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Effective 1 January 2022, pursuant to the recently amended Federal Tax Code, legal entities, trusts and any legal vehicle or figure incorporated under the laws of Mexico ("Mexican Entities/Vehicles") and registered before the Tax Administration Service (SAT) must maintain as part of their tax accounting registries information regarding their beneficial owners. This information must be shared with the SAT upon request jointly with the corresponding procedure implemented in the legal entity to make the corresponding updates. Failure to comply with this information may result in fines of up to two million pesos per beneficial owner.
In the case of trusts, information should be requested to the settlor, trustee and beneficiaries.
Who qualifies as a beneficial owner?
Mexican Entities/Vehicles must identify the beneficial owner of the Mexican Entities/Vehicle as of 1 January 2022. Whether or not a person qualifies as a beneficial owner should be determined according to the definition established under Article 32-B Quarter of the Federal Tax Code. The term beneficial owner (BO) is defined as an individual or group of individuals, who:
The definition is very broad and may be subject to confusion. That is why the interpretation of Article 32-B Quarter should be made in line with other international provisions regarding beneficial owner -i.e. GAFI recommendations and OECD guidelines.
What information should be obtained from the BO?
According to the Tax Administrative Guidelines, the following information should be obtained from each BO:
This information should be provided upon request to the SAT.
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