In recent days, a general administrative resolution was published in the Official Gazette of Mexico City, whereby the local tax authorities are granting an amnesty in debts, tax fines, surcharges and enforcement costs associated to the following local taxes:

  • Real estate acquisition tax;
  • Property tax;
  • Public Entertainment Tax;
  • Tax on lotteries, rafflesand contests;
  • Payroll tax;
  • Tax on the possession or use of vehicles;
  • Tax for providing hosting services;
  • Water rights and rights to discharge to the drainage network;
  • Annual Rights for vehicles control; and
  • Fines for transgressions to tax provisions, different from any payment obligations.

The benefit of this amnesty program  consist in a reduction of 100% in tax fines, surcharges and enforcement costs for those taxpayers who pays before July 31st, 2019 the historical amount of omitted taxes for the years 2014 and onwards, increased with the corresponding inflation adjustment.

Once the taxpayer adheres to the tax amnesty program through the corresponding payment, the Local Finance Ministry automatically will write off all the existing debts of the years 2013 and previous, including the historical omitted tax amount, fines, surcharges and enforcement costs without be necessary to initiate any kind of procedure.

The wording of the tax amnesty program, apparently means, that even those taxpayers with none outstanding balances of local taxes from the years 2014 to 2019, are allowed to apply for an automatic cancellation of any outstanding debt for the years 2013 and previous.

To make the corresponding payment, it is necessary to follow different procedures, depending on the type of tax that seeks to regularize, and analyze if there is any particular situation (tax audits ongoing, means of defense, etc.).

In our view, it is a tax amnesty program with great benefits, thus, if you identify that in your case exists any outstanding debt of the contributions above mentioned, please let us know in order to assist you regularizing this situation during the validity of the amnesty program.

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