On 28 February 2018, a tax amnesty program was published in the Official Gazette of Mexico City, with the aim to pardon the 100% of surcharges, fines, and enforcement costs to those taxpayers who paid their local tax debts before April 30th, 2018.
To have access to such benefit it is necessary paying only the tax owed with its inflation adjustment, through the official payment forms authorized by the Mexico City Government, which could be obtained at their website.
It is important to mention that the amnesty is also applicable to taxpayers currently subject to a tax audit, where it is necessary to follow a special procedure to obtain the authorization of the tax authorities.
In the case of tax debts that have been challenged by a legal remedy, it is required to withdraw the legal action, in order to follow a procedure before the tax authority to obtain the corresponding authorization, in order to come up with the payment no later than June 30th, 2018.
This tax amnesty program includes the following taxes and duties:
- Acquisition of real estate tax;
- Property tax;
- Public Entertainment Tax;
- Tax on lotteries, raffles, sweepstakes and contests;
- Payroll tax;
- Tax on the possession or use of vehicles;
- Tax for providing Lodging Services;
- Water Supply Fee;
- Drainage System Fee;
- Public Markets Lessee Fee;
- Vehicle control Fee.
- Fines for tax infractions different to payment obligations.
In some cases, and depending on the type of tax or duty, there are exceptions or special procedures to be followed to have access to the amnesty. As an example, omitted payment on the "Tax for the possession or use of vehicles" only applies for 2012 debts and onwards.
The benefits of the amnesty neither apply in cases where taxpayers have a criminal complaint filed by the tax authorities, nor to non-tax administrative fines.
We consider that this program is a good opportunity to pay any tax or duty owed to the Mexico City Government, however, we recommend analyzing each case by case to determine the best course of action.
At Baker McKenzie we have specialists in local taxes, so we will happy to discuss any comment or question you may have.