In accordance with article 14 of the Income Tax Law, taxpayers will make their monthly provisional payments on account of the tax for the year, no later than the 17th day of the month following to which the payment corresponds.
Article 5-D of the Value Added Tax Law states that taxpayers will make the payment of the tax by means of a tax return that they will submit no later than the 17th day of the month following to which the payment corresponds.
Article 73, first paragraph of the Federal Tax Code sets forth that fines will not be imposed when an infraction has been incurred due to force majeure.
Comments
We consider that the Ruling states a health emergency due to force majeure duly declared by the Federal Government, so that the tax authorities are legally prevented to imposing any fine on the event that the taxpayers do not pay their corresponding taxes in accordance with the applicable legal provisions and until such General Council declares it ended and, therefore, also the legal impediment to impose fines will no longer exists.
Recommendations
If during the health emergency declared due to force majeure the taxpayers are not in a position to pay their taxes of March 2020 and subsequent months, in full and on time (e.g. by giving priority to the payment of their workers’ payroll), they may make their calculation and submit the monthly and/or final returns and when they will be able to pay such taxes, they must do so with their update-by-inflation without paying any fine.
If you have any questions regarding the foregoing, please do not hesitate to contact us.
Mexico City, April 17, 2020
