Amexipac Newsletter March 2016

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MARCH 2016

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AMEXIPAC.ORG

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NUMBER 13

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AMEXIPAC NEWSLETTER

TECHNICAL GLOSSARY:

LEARN ABOUT THE DATA STRUCTURE OF ANNEX 20 /P.-12

E L E C T R O N I C TA X AT I O N E X P E R T S

beyond the Electronic Invoice /P.-05

Rules

In 2016

for issuing e-invoices v3.3

increase of taxpayers obligated to submit E-Accounting

/P.-03

/P.-13

Are you familiar with the 2016 economic package?

Living united is human development?

/P.-15

/P.-17


ARTI CLE 01

2016 CFDI

SUPPLEMENTS Juan Manuel Montoya TRALIX

Since the beginning of digital tax receipts via Internet (comprobantes fiscales digitales por internet or CFDI), a majority of tax verification scenarios has been tried to be covered, although it has been a great effort, there are still cases where the base information of the CFDI contained in Annex 20 of the Miscellaneous Tax Resolution (Resoluciรณn Miscelรกnea Fiscal or RMF) in effect is not sufficient or does not incorporate the necessary information of interest for the Mexican Tax Authority (Servicio de Administraciรณn Tributaria or SAT); thus the reason for CFDI supplements. The supplements, as the name indicates, consist of supplemental information for specific tax verification cases. Cases that require specific and specialized information of the title under which one operates must not be confused with the addenda, which are business information between the client and the vendor; this information is of no interest for the SAT and is not considered for the generation of the hash value (cadena original) or seal. Conversely, the supplements are official by the SAT, they are mandatory and ultimately included in the hash value and seal of the CFDI to form part of the tax stamp.

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Presently, there are over a dozen supplements, including supplements to the main document and supplements to concepts. We can observe in the list below the existing supplements at 2014 and those recently published in 2015:

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For 2016, the SAT has announced the publication and start of operations of 8 new supplements, 7 at document level and 1 at concept level. Below is a list of the new supplements for 2016:

2016 SUPPLEMENTS SUPPLEMENTS AT 2014

CONCEPT SUPPLEMENTS AT 2014

1. Foreing trade 2. National Electoral Institute (INE). 3. Payments. 4. Travel expenses. 5. Notary publics for deed transactions. 6. Consortium expenses for the exploration or extraction of hydrocarbons. 7. Income of the consortium members for the exploration or extraction of hydrocarbons.

2016 CONCEPT SUPPLEMENTS 1. Report of payments made through a trust to pensioners.

SUPPLEMENTS PUBLISHED IN 2015

SUPPLEMENTS TO BE UPDATED IN 2016

1. Partial construction servises. 2. Vehicle renewal and replacement. 3. Certificate of destruction. 4. Visual art works and antiques.

1. Notary publics - the encubrance of real property is included.

CONCEPT SUPPLEMENTS PUBLISHED IN 2015 1. Excise tax (Impuesto Especial sobre Producciรณn y Servicios pr IEPS) credit.

SUPPLEMENTS UPDATED IN 2015 1. Statement of account of electronic wallets for fuel.

It is important to note that new supplements will continue to be added as particular cases that require it are identified. Far from being bad news, it is excellent practice, since it will allow us to officially and mandatorily include information that is currently required but that not everyone includes since it is not an obligation.


ARTI CLE 02

Utility of catalogues in the E-invoice Sergio José Villaneda Ávila INTERFACTURA

During the last years, we have witnessed the constant evolution of the tax regulatory mechanisms in Mexico, the manner in which we have access to information, and the simplicity of the procedures and services for its management by using Information Technologies. This faces us with a series of difficulties given the exponential increase in the amount and diversity of information we generate and manage every day, its relation, and the manner in which we use it for making efficient and correct decisions. Therefore, it is necessary to direct future technological efforts to ensure information quality as an instrument of Electronic Tax Auditing. Presently, the main problems that degrade information quality in information systems are the following: • MANUAL ENTRY OF INFORMATION BY USERS IN THE ERP SYSTEM OF ISSUER TAXPAYERS, which leads to mistakes, semantic and

typographical entry errors.

• INCORPORATION BETWEEN THE ERPS WITH THIRD PARTY SERVICES FOR ISSUING E-INVOICES, where the information is extracted,

transformed, and loaded; causing syntax errors, data form errors, conversions, and duplicates. For that end, the Mexican Tax Authority (SAT) is proposing to use information catalogues in a ributes of the CFDI. Between the most relevant we can find zip codes associated with the place of issue of the CFDI, applicable methods of payment, currencies, methods of payment, taxation regimes, both of the taxpayer issuer and recipient, states, municipalities, cities, and neighborhoods, countries, rates, and tax fees, as well as customs codes. Additionally, the SAT proposes to validate the Federal Taxpayer Registry Code (Registro Federal de Contribuyentes or RFC) corresponding to the recipient taxpayer in the RFC catalogue, registered with the SAT if the country of residence for tax purposes is Mexico. Otherwise, the Tax Identification Number must be validated in the catalogue of foreign tax registry forms published by the SAT. Implementing information catalogues in the e-invoice issuing process is going to force all information systems that participate in the process to include useful, homologated, and above all, correct information. It will allow taxpayers to share liability for the conformity, consistency, accuracy, coherence, and integrity of the information they generate, thus simplifying their tax burden and facilitating the analysis of tax regulations and the review of their compliance for the SAT, and it will streamline the request processes for credit balance refunds.

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ARTÍCULO 03

Payroll CFDI and its relation to labor matters Gil Ramírez Angulo PEGASO

As we all know, as of this year it is mandatory for employers to issue payroll CFDIs resulting from the working relationships with their workers. Without a doubt, this has been one more evidence of the technological advances with which we have been going deeper into the DIGITAL CULTURE and leaving behind the old ways of doing things.

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In relation to the foregoing, the Federal Labor Law (Ley Federal del Trabajo or LFT), also underwent a series of amendments where these progresses of science can be observed, as in the case of the acceptance of “electronic documents and the digital signature”, as means of proof, including in this definition, of course, pay slips in the form of a CFDI.

This new tax regulation has many advantages, whether we observe them holistically or globally; but if we observe them from a “Ceteris Paribus” view, we could even mention a series of areas of opportunity regarding this schema of pay slips in the strict labor field.

From my point of view, the LFT is not, in a manner of speaking, entirely in line with the new schemas for using electronic documents. Let’s imagine that we are required to submit this CFDI in a labor proceeding; this would obligate us to observe and apply the provisions of Articles 836-C and 836-D of said law, whose applicable parts are mentioned below:

ARTICLE 836-C.

The party offering any electronic document or any electronic means shall comply with the following: I.- Submit a printout or copy of the electronic document and; II.- Enclose the minimum data for locating the electronic document in the electronic means in which it is found.

ARTICLE 836-D.

The following rules will observed at the hearing for electronic means: I.- The Board will appoint the expert or experts required in order to determine if the information contained in the electronic document is complete and unaltered, just as it was generated from the beginning, locating such information in time and space between the issuer and the recipient.

The above makes us formulate the following questions: The payroll CFDI has validity and its own autonomy because of its nature, it was stamped by a PAC, therefore: Why submit it in a printed version as evidence in a labor proceeding? Why not submit in its XML and PDF format? Why does an expert have to examine it to determine that its content is complete and unaltered? Given that it was stamped by a PAC, does it not vest it with the necessary characteristics to be considered that it was not altered and maintains its original content? In addition to acknowledging the existence of electronic documents, I consider it necessary for the LFT to modify the manner in which it requests its receipt as evidence in labor proceedings, adjusting to its nature, which is being a CFDI, which consists of an XML file and has a printed version in PDF format. Hence, as is my custom, I leave the questions mentioned in these lines for the reader’s free consideration.

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FRON T ART IC L E

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Electronic Documents: beyond the E-invoice Nelly V. Maldonado AMEXIPAC

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Presently, the Mexican Tax Authority (SAT) has two regulated concepts of third parties that assist in electronic taxation, which provide several services:

PACCFDI

Authorized Certification Service Provider of E-invoices (Proveedor autorizado de certificación de comprobantes fiscales digitales a través de internet).

Electronic Invoice and its Supplements

Electronic Payroll

PACRDD

Electronic Withholdings

Authorized Certification Service Provider of Digital Documents (Proveedor autorizado de certificación de recepción de documentos digitales).

Electronic Accounting

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Electronic Tax Returns


Although the name of each concept is different in tax regulations, today the market recognizes PAC companies as intermediary entities that provide electronic taxation and business value-added services. Therefore, the acronym PAC is already a benchmark that encompasses companies: 1. Authorized, regulated, and audited by the SAT, for the offer of electronic taxation services to the general public. 2. Certified digital communication service providers: - Autentication - Non-repudiation - Confidentiality - Data Integrity 3. Backed-up with investments over 10 million pesos and collateral with the Federal Treasury, TESOFE, to prove their technical and legal solvency.

In the medium term, over 300 tax procedures and services will be available online in coordination with the Digital Tax Inbox (Buzón Tributario), through the SAT’S website, and also through PAC companies. The use of the services of a PAC company is optional for any taxpayer, given that to comply with its obligations, the taxpayer can always enter the SAT’S website and use the free tools available. However, today, 90% of the country’s e-invoices are processed through PAC companies; hence users state their preference in the use of customized solutions that PACs have developed for the market, where they find business added values for their management efficiency and collection agility. The multiplicity of communication windows that the PACs represent to the SAT is a technological strength that benefits all users. The success of the robust platform currently in place with the collaboration of the public and private sectors, has three key elements: 1. XML: Universal, non-proprietary, open-language technological standard. 2. E-signature (formerly Advanced Electronic Signature). 3. PAC Certification

Through PAC companies, taxpayers can find: 1. Alternative applications for all systems that streamline compliance. 2. Integration of their management and accounting processes. 3. Reduction of data-entry errors by manual processes. 4. Time savings for generating, sending information, and receiving acknowledgements of receipt. 5. Guarantees for the protection of their personal data and sensitive proprietary information, in view of the cryptography of PAC solutions, strict compliance with applicable regulations, and agreement with international standards on information security, such as ISO27001.

Certified electronic documents are an additional step in the evolution of the Mexican tax authority, which for some years has been placed as a national leader of e-government, and it continues developing a secure, sustainable, efficient, and expeditious model for offering online public services.

The e-invoice has become a national benchmark for electronic transactions that confirms on a daily basis its strength with operational continuity and volumetric expansion. Con la habilitación de los Proveedores Autorizados de With the authorization of Authorized Certification Services Providers of Digital Documents, PACRDD), a new portfolio of PAC services opens, beyond the e-invoice, for the certified communication of electronic documents. Currently, the electronic documents that can be sent through the PACRDDs are the Supplier's VAT Return (Declaración de proveedores del IVA or DPIVA) and soon, electronic accounting.

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Digital Services

Expo trade show

SAT

‘’We have a great imperative: To change the paradigm and be open to receiving help from third parties, many of these procedures (governmental) that we have today may be carried out by third parties, turning them into true intermediaries between the public sector and the citizen.‘’ Head of the SAT

Aristóteles Núñez Sánchez December 16, 2015

VIDEOS

Conference: Strategy providers with use of the digital documents

Panel: Digital vision of services

Mensaje AMEXIPAC, A.C.


SAT ART ICLE

The increases the use of information technologies In recent years, the Mexican Tax Authority (SAT) has chosen to promote the intensive use of technologies, with the purpose of facilitating compliance with tax obligations, while focusing its tax audit activities on those taxpayers that do not want to act in accordance with the law. In this year, the role of sectors such as the business sector, accountants, the Taxpayer Protection Agency (ProcuradurĂ­a de la Defensa del Contribuyente), the Mexican Association of Authorized Certification Service Providers and, in general, the developers of systems, has been fundamental, since they have become allies of the authority by supporting, for example, the issue of e-invoices by sending e-accounting, and also by expressing their points of view, which has allowed assessing tools that enable tax simplification. In these efforts to make compliance with the tax authority easier and quicker, the portable version of the e-signature, formerly known as digital signature or FIEL, was launched during the second week of February, which may be used by the 7,765,630 taxpayers, personas fĂ­sicas, que al corte de diciembre contaban ya conatural persons who at December already had this authentication means. The elimination of the Annual Client and Supplier Tax Return, known as official Form 42, was also announced as from this year, measure that is possible given the information included in the invoices and the e-accounting submi ed by the taxpayers, with which they will save time and costs. In this context, the measures announced by the Secretary of Finance and Public Credit, Luis Videgaray Caso, gain exceptional relevance for accelerating refunds: a parametric model of quick refunds and a pre-filled Annual Tax Return in income and expenses.

Both models are based on the SAT’S trust on the citizen and vice versa, and their purpose is to transform a traditional service, which implicated many procedures for the citizen, into a modern service that reduces costs and time. One third of the 32,000 taxpayers that usually submit a request will be benefited with the parametric model of quick refunds aimed in a first stage at small and medium-sized enterprises with a monthly credit balance of one million pesos; the foregoing without need for any formality, in such a way that it is estimated that ,230 million pesos will be automatically refunded. This is possible since the authority gathers the necessary information from the e-invoice, e-accounting, and Digital Tax Inbox, which allows it to establish a statistical model of risks and to identify if a credit balance applies for a taxpayer and to make the refund within five days. On the other hand, with the pre-filled Annual Tax Return, which places Mexico at the cu ing edge in Latin America, the SAT offers taxpayers with salary income, a proposal for a return based on the information of the payroll certificate and invoices requested upon making a deductible expense. This model will benefit a great number of taxpayers in the first week of April, who will only have to enter the SAT’S website, check that their information is correct, and accept the Tax Return. In the first stage, it is aimed at salaried employees, but it is expected that it will be replicated with those with income from leases, professional services, and business activities. Thus, the SAT will continue working to make available easy, simple, and free tools to the taxpayers so they can comply.

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ARTI CLE PR EN SA

Collaboration Agreement between AMEXIPAC and the IMCP - Execution of Collaboration Agreement - Training Programs - Inter-institutional Projects Mexico City, Wednesday, February 17, 2016.The Mexican Association of Authorized Certification Service Providers, AMEXIPAC, A.C., a ended the monthly press conference of the Mexican Institute of Public Accountants (Instituto Mexicano de Contadores Públicos or IMCP) to sign the collaboration agreement between the two organizations. AMEXIPAC groups companies authorized by the Mexican Tax Authority (SAT) for the provision of electronic taxation services and concentrates the supply of value-added technological services aimed at business efficiency.. During the event held at the Club de Industriales in Mexico City, the chairman of the IMCP, CPA Leticia Hervert Sáenz, and Board Member of AMEXIPAC, Jesús Miguel Pastrán Rodríguez, signed the collaboration agreement. Mr. Ernesto O’Farrill, Chairman of IMCP’s Economic Analysis Commii ee, Dr. Guillermo Barnes, IMCP’s adviser, and Mr. José Saborit, leader of Public Relations of the IMCP, witnessed the signing of the agreement. Public accountants play a strategic role as business advisers in all economic sectors and activities; therefore, it is essential to offer the support of experts on tax technology, so that public accountants may have, through this collaboration between the IMCP and AMEXIPAC, the most up-to-date information on electronic taxation and value-added solutions for operating electronic-based businesses. Presently, the SAT has two regulated concepts of third parties that assist in electronic taxation, which provide several services:

PACCFDI Authorized Certification Service Provider of E-invoices

E-invoice and its supplements E-payroll

Electronic Withholdings

PACRDD

Authorized Certification Service Provider of Digital Documents

E-accounting Electronic Tax Returns

With the authorization of PACRDDs, a new portfolio of PAC services opens with electronic documents. Currently, the electronic documents that can be sent through the PACRDDs are the Supplier's IVA Return (Declaración de proveedores del IVA or DPIVA) and soon, electronic accounting, as well as over 300 procedures and services that the SAT plans to make available directly online through PAC companies. Among the projects that will be launched and worked in conjunction between the two organizations are training programs on electronic tax technology, as well as the analysis and promotion of initiatives that streamline tax compliance. These inter-institutional projects contribute to the continuous improvement of business operations in Mexico.

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DO Y OU K NO W ?

Technical Glossary: Learn about the data structure of Annex 20 Francisco Javier Velasco QUADRUM

The following glossary is a compilation of the most important terms you must know to better understand document Annex 20, which specifies the rules of the SAT for generating Digital Tax Receipts via Internet (CFDIs). It is worth noting that the compilation was made based on the author’s criteria of significance; however, if you would like further information on the subject, please refer to Annex 20 provided by the SAT.

A Attribute (Atributo)Part of the elements of an XML that provides more information on the XML elements. Usually used for defining the properties of the elements; the values of the a ributes must always appear in quotation marks.

E Element (Elemento)Building blocks of an XML; can behave as a container to hold text, elements, a ributes, media objects, or all of these. An XML document has one or more elements, the boundaries of which are delimited by start-tags and end-tags.

Schema (Esquema)Structure of an XML document; it validates the correctness of data types for each XML element and a ribute.

N Addenda Node (Nodo Addenda)Node to receive additional information of a CFDI that is useful for the taxpayer.

Supplement Node (Nodo complemento)Node to mandatorily include the Digital Tax Stamp and the supplements determined by the SAT.

CFDI Node (Nodo Comprobante)-

Withholding Node (Nodo RetenciĂłn)-

Root node of the CFDI or XML. Standard for digital tax receipts (CFDIs).

Node for detailed information of the withholding of a specific tax.

Concept Node (Nodo Concepto)-

Pass-through Node (Nodo Traslado)-

Node to enter detailed information of a good or service.

Node for detailed information of the pass-through of a specific tax.

Concepts Node (Nodo Conceptos)Node required to list the concepts included in the CFDI.

Tax Address Node (Nodo Domicilio Fiscal)Specifies the location information of the issuer’s tax address.

Address Node (Nodo Domicilio)Optional node that defines the location of the receipt of the CFDI.

Issuer Node (Nodo Emisor)Node required to express the information of the taxpayer issuing the CFDI.

IssuedAt Node (Nodo ExpedidoEn)Optional node that specifies the location information of the address where the CFDI is issued, if other than the issuer’s tax address.

Taxes Node (Nodo Impuestos)Node required to enter the applicable taxes.

Customs Information Node (Nodo Informacion Aduanera)-

V Validation (ValidaciĂłn)Process by which an XML document is validated. An XML document is said to be valid if its contents match with the elements, a ributes declared in an XSD file, and if the document complies with the constraints expressed in the XSD.

X Well-formed XML (XML bien formado)An XML is “well-formed� when it complies with a series of rules described in the specifications.

XML-

Optional node to enter customs information (for first sales of imported merchandise).

Extensible Markup Language. Standard for pu ing structured data in a text file.

Receipt Node (Nodo Receptor)-

XSD-

Node that specifies the information of the taxpayer recipient of a CFDI.

Formally describes the elements of an XML document. This description may be used to verify each element contained in the document.

Tax Regime Node (Nodo RĂŠgimen Fiscal)Node required to include the regimes under which the issuer pays taxes.

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IN SH ORT

In 2016, increase of taxpayers obligated to sumbit E-Accounting Stefania Cervantes EKOMERCIO

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T

he year 2015 has been a year of great changes in electronic accounting. We know that our taxing authority seeks greater control of taxpayer information and seeks to simplify its procedures and develop a healthier tax culture in our country. At the beginning of 2015, the SAT indicated that the minimum income limit for sending e-accounting of Natural Persons with Business Activities was

4 million pesos.

The Seventh Resolution of Amendments to the 2014 RMF established January 2016 as the initial period for sending the chart of accounts and account balance for: legal and natural persons with income less than four million pesos in 2013, legal and natural persons of the primary sector, non-profit legal persons, and legal and natural persons registered with the Federal Taxpayer Registry in 2014, 2015, or 2016. Up to September 2015, the taxpayers of the Leasing, Professional Services, and Tax Incorporation Regime with income less than 4 million pesos did not have to send their E-Accounting, provided that they reported their transactions in the electronic tool offered by the SAT in its website: My Accounts (Mis cuentas). Nevertheless, the number of persons who must send e-accounting as from 2016 increased with the publication of the Fourth Resolution of Amendments on September 29 of this year. Now, natural persons with business activities and professionals, companies, non-profit associations, and trusts authorized to receive deductible donations, and religious associations, have to keep their Electronic Accounting in systems that have the capacity to create files in XML format when their income is equal to or greater than two million pesos. We are sure that this significant change will result in the SAT having a more favorable tax collection, as well as a be er management of all of our information. This will allow the SAT to create new digital services, as it has already done, which facilitate sending our documents and accelerate our processes. The initial period for sending the chart of accounts and account balance is still the same, January 2016.

LES’T GET PREPARED!

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CULT URARTĂ?CULO A FISC A L

4

Are you familiar with the 2016

economic package? Victor RodrĂ­guez EDX SOLUTIONS

Dear reader, we hear the phrase “Economic Package� everyday; but really, what is it? It can be translated into the series of guiding criteria by means of which the Federal Government will be able to execute the National Development Plan. Hence the real existence of its need contained in our Political Constitution, specifically in numeral 74 of such law. Therefore, this past September 8 the Federal Government, through the Secretary of Finance and Public Credit, submi ed the Economic Package for 2016, which was approved during November and comprises: 1. Income Law. 2. Federal Expense Budget for 2016. 3. Economic Policy General Criteria.

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Having made the previous description and inclusion of the purpose of this article, below are the main ma ers that our rulers, on our behalf, have decided will foster the growth of our country for the following year. Likewise and as a prelude to this brief explanation, I can tell you in advance that on tax ma ers, the SAT has announced the need for its modernization to duly comply with the tax obligations of the taxpayers, providing a series of electronic tools to facilitate compliance with such obligations. Thus, for the next fiscal year 2016 and not oblivious to issues such as a deteriorated global environment, the drop in oil prices, and the changes in the Peso-Dollar exchange rate given the rise in interest rates in the United States, the fact is that our Federal Government has avoided the downturn of our economy and has maintained a certain purchasing power of our currency. Based on the above, the Economic Package is governed by the following:

2015

Evolution of the economy and public finance

2016

Perspectives economic and public finance outlooks

The aforementioned points can be understood as the series of amendments to our legislation (income, telecommunication, hydrocarbons law, etc.) for maintaining a macroeconomic stability for the benefit of the taxpayers to. Therefore, the following can be emphasized from the Economic Package:

1. No proposal for new taxes. 2. No increase to existing taxes. 3. Reduction of tax deficit, and 4. Adjustment of 41,500 million pesos to the public expenditure. Specifically with respect to the 2015 Federal Economic Package, the Congress of the Union granted additional resources to sectors such as agriculture, education, and health.

Regarding our subject ma er and through the Tax Incorporation Regime, it can be inferred that the SAT has managed to increase its tax collection base with the implementation of mechanisms that simplify the procedures for filing tax returns and verifying taxes. Finally, the Federal Government proposed and Congress has determined the feasibility of the tax and economic projects proposed, with which it complies with the constitutional obligation to budget the actions of our rulers for the following year, always observing an economic and social benefit for Mexicans

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ARTI CLE FON D O U N I D O M É X I C O

Living united is human development? Alfonso Villalva P. Fondo Unido MĂŠxico, FUM

Fondo Unido Mexico, FUM, is a private assistance institution with more than 36 years of experience in Mexico. Its aim is to achieve community impact through linking businesses and individuals to create long-term social change. FUM is part of the global network of United Way Worldwide, the largest global nonprofit organization of community impact, volunteer-driven, with a multisector and multidisciplinary approach. Thanks to its experience in handling standards for institutions and programs of corporate social responsibility, FUM provides the definition of best practices in the field, through which issues such as the following are addressed: Impact assessment, principles of financial responsibility and transparency, standards of operations and management, resource mobilization, among others. From this issue of our newsle er and on, FUM, will have a permanent space as a reference for our readers in corporate social responsibility. In this first introductory article, we have an editorial collaboration of the Chairman of the Board, Alfonso Villalva P. More information about FUM, available at: fondounido.org.mx

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In national and international debate, at any level of depth of the analysis observed, from big round tables of social, academic, political, and business leaders – to postprandial family conversations where you and I normally participate-, it is common to find, as a tangible activity, the challenge of equity for development, not only with respect to gender, but also for different geographical, ethnic, ideological, physical, and mental characteristics.

T

The concepts of equity have permeated the environment and perhaps have made us more sensitive to the difficulties we face as a community to create functional conditions where each person can develop all his potential focused on his aspirations, convictions, particular dreams. This fact, by itself, already represents a positive sign in the construction of a society that motivates all its members equally. Without a doubt, one of the main challenges when faced with any social problem is the awareness of the individuals regarding its existence, and the assimilation, by the individuals, of their role as agents of change and proposals. However, for many persons the question remains in the air: What can I do to produce results in my community? I want to, and, therefore, I can. But, how do we move from this coffee talk or from this technical reading with which many of us appear to agree, to action? An action where I can be a spokesperson, mentor, partner, or activist so that my daughter, my neighbor, the lady at the food stand, or myself, can find the space we deserve in our neighborhood, work team, family circle? It is not surprising that the greater the awareness of the social challenges, indicators so robust and revealing such as Human Development and Gender Inequality indicators, show positive and encouraging trends in general, and practically in all regions of Mexico, with some unfortunate and pressing exceptions. Being informed of the phenomenon, embracing it as part of our daily lives is, by itself, a fact that constitutes a pillar of transformation. The task seems monumental, evidently, to reinforce these trends and turn them into a radically positive change. So, what do you do to influence such trends? It seems difficult. However, every time that you, as a volunteer or social investor, read out loud to a child, explain to a teenager his rights, get involved in the search for quality education for everyone, or contribute to building a school, upon their enlightenment, you are promoting the next step, solid and irreversible, in the specific direction of a positive trend of all indicators.

It is very clear that the unacceptable situation of high marginalization that is still occurring in entities like Oaxaca, Guerrero, Chiapas, Veracruz, among other states, is also correlated with the Development gab between women and men in the same geographical conditions, where appropriate and objective public policies that respect the community culture are required urgently, and, particularly, with a long-term view. Although true, the actions and leadership of community members is not less important. Perhaps, as a ma er of fact, it is the opposite, as such visionary and rewarding leadership of the citizens is what defines, inch by inch, the idea of a community crucible where, at the end of the day, all of us that form part of each social group converge, including those who presently have one or another responsibility. I have always been convinced that a community’s success determines our success, and not vice versa. In the neighborhoods, towns, groups, and teams in which I have had the privilege to witness a widespread involvement for the general structural well-being, I have also been able to observe the happiest faces, the most satisfactory smiles. The tangible manifestation of this development, which includes all of us, which leaves no one behind. Thus, living united, for a group development that includes everyone with an opportunity. One for each person, at least, according to his needs, weaknesses, capabilities, and circumstances. A development based on a common denominator where we all coincide because of our quality of human beings, which creates this unambiguous base of certainty for exercising our rights firmly, but with responsibility, to follow our dreams, to think and to believe in what we want to believe, respecting the dreams and believes of others. No one should be le behind. No physical or mental difference or difference in gender or in the degree of vulnerability should prevent us from living united to change once and for all, freely and with collective pride, all indicators.

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NEW S

Get acquainte with the SAT! Nelly V. Maldonado AMEXIPAC

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The Mexican Tax Authority (Servicio de Administración Tributaria or SAT) is a deconcentrated administrative agency of the Ministry of Finance and Public Credit (Secretaría de Hacienda y Crédito Público or SHCP). The SAT was created on December 15, 1995 by the publication of the Tax Administration Service Law (Ley del Servicio de Administración Tributaria) and it began operations on July 1, 1997. The SAT replaced the operations of the Revenue Subsecretariat (Subsecretaría de Ingresos). Throughout its 18 years of existence, the SAT has had a rapid evolution that distinguishes in the Federal Public Administration, and today it is a leading government agency in the use of electronic means.

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General Collections Administration

Deconcentrated collections administrations

Deconcentrated Collections sub-administrations

General Customs Administration

Customs administrations

Customs sub-dministrations

General Administration for Federa Tax Auditing

Deconcentrated administrations for tax auditing

Deconcentrated sub-administrations for tax auditing

General Administration for Foreign Trade Auditing

Deconcentrated administrations for foregn trade auditing

Deconcentrated sub-administrations for foregn trade auditing

General Taxpayer Services Administration

Deconcentrated administrations for taxpayer services

Deconcentrated sub-administrations for taxpayer services

Legal General Administration

Deconcentrated Legal Administrations

Deconcentrated Legal Sub-administrations

General Administration for Large Taxpayers

Head of the Mexican Tax Authority

Internal Control Body within the SAT

General Hydrocarbons Administration

Planning General Administration

Resources and Services General Administration

General Communications And Information Technologies Administration

General Administration for Evaluation

21 - A M E XI PAC NEWS LETTER - MA RCH 2016


STRUCTURE For its operation, the SAT is organized in the following manner:

I. Head II. Internal Control Body III. Central administrative Units 1. General Collections Administration. 2. General Customs Administration.. 3. General Administration for Federal Tax Auditing. 4. General Administration for Foreign Trade Auditing.

5. General Administration for Large Taxpayers. 6. General Hydrocarbons Administration. 7. General Taxpayers Services Administration. 8. Legal General Administration. 9. Planning General Administration. 10. Resources and Services General Administration. 11. General Communications and Information Technologies Administration.

12. General Administration for Evaluation. Each general administration has in turn Central Administrations and in some cases Coordinations in order to accomplish their objectives.

IV. Deconcentrated Administrative Units (previously local and regional Administrations). V. Customs.

NEW INTERNAL REGULATIONS This past August 24, 2015 the new Internal Regulations for the SAT were published, in which the following aspects facing taxpayers and PACS stand out: GENERAL TAXPAYERS’ SERVICES ADMINISTRATION

The central administrations for the Interinstitutional Programs for Services, for the Promoting Formality and for the Management of Services and Processes in Foreign Trate ma ers, and changed the names of the central administrations for the Operation of Services Channels, for Quality Management, for the Identification of Taxpayers, and the National Coordination of Local Administrations of Taxpayer Services for those of the central administrations for Taxpayer Legal Aid Services, for Management of Services and Processes through Electronic Means, for the Operation of the Registry and the National Coordination of the Deconcentrated Administrations of Services to Taxpayers, respectively. GENERAL COMMUNICATIONS AND INFORMATION TECHNOLOGIES ADMINISTRATION

The name of the Central Administrationof Services for that of the Central Administration of Business Solutions.

ADMINISTRATIVE UNITS CLOSE TO PAC OPERATIONS The authorized certification providers, PAC, have frequent interaction with two of SAT’s central administrative units: General Taxpayers’ Services Administration, (Administración General de Servicios al Consumidor or AGSC) and General Communications and Information Technologies Administration, (Administración General de Comunicación y Tecnologías de la información or AGCTI). Likewise, the General Management of Services and Processes through Electronic Means Administration,(Administración General de Servicios de Comunicación y Trámites con Medios Electrónicos or AGSCME, created in august 2015, which depends on AGSC, is specialy relevant for the PAC, since it is in charge of supervising the PACCFDI and PACRDD concepts, as well as anything related to electronic media for tax ma ers, as its own name clearly indicates. The general information for said administrative units is presented below: GENERAL TAXPAYERS’ SERVICES ADMINISTRATIO, AGSC

Incumbent: Guillermo Valls Esponda Objective: Set forth regulations, to provide the paxpayer with the services of information, guidance, specialized technical assistance and receipt of tax procedures in order to ease in his voluntary, correct and timely compliance of his taxpayer Obligations before federal tributary authorities. Integrate, update and operate the registry for the Federal Taxpayer Registry, the records and other registries stipulated within the tax, foreign trade and customs legislations, as well as regulate and process authorization requests for the receipt of tax deductible donations, and requests to act as certification provider and of third parties to receive digital documents, and collaborate within the scope of its jurisdiction in the prevention and identification of transactions with illegally obtained resources. CENTRAL ADMINISTRATION FOR MANAGEMENT OF SERVICES AND PROCESSES THROUGH ELECTRONIC MEANS, AGSCME

4. Propose strategies to promote the use of electronic means of payment, digital tax proof over the Internet or CFDI, and other programs that aid in the taxation process. 5. Develope, put in place and regulate the operation of CFDI’s and the advanced electronic signature, and that of electronic documents in the taxpayer services. 6. Postpone, develope, regulate and put in place the use and improvement of electronic means, in the services directed to taxpayers. 7. Decide upon authorization requests to act as a certification provider for the processes determined in the tax regulations under the responsibility of SAT, as well as, when adminish, warn, revoke, nullify, not renovate or inform of the expiration of said authorizations. 8. Order and performe visits on the taxpayer’s premisis, in order to verify his compliance with the tax obligations.

GENERAL COMMUNICATIONS AND INFORMATION TECHNOLOGIES ADMINISTRATION, AGCTI

Incumbent: Juan Manuel Galarza y Mercado Objetive: Provide and manage services in ma ers of communications and information technologies that aid taxpayers in the fulfillment of their fiscal obligations, and the Mexican Tax Au hority’s responsibilities, in order to strengthen collections.

For more information, access the Internet website of SAT www.sat.gob.mx where in their Recent News column you may be informed of the operations of this governmental organizm

Sources: Manual de Organización General del Servicio de Administración Tributaria Publicado en DOF el 05 de enero de 2016 http://dof.gob.mx/nota_detalle.php?codigo=5404927&fecha=24/08/2015 Reglamento Interior del Servicio de Administración Tributaria Publicado en DOF el 24 de agosto de 2015 http://dof.gob.mx/nota_detalle.php?codigo=5404927&fecha=24/08/2015 Portal del Servicio de Administración Tributaria www.sat.gob.mx

Incumbent: Fernando Martínez Coss The AGSCME is one of the central administrations that depends from the AGSC and is specially relevant for the authorized certification providers PAC, because it is in charge of supervising the PACCFDI and PACRDD concepts, as well as anything related to electronic media for tax ma ers, as its own name clearly indicates. - Authorities: 1. Receiving from individuals all the documentation to which they are bound by tax and customs laws which shall not be presented in other SAT administrative units. 2. Receive, process and decide upon request for information that is under its jurisdiction, made by other authorities. 3. Request the General Collections Administration publish on SAT’s web page the information of noncompliant taxpayers.

M AR C H 2 0 1 6 - A M E XI PAC NE W S L E T T E R - 22


ARTI CLE AS O C I A C I Ó N M EX I C A N A D E P R O V E E D O R E S D E E S A C I O N E S D E S E RV I C I O

What are the requirements for invoicing the products we sell or buy? Ricardo Boué Iturriaga Asociación Mexicana de Proveedores de Esaciones de Servicio, AMPES

Under tax regulations, it is important to invoice the products that we sell or buy, and this is relatively easy with all the electronic invoicing programs available in the market. However, there are some products, such as gasoline and Diesel Fuel, which comprise their price differently from other products, as there is a portion in the price of these fuels that is not subject to IVA, that is, it does not include IVA. This is due to the fact that the price of fuels includes a tax called Excise Tax (Impuesto especial sobre producción y servicios or IEPS), which has special regulations and which are discussed in this document.

Background EXCISE TAX (IEPS) This tax became effective on January 5, 2008 in the sales of Gasoline and Diesel. It is not a taxable tax, that is, there is no VAT applicable to it. Also, IEPS is calculated on fixed fees, which vary from one fuel to another, and for 2016 these fees will vary from month to month in accordance with a table published in the month of December. Therefore, the amounts of IEPS per liter, divided according to fuel for 2016 will be as follows:

MONTH MAGNA PREMIUM DIESEL

January

February

March

April

May

June

0.36669

0.367

0.3671

0.3672

0.3673

0.3674

0.3675

0.3675

0.3676

0.4476

0.4477

0.4478

0.448

0.4481

0.4482

0.4483

0.4484

0.3045

0.3046

0.3046

0.3047

0.3048

0.3049

0.3049

0.305

23 - A M E XI PAC NEWS LETTER - MA R CH 2016

July

August

September

October

November

December

0.3677

0.3678

0.3679

0.4485

0.4486

0.4487

0.4489

0.3051

0.3052

0.3052

0.3053


HOW DOES THIS AFFECT THE INVOICING OF FUEL? Since the IEPS is a tax, which is VAT exempt, the estimate must be made by omi ing the IEPS from the price per liter of fuel, that is, we must separate the exempt part that is subject to IVA:

IEPS Parte Gravable

Step 1: Obtain the amount of the IEPS

As previously mentioned, the IEPS paid for fuel is a fee per liter, which, for December 2015 was 0.3044 for Diesel; therefore, we will multiply the fee by the liters of this fuel acquired:

IEPS Generated = 567.000 LITERS * $0.3044 =

$172.59

Step 2: Obtain the taxable total

Once you have the IEPS or the exempt portion, it is easy to obtain the taxable total, that is, the portion subject to 16% VAT. We just have to subtract the IEPS generated for the acquisition from the Total amount of our Receipt:

Taxable Total = $8,051.40 - $172.00 =

$7,878.81 However, this is not as simple as it seems, since the IEPS is not expressed separately in the invoices, as can be observed in the law of this tax (Ley del IEPS): h p://www.diputados.gob.mx/LeyesBiblio/pdf/78_241215.pdf

Step 3: Obtain the tax base

First, it provides in its Article 2-A

Tax Base = $7,878.81 / 1.16 =

Article 2.-A.- Without prejudice of the provisions of Article2, Section I, paragraphs D and H, the following fees will apply in the sale of gasoline and fuel in national territory: I. Gasoline with less than 92 octanes 36.68 cents per liter. II. Gasoline with less than 92 octanes 44.75 cents per liter. III. Diesel 30.44 cents per liter. Taxpayers will pass through in the price, to whoever purchases gasoline or diesel, an amount equal to the tax provided in this article, but in no event will they do it expressly and separately. The fees referred to by this article will not be computed for the calculation of the value added tax. And then, in its Article 19 Article 19.- The taxpayers referred to by this Law have, in addition to the obligations specified in the other articles thereof and other tax regulations, the following: II. To issue tax receipts, without the express and separate pass-through of the tax provided by this law, except for the transfer of goods referred to by paragraphs A, D, F, G, I, and J of Article 2, Section I of this Law, provided that the acquirer is, in turn, a taxpayer of this tax for such goods and if the taxpayer so requests it. Thus the IEPS forms part of the total amount and of the retail price of the product.

To obtain the tax base we need to divide the taxable total between 1.16 to obtain the amount before VAT.

$6,792.08

Step 4: Obtain the IVA

We have two options for this step, one is to multiply the base by 16% and the second one is to subtract the tax base from the taxable total, which will allow us to know the VAT of the product we invoiced.

IVA = 6,792.08 * 16% = $1,086.73 IVA = 7,878.81 – 6,792.08 = $1,086.73 Step 5: Obtain the Unit Price

For this step, we will follow steps 2 and 3, but we will use the price per liter of fuel and at the end we will add the IEPS.

Price = ($14.20 - $0.3044) / 1.16) + $0.3044 =

$12.2834

And, therefore, the Invoice would be as follows:

Quantity 567.000

Price $12.2834

Amount $6,964.67

INVOICING EXAMPLE Having knowledge of these factors, How is fuel invoiced? We will see this with the following practical exercise: We have our fuel receipt with the following information:

Liters: 567.000 Product: Diesel Total: $8,051.40 Date Dec/11/2015

Concept

Amount

Subtotal: IVA: Total:

$6,964.67 $1,086.73 $8,051.40

We have to remember that this is an example for invoicing Diesel. This calculation varies for other fuels as they all have different IEPS fees assigned to each of them.

M AR C H 2 0 1 6 - A ME XI PAC NE W S L E T T E R - 24


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EDITORIAL MANAGEMENT Nelly V. Maldonado | AMEXIPAC ART AND DESIGN HELLOID.NET AMEXIPAC.A.C. ÂŽ 2016 All rights reserved. This publication may not be reproduced or stored in whole or in part in a recovery system or transmitted in any way, whether by electronic, optical, mechanic, photocopy, magnetic, recording, or any other means, without the prior written authorization of AMEXIPAC, A.C. For any clariďŹ cation please contact us at the following email: info@amexipac.org.mx. The contents and information provided herein are integrated and/or developed only for information purposes and do not constitute a professional, tax, or legal opinion, hence AMEXIPAC, A.C. does not assume any liability on its use.


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