On 30 November 2018, the Tax Administration Service (SAT) published in its portal the “Fourth of Modifications to the Miscellaneous Fiscal Resolution for 2018” and its annexes.
Modifications to the value of operations with related parties within the interquartile range
The Resolution added as a criterion in terms of transfer prices that the adjustments made in accordance with the LISR (Income tax law) will only be applicable when the amounts of the agreed considerations are outside the adjusted interquartile range determined in the analysis.
Therefore, it is considered an improper tax practice to make any modification or adaptation to the prices, amounts of consideration or profit margins of transactions with related parties, when these are already within the determined adjusted range in order to obtain an undue tax benefit.
Disposal of intangible assets to individuals residing abroad
A rule is added in which the requirements to be met and documentation that taxpayers in Mexico are required to support the residence of foreign natural persons to those who sell intangible assets are mentioned, and with this they may consider such disposals to be taxed at 0% for of VAT. Although it does not establish it as a requirement, this rule presumes that the alienation is supported by a contract.
