules.
5) Notices to the Federal Taxpayer Registry
Individuals and legal entities must file the following notices, where applicable:
A) Change of Name or Corporate Name
This notice must be filed immediately after the change in the name or corporate name of the legal entity.
B) Change of Capital Regime
This notice must be filed by legal entities that change their capital regime before a notary public or transform into another type of company.
C) Correction or Change of Name
This notice must be filed by individuals who change or correct their first or last name in accordance with the applicable legal provisions.
D) Change of Tax Address
This notice must be submitted within the period established in the first paragraph of Article 27 of the Federal Tax Code as soon as the taxpayer or withholding agent establishes their tax address in a location other than the one indicated in the Federal Taxpayer Registry or when a new tax address must be established pursuant to Article 10 of the Federal Tax Code (previously cited).
However, this notice must also be submitted when information regarding the tax address must be updated due to a change in official nomenclature or numbering.
E) Suspension of Activities
This notice must be submitted when the individual taxpayer discontinues all economic activities that require filing periodic returns, provided that they do not have to comply with other periodic tax payment obligations, either on their own behalf or on behalf of third parties.
Individuals who make payments referred to in Chapter I of Title IV of the Income Tax Law (for employees) must submit the notice indicated in the preceding paragraph by the taxpayers to whom they make such payments when the latter cease to provide the services for which they were required to apply for registration, the deadline for submission being computed from the day the services cease to be provided.
The submission of the notice referred to in this section releases the taxpayer from the obligation to file periodic returns during the suspension of activities, except for those for the fiscal year in which they interrupt their activities and in the case of accrued taxes not yet paid or returns corresponding to periods prior to the start date of the suspension of activities.
The foregoing shall not apply to taxpayers referred to in Chapter I of Title IV of the Income Tax Law (employees) whose notice was submitted by the employer but who continue to provide services to another employer or have other types of economic activities for tax purposes or periodic obligations.
Finally, during the period of suspension of activities, the taxpayer is not exempt from filing the other notices provided for in the applicable regulations.
F) Resumption of Activities
This notice must be filed when the taxpayer, after being suspended from activities that require the filing of periodic returns, restarts an economic activity or has a periodic tax payment obligation, either on their own behalf or on behalf of third parties.
Persons making the payments referred to in Chapter I of Title IV of the Income Tax Law must file the notice referred to in this section for the taxpayers to whom they make such payments and whose activities are suspended in the Federal Taxpayer Registry.
G) Updating Economic Activities and Obligations
This notice must be filed when the taxpayer:
I.- Starts or stops carrying out an economic activity that results in a change in the code in the catalog of economic activities issued by the Tax Administration Service or changes its primary activity.
II.- Opt for a different compliance frequency for an activity or obligation already declared in the Federal Taxpayer Registry or when you choose not to make provisional or final payments in accordance with the tax provisions.
III.- Choose a different tax option than the one you are currently applying, with respect to the same economic activity, which results in a change in tax obligations, implying a different tax regime.
IV.- Have a new periodic tax obligation for self-employment or third-party payments or when you cease to have one of these.
Finally, taxpayers who exercise the option not to accumulate their corresponding income from marital partnership and are registered in the Federal Taxpayer Registry will not file the notice of update of economic activities and obligations for this activity, per the Income Tax Law Regulations provisions.
H) Opening of Establishments, Branches, Premises, Fixed or Semi-Fixed Stalls, Places Where Merchandise is Stored, and, in General, Any Premises or Establishments Used For the Performance of Activities
Regarding this notice, it will not be necessary to file it when the premises or establishments referred to herein are located at the tax domicile declared by the taxpayer for the purposes of the Federal Taxpayer Registry.
I) Closing of Establishments, Branches, Premises, Fixed or Semi-fixed stalls, Places Where Merchandise is Stored, and, in General, Any Premises or Establishments Used For the Performance of Activities
J) Initiation of Liquidation
Regarding the notice of initiation of liquidation, it must be filed within one month following the date on which the tax return for the fiscal year that ended early is filed.
K) Opening of Succession
The legal representative of the estate must file the notice of opening of succession in the event of the death of a person required to file periodic tax returns on their own account. This notice must be filed after accepting the position and prior to filing the notice of cancellation with the Federal Taxpayer Registry due to the liquidation of the estate.
The taxpayer is not required to file this notice when the deceased person was required to file a periodic return solely for personal services or is suspended from activities, except, in the latter case, when the taxpayer has certain tax credits.
L) Cancellation in the Federal Taxpayer Registry Due to the Liquidation of the Estate
The notice of cancellation in the Federal Taxpayer Registry due to the liquidation of the estate must be filed by the legal representative of the estate once the liquidation of the estate has been finalized.
M) Cancellation in the Federal Taxpayer Registry Due to Death
The notice of cancellation in the Federal Taxpayer Registry due to death must be filed by any relative of the deceased or by an interested third party, provided that the conditions for filing the notice of opening of the estate have not been met.
N) Cancellation in the Federal Taxpayer Registry Due to the Total Liquidation of Assets
The notice of cancellation in the Federal Taxpayer Registry due to the total liquidation of assets must be filed by taxpayers who pay taxes under Title II of the Income Tax Law (legal entities), together with the final declaration of the total liquidation of the company’s assets referred to in Article 12 of the aforementioned law.
For the preceding paragraph and Article 76, Section V of the Income Tax Law[3], when the assessment year referred to in Article 12 of the same law is for a period of less than 3 months, the taxpayer must submit the notice under review together with the declaration of the assessment year.
Ñ) Cancellation in the Federal Taxpayer Registry Due to Total Cessation of Operations
The notice of cancellation in the Federal Taxpayer Registry due to total cessation of operations must be submitted by residents abroad who cease to conduct operations in Mexico or close their permanent establishments.
The aforementioned notice must also be submitted by legal entities and trusts that are being dissolved, as well as by civil organizations and trusts authorized to receive tax-deductible donations.
The deadline for filing the notice begins once the last return required by taxpayers has been filed.
O) Cancellation in the Federal Taxpayer Registry Due to a Merger of Companies
The notice of cancellation in the Federal Taxpayer Registry due to a merger of companies must be filed by the merging company when it is the surviving company, and the merger notice will be deemed filed.
The aforementioned notice must be filed once the merger is carried out and must contain the Federal Taxpayer Registry code, as well as the name or corporate name of the merging companies and the date on which the merger took place.
P) Change of Tax Residency
The notice of change of tax residency must be filed when individuals and legal entities cease to be residents of Mexico no later than 15 days prior to the date on which the change of tax residency occurs and no more than two months in advance.
Q) Initiation of Bankruptcy Proceedings
The notice of initiation of bankruptcy proceedings must be filed upon admission of the bankruptcy petition.
The notices referred to in this section must be filed within one month following the month in which the legal assumption or the event motivating it arises, prior to filing any proceedings that must be completed before the Tax Administration Service, with the exception of the notices indicated in sections D), J), N), Ñ), and O), which must be filed in accordance with Article 30, sections III, VII, XI, XII, and XIV of the Regulations of the Federal Tax Code.
By Omar Gómez
Mexican Tax, Administrative and Constitutional Attorney
Partner
Visit my website ogomezabogado.com
[1] Article 80.- Anyone who commits the violations related to the Federal Taxpayer Registry referred to in Article 79 shall be subject to the following fines:
From $4,480.00 to $13,430.00, for those included in Sections I, II, and VI.
[2] Article 10.- The following shall be considered as the tax domicile:
I. In the case of individuals:
a) When they carry out business activities, the premises where their principal place of business is located.
b) When they do not carry out the activities indicated in the preceding paragraph, the premises they use to carry out their activities.
c) Only in cases where the natural person who carries out the activities indicated in the preceding paragraphs does not have a premises, shall it be their home. For these purposes, the tax authorities shall inform the taxpayer at their home that they have a period of five days to prove that their domicile corresponds to one of the conditions provided for in paragraphs a) or b) of this section.
Whenever taxpayers have not provided any of the addresses mentioned in the preceding paragraphs or have not been located there, the address they have provided to financial institutions or savings and loan cooperatives will be considered their address when they are users of the services provided by these institutions.
II. In the case of legal entities:
a) When they are residents in the country, the premises where the main administration of the business is located.
b) In the case of establishments of legal entities resident abroad, said establishment; in the case of multiple establishments, the premises where the main administration of the business is located in the country, or, failing that, the one they designate.
When taxpayers have not designated a tax domicile when required to do so, or have designated a tax domicile other than the one that corresponds to them in accordance with the provisions of this same provision, or when they have stated a fictitious domicile, the tax authorities may carry out investigations in any place where they carry out their activities or in the place that is considered their domicile in accordance with this article, without distinction.
[3] Article 76.- Taxpayers who obtain income from those indicated in this Title, in addition to the obligations established in other articles of this Law, shall have the following: […].
IV. Prepare a statement of financial position and take an inventory of stocks as of the end of the fiscal year, in accordance with the respective regulatory provisions.