In brief
In light of recent amendments to the Federal Tax Code (FTC) and to various foreign trade provisions, the head of Mexico’s Tax Administration Service (SAT) issued, on 31 December 2025, the “Agreement by which powers are delegated to SAT public officials” (“Decree”). The Agreement is intended to realign SAT’s internal responsibility structure to more efficiently implement enhanced audit and verification mechanisms under current legislation. It does not expand SAT’s statutory authorities; rather, it redistributes and multiplies the officials who may exercise existing powers. Officials may continue to exercise authorities under SAT’s Internal Regulations and any prior delegations that remain in force.
In more detail
SAT’s audit function has long been triggered not only by discretionary taxpayer selection but also by legally supported digital models that perform automated cross-checks of information held in SAT systems. The Agreement does not create these authorities; it broadens the number of officials authorized to use them, accelerating and mainstreaming their application. Through risk-based and predictive models, officials may review CFDIs (digital tax invoices), cross-reference returns, banking, customs and third-party information, issue compliance invitations letters, initiate electronic audits and follow up accordingly.
The Agreement comprises six Articles — five delegatory in nature — and a sixth that confirms existing delegations under other instruments or legal provisions.
Article One – Delegations within the General Administration of Federal Tax Audit
Broad authorities are delegated to the General Administrator of Federal Tax Audit to: (i) request economic, financial and banking information from taxpayers, joint and several obligors and third parties for offsite review; (ii) access, online and in real time, taxpayers’ systems and fiscal records concerning their tax obligations; (iii) request identification and contact information for governing bodies and legal representatives of legal entities; (iv) authorize the use of technological tools (photography, audio and video) during official proceedings; (v) notify and disclose findings of facts or omissions identified in audits indicating potential non compliance; (vi) determine the falsity of CFDIs; and (vii) order and conduct site visits to verify the actual existence of operations and legal acts.
The same authorities — primarily those related to information requests, system access, use of technological tools, and disclosure of facts or omissions — are delegated to the Central Administrators of National Audit Operations, Technical Tax Analysis, Audit Planning and Programming, Verification and Evaluation of Federative Entities under Fiscal Coordination, and Refunds and Offsets, as well as their coordinators and administrators, and the decentralized administrators and deputy administrators of tax audit. Generally, these delegations do not include CFDI falsity determinations or the ordering of site visits.
The Central Administrator of Strategic Audit and its subordinate structure are delegated the same authorities as the General Administrator of Federal Tax Audit, including the authority to determine CFDI falsity and to conduct site visits.
Article Two – Delegations within the General Administration of Foreign Trade Audit
Specific foreign trade audit authorities are delegated to officials within SAT’s General Administration of Foreign Trade Audit. The General Administrator of Foreign Trade Audit may: (i) request economic, financial and banking information from taxpayers, joint and several obligors and third parties, including outside of site visits; (ii) review and process notices under the Customs Law regarding the import and export of goods; (iii) integrate and participate in the Customs Council (Article 159 Bis of the Customs Law), the body that decides on the granting of customs broker licenses and authorization of customs agencies; (iv) access, online and in real time, taxpayers’ systems and records; (v) request identification and contact information for governing bodies and legal representatives of legal entities; (vi) authorize the use of technological tools (photography, audio and video) during proceedings; and (vii) inform taxpayers and their governing bodies of facts or omissions detected that may indicate tax non-compliance in the exercise of verification powers.
The Central Administrator of Foreign Trade Planning and Programming and its dependent administrators are delegated solely the authority to request economic, financial and banking information from taxpayers, joint and several obligors and third parties, including outside of site visits.
The Central Administrator of Legal Support for Foreign Trade Audit is delegated authorities to request economic, financial and banking information; to review and process notices under the Customs Law; and to integrate and participate in the Customs Council.
Administrators of Legal Support for Foreign Trade Audit ‘1’ and ‘2’ are delegated narrower authorities limited to requests for economic, financial and banking information and to the review and processing of notices under the Customs Law.
The Central Administrators of Foreign Trade Investigation and Analysis, Special Foreign Trade Operations, and Audit of Foreign Trade Operations; their dependent administrators; decentralized administrators of foreign trade audit; and their administrators and deputy administrators are delegated authorities to request economic, financial and banking information; access, online and in real time, taxpayers’ systems and records to determine compliance with obligations; use technological tools during proceedings; and inform taxpayers and governing bodies of facts or omissions that may indicate non-compliance in the exercise of verification powers.
The Central Administrator of Certification and International Affairs of Foreign Trade Audit is delegated solely the authority to integrate and participate in the Customs Council.
Article Three – Delegations to officials of the General Administration of Large Taxpayers
Authorities are delegated to the General Administrator of Large Taxpayers and to the heads of certain administrative units, with a particular focus on regulated financial institutions and large taxpayers. Delegations also extend to the Central Administrators of Audit of the Financial Sector, Audit of Corporate Groups, Audit of Diverse Large Taxpayers, International Audit and Transfer Pricing. For institutions operating as electronic payment funds and crowdfunding institutions (Fintech), competence remains with the General Administration of Large Taxpayers until the year following the year in which such institutions cease to meet the criteria for being considered large taxpayers, and for audits already initiated, competence is retained until a final resolution becomes definitive, including appeals and defense of the fiscal interest.
Delegated powers include: (i) requesting economic, financial and banking information from taxpayers, joint and several obligors and third parties, following order and methodology that allow transactions, acts or activities of the reviewed taxpayer to be linked for offsite review; (ii) accessing, online and in real time, taxpayers’ systems and fiscal records regarding their tax obligations; (iii) requesting identification and contact information for governing bodies and legal representatives of legal entities; (iv) authorizing the use of technological tools (photography, audio and video) during proceedings; and (v) informing and disclosing facts or omissions detected in audits that may indicate potential non-compliance, including disclosure in provisional resolutions of electronic audits.
These authorities are exercised only with respect to a defined subset of taxpayers rather than the entire universe of taxpayers. The category includes taxpayers considered “large” based on revenue and economic relevance; those with sophisticated financial operations; and those with significant international operations, including transfer pricing and international tax planning. Other affected taxpayers include banks, broker-dealers, bonding companies, general warehouses, regulated financial companies, multiple-purpose financial companies, specialized credit entities, among others.
Article Four – Delegations within the General Administration of Hydrocarbons
Authorities are delegated to the General Administrator of Hydrocarbons and to the Central Administrators of Hydrocarbon Verification and Hydrocarbon Audit, as well as their dependent administrators, to: (i) request economic, financial and banking information from taxpayers, joint and several obligors and third parties, following order and methodology that link the reviewed taxpayer’s transactions, acts or activities for offsite review; (ii) access, online and in real time, taxpayers’ systems and fiscal records; (iii) request identification and contact information for governing bodies and legal representatives of legal entities; (iv) authorize the use of technological tools (photography, audio and video) during proceedings; and (v) inform and disclose facts or omissions detected in audits that may indicate potential non-compliance, including disclosure in provisional resolutions of electronic audits.
These delegated authorities are exercised with respect to taxpayers in the hydrocarbons sector — those engaged in activities involving hydrocarbons and refined petroleum products — including State productive enterprises and their subsidiaries, as well as domestic and foreign private companies participating across the energy value chain. Taxpayers in this sector may not always qualify as large taxpayers by revenue; selection criteria are sectoral and based on fiscal risk rather than revenue or general economic relevance.
Article Five – Delegations within the General Administration of Taxpayer Services
Authority is delegated to the General Administrator of Taxpayer Services, to the Central Administrators of Registry Operations and Interinstitutional Program Services, to their dependent administrators, and to decentralized administrators and deputy administrators of Taxpayer Services, to deny registration in the federal taxpayer registry (RFC).
Article Six – Continuity of existing delegations
SAT officials may continue to exercise powers under SAT’s Internal Regulations and prior delegations granted by other agreements, without prejudice to the delegations made under the present Agreement.
Implications and recommended actions
An increase in audit activity is expected. We recommend addressing audit notices promptly and strategically from the outset. Baker McKenzie has a multidisciplinary team of attorneys, accountants and economists with deep experience in responding to audits in a timely manner. We invite you to schedule a meeting with our team to discuss appropriate compliance strategies for your organization and to be prepared in the event of an audit.