Pursuant to the Miscellaneous Tax Resolution for 2022, Article 32-A of the Federal Tax Code (“CFF” for its acronym in Spanish) sets forth the obligation for certain legal entities to have their financial statements audited by a public accountant registered before the Tax Administration Service (SAT).

Companies that are required to mandatorily audit their financial statements are those that:

(i) In the last immediate fiscal year their accumulated income, for income tax purposes, is equal to or greater than $1,855,919,380.00.

(ii) At the close of the immediate fiscal year, had shares placed in the stock market.

Furthermore, individuals with business activities or legal entities that meet one of the following criteria may optionally have their financial statements audited by an authorized public accountant:

i) Had obtained accumulable income greater than $157,785,270.00.

ii) The value of its determined assets exceeds $124,650,380.00.

iii) Had at least three hundred employees in each of the months of the immediately preceding fiscal year.

On the other hand, pursuant to article 32-H of the CFF, taxpayers in any of the following scenarios, shall be obliged to file before the SAT, as part of their annual tax return, their Tax Status Information (also referred to as ISSF for its acronym in Spanish):

i) Legal entities that in the last immediate fiscal year their accumulated income, for income tax purposes, is equal to or greater than $1,016,759,000.00.

ii) Legal entities that, at the close of the immediate fiscal year, had shares placed in the stock market.

iii) Corporate groups.

iv) State-owned entities of the Federal Public Administration.

v) Legal entities resident abroad with a permanent establishment in Mexico.

vi) Legal entities resident in Mexico that carry out transactions with residents abroad.

vii) Taxpayers that are related parties of those obligated to audit their financial statements.

It is important to mention that taxpayers who, being required to or choosing to do so, audit their financial statements, shall be deemed to have complied with the obligation to submit the information on their tax situation set forth in Article 32-H of the CFF.

For purposes of the foregoing, the corresponding audit report shall be filed no later than May 15, 2024.

Hoping the foregoing is useful, please do not hesitate to contact us if you may have any comment or question on this matter.