Translate:

We would like to remind you that pursuant to the Capital Repatriation Decree and the procedural rules to apply the Decree, for those taxpayers who applied the Decree, it is mandatory to file a Notice on Destination of Repatriated Funds no later than 31 December 2017.

Furthermore, please note that said Notice must be filed through the Tax Mailbox (Buzón Tributario) corresponding to each taxpayer which can be found on the SAT webpage.

In accordance with each of the four fields that must be filled in to file said Notice, taxpayers must provide the following information:

  • Destination of the funds invested in Mexico
    1. Investment in financial instruments;
    2. Investment in shares issued by entities;
    3. Acquisition of fixed assets;
    4. Acquisition of land and buildings located in Mexico
    5. Investment in research and development regarding projects undertaken by the taxpayer;
    6. Taxes due (in case of legal entities); and/or
    7. Payment of salaries and wages (in case of legal entities)
  • Amount of funds invested.
  • Date of investment.
  • Tax ID number (RFC) of the payee

In this connection, the SAT published a bulletin referred to as “Specifications for filling in the Notice on Destination of Repatriated Funds” in order to clarify the information to include in each field. These specifications are as follows.

Destination of the funds invested in Mexico.

  • In cases where the funds returned are used to pay taxes, the taxpayer shall select under field 1. “Destination of the funds invested in Mexico” the option “Payment of taxes”

Tax ID number (RFC) of the payee.

  • Field 4 of the Notice must be filled in in the following cases:
    • In cases where the funds returned are used to acquire buildings or fixed assets, the seller of which has outstanding debts related to said assets, and the buyer (i.e. taxpayer who applied the Decree) pays the purchase price directly to the seller or his/her creditors. In this case, the taxpayer shall select under field 1. “Destination of the funds invested in Mexico” the option referring to “Acquisition of fixed assets” and include the Tax ID number (RFC) of the seller in the field “Tax ID number (RFC) of the payee”.
    • In cases where the funds returned are used to pay salaries and wages, the taxpayer shall select under field 1. “Destination of the funds invested in Mexico” the option referring to “Payment of salaries and wages” and include the employer’s tax ID number (RFC) in the field “Tax ID number (RFC) of the payee”, that is, the Tax ID number (RFC) of the same legal entity who returned the funds, not the employee’s RFC.

Repatriated amount.

  • Taxpayers are allowed to inform by means of the Notice a different amount of capital being invested than the one that was returned. The capital invested could be less or more than the capital that was returned under the rules of the Decree.

We will be glad to assist you with the filing of the Notice on Destination of Repatriated Funds.

Explore More Insight