19 Jan Amendments to the Controlling Beneficiary Rules
On December 27th, 2022, the Mexican Tax Authority published the Tax Regulations for 2023, including a relevant amendment applicable to the controlling beneficiary (rules 2.8.1.20 and 2.8.1.22 specifically), whereby the authority clarifies the Criteria for identifying the controlling beneficiary of legal entities.
In few words, the identification of the controlling beneficiary of a legal entity or trust must be the result of applying a sequential criterion.
The first criterion is to identify the controlling beneficiaries falling under the criteria of ownership. If no beneficiaries are identified, then the criteria of control must be applied. Finally, if no controlling beneficiary is identified by applying any the above criteria sequentially, then the administration body, (either the general sole director or the members of the board of directors), must be deemed as the controlling beneficiaries.
Furthermore, these Tax Regulations set forth the following information that legal entities, parties to a trust or contracting parties must keep from their controlling beneficiaries.
- XX. Date on which there has been a modification in the participation or control in the legal entity, trust or any other legal figure.
- XXI. Type of modification on the participation or control in the legal entity, trust or any other legal concept.
- XXII. Date of termination of the participation or control in the legal entity, trust or any other legal concept.
The aforementioned information refers mainly to the information to be added to the internal file of the companies when there are changes in the controlling beneficiaries, so it will only be necessary to prepare it when there are changes after the first compilation of the file.
With these amendments, the collection of information of controlling beneficiaries seems to become simpler and more accessible for all legal entities.
Due to the penalties that are foreseen in case of not complying with this obligation, it is very important that all companies seek advice as soon as possible to comply with this requirement.
At Cuesta Campos, our experts can assist you in the identification of your controlling beneficiaries and in the preparation of the necessary documents to comply with this obligation.
Contact
Rafael Sánchez Acosta
Jorge González