Mexico: Information reporting for service contracts in Mexico City
Mexico: Information reporting for service contracts
Under changes for 2021 to the tax law for Mexico City, there is a new reporting requirement for individuals or legal entities that enter into contracts or subcontracts for services. These persons are required to comply with reporting requirements within 10 days after the contract is concluded or after modifications are made.
Mexico City’s financial authority on 19 January 2021 announced how to comply with these reporting requirements. The information that is to be reported includes the business name and address of the contractor, its federal taxpayer registry identification number, the number of workers involved in providing the subject services, and a copy of the contract.
In most instances, the information is required to be reported within 10 days after the conclusion or modification of the contract. For contracts that were already in effect as of 1 January 2021, the information must be submitted no later than 31 January 2021 (regardless of the dates of the contract or dates when modified).
A failure to comply with the reporting requirements will be subject to penalties in amounts ranging from MXN 3,713 to 9,413.
Read a January 2021 report (Spanish) prepared by the KPMG member firm in Mexico
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