JULY 2010 EDITION: Legal Updates
Administrative Improvements in the Simplification of Tax Returns
On June 30, 2010, the decree that creates administrative improvements in the simplification of federal tax returnswas published. The highlights of such decree, effective as of July 1, 2010, are the following: 1.Taxpayers to whom the single rate business tax (IETU) applies may file, in the month that follows the end of the fiscal year, the information used as basis to determine such tax for such fiscal year, instead of filing such information on a monthly or annual basis; 2. In terms of the valued added tax (IVA), taxpayers who must include information with regards to IVA in their income tax (ISR) returns, and to file information as to the payment, withholding, credit and transfer of IVA with regards to their transactions with suppliers on a monthly basis, may elect not to include such information in their income tax returns, provided they file such information on a monthly basis; 3. Taxpayers who must have their financial statements audited by an authorized public accountant, in accordance with the Federal Tax Code and the Social Security Law, may choose not to file audit reports provided they file the information by the deadlines and in the format established by the general rules provided by the corresponding tax authorities. Donees authorized to receive ISR deductible gifts, merged or spun-off business associations or entities managed by the Public State-Owned Administration will still be required to file audit reports; and 4. The advanced electronic signature certificates for individuals issued on or after July 1, 2010 will have a maximum term of four years from the date of issuance instead of the prior term of two years.