Mexico: Tax Amnesty Update
On February 18, 2013, the Mexican tax administration (Servicio de Administración Tributaria - SAT) published temporary regulations (Spanish) on the tax amnesty program enacted in December 2012. Taxpayers wishing to benefit from the program must file an application online with the SAT by May 31, 2013.
Under the program, 80 percent of outstanding federal tax debt and related penalties incurred by entities and individuals dating back to years before January 2007 will be forgiven upon request of the taxpayers. Tax owed for more recent years must still be paid, but penalties for 2012 and 2013, other than penalties for failure to pay the tax, are also reduced by 60 percent. Taxpayers who wish to take advantage of the amnesty must declare all unpaid tax (not just what’s assessed by the authorities) and they must clear the whole liability in a single payment. The amount of tax forgiven will not constitute taxable income for Mexican income tax purposes. The amnesty is not available to taxpayers already subject to criminal proceedings for tax fraud.
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