Financial Crime World

Mexico’s Tax Authority Issues Warning: Shareholders Must Declare Income by March 31st

Mexico City - The Mexican Tax Authority (SAT) has issued a stern warning to foreign investors and shareholders operating in the country, reminding them of their obligation to declare their income and assets by March 31st.

Warning Issued Due to Non-Compliance

According to sources close to the matter, the SAT is cracking down on non-compliance with tax regulations, citing a significant increase in the number of foreign investors failing to file their annual reports and declarations. This warning serves as a reminder for all shareholders and partners of companies operating in Mexico to comply with the country’s tax laws.

Obligations Under Mexican Law

Under Mexican law, shareholders and partners of companies operating in Mexico must submit an annual report to the Tax Authority by March 31st. The report must include personal details of the shareholders or partners, including information on where they pay taxes.

Additionally, the SAT requires companies with foreign investments to submit quarterly reports, known as “Informes de Movimientos de Dinero” (IMDN), which detail financial transactions exceeding MXN 20 million.

Consequences of Non-Compliance

Failure to comply with these regulations can result in severe penalties, including fines and even the freezing of company bank accounts. It is essential for foreign investors to understand their obligations under Mexican law and take necessary steps to ensure they are in compliance.

Compliance Services Offered by Biz Latin Hub

To help businesses navigate these complex regulations, Biz Latin Hub offers a range of services, including:

  • Accounting and taxation
  • Company formation
  • Due diligence
  • Hiring and PEO (Professional Employer Organization)
  • Corporate legal services

If you have any questions or concerns about financial regulatory compliance in Mexico, please do not hesitate to contact us. We are here to help you navigate the complex regulations and ensure your business is compliant with all requirements.