Relevant aspects of the 2022 miscellaneous tax resolution (RMF) in relation to the simplified trust regime for individuals (RESICO PF)

On December 27, 2021, the RMF 2022 was published in the Official Gazette of the Federation (DOF) which is effective as of January 1, 2022 (except in cases where a different date is indicated). Below are some of the most relevant aspects of the RMF in relation to the applicable rules for the RESICO PF (“the regime”) in force for income tax purposes (ISR):

The regime is a new applicable and optional regime for individuals resident in México, who their income do not exceed the amount of $ 3.5 million pesos and only carry out business or professional activities or grant the temporary use or enjoyment of assets, even if they also obtain income from salaries and interests, and including people who are currently taxed under the tax incorporation regime (RIF), regime of agricultural, livestock, forestry or fishing activities, so that the individuals of these regimes will migrate to the new simplified regime of trust, since these are removed. It applies progressive minimum rates that go from 1% to 2.5%, depending on the amount of income obtained per year. The requirements are minimal, while among the main obligations are to submit monthly payments and an annual tax return, considering only the Digital tax invoice (CFDI’s) that cover their activities, without including VAT and without applying any deduction; however, Informative returns will not be presented, and electronic accounting must not be kept.

• The RMF includes the rules applicable to the regime, in Title 3, Chapter 3.13: “Simplified Trust Regime,” specifically in the sections of 3.13.1 to 3.13.29.
• The application to the regime must be made no later than January 31 and should comply with the requirements of the procedure sheet 39/CFF “Request for registration in the RFC of individuals” in Annex 1-A of the RMF.
• The individuals of the Regime of Agricultural, Livestock, Forestry and Fishing Activities do not need to comply with the obligation to present the update notice of economic activities and fiscal obligations to be in the regime, since the fiscal authority will carry out the respective update based on the information as of December 31, 2021.
• Income obtained outside of the business activity will not be considered for the determination of the limit amount of $3.5 million pesos for the regime, under the requirements of the Law that are applicable for each type of income. Said extraordinary income is as follows:
  • Alienation of home
  • Prizes for scientific contests
  • Compensation and withdrawals
  • Transfer of assets by death, donation, or merger of companies
  • Acquisition by prescription
  • Awards
  • Default interest and compensation for damages
  • Income from personal retirement plans
• The provisions of the regime will not be applicable to taxpayers who stop paying taxes in the year in which the event occurs.
• System taxpayers who also obtain income from salaries and interest will separately determine the annual tax corresponding to said income.
• As a general rule, individuals who are partners, shareholders, members of legal entities or related parties will not pay taxes under the regime, except in the following cases:
  • Partners, shareholders, or members of legal entities with non-profit purposes, when they do not receive income from them for the distributable remainder.
  • Partners, shareholders, or members of the legal entities that administer funds or savings banks and savings and loan cooperatives, even if they receive interest from such legal entities.
  • Members of cooperative production companies made up solely of individuals, dedicated exclusively to agricultural, livestock, forestry, and fishing activities and those who fulfill their tax obligations on their own.
• Tax incorporation regime (“RIF”) taxpayers who opt for the regime will not be able to pay taxes again in the RIF, even though the maximum period of 10 fiscal years has elapsed.
• The individuals (and also the legal entities) of the regime will not have the obligation to send the electronic accounting and enter their accounting information on a monthly basis or present the Information Statement on Operations with Third Parties (“DIOT”) on the payment, withholding, crediting and transfer of VAT in operations with their suppliers.
• It is allowed to accredit the VAT corresponding to the performance of business or professional activities or the temporary use or enjoyment of goods when the expense is deductible for income tax (“ISR”), even though the expense cannot be applied in the determination of the monthly payment or in the annual declaration of the ISR.
• In the annual declaration for Fiscal Year 2022 or in the first fiscal year that is taxed in the regime, pending tax losses may be reduced from the total income received in the regime.
• The notice to update economic activities and obligations must be submitted in compliance with the requirements of procedure sheet 71/CFF “Notice to update economic activities and obligations”, of Annex 1-A of the RMF.
• Individuals with business activities through co-ownership may opt for the regime when the sum of the income of all the co-owners from the business activities does not exceed the limit amount of $3.5 million pesos for the regime, and the individual income of each co-owner, without any deduction, added to the income derived from the sale of fixed assets belonging to his business activity of the same co-owner had not exceeded the indicated limit amount in the immediately preceding fiscal year,
• The tax authority is empowered to update, no later than January 6, 2022, the tax obligations of individual (and legal) taxpayers to pay taxes under the regime, considering the information it has in its records as of December 31, 2022.
• Those taxpayers who obtain income from distributions made during a calendar month can defer the issuance of the digital tax invoices (Digital Tax Receipt online (“CFDI”)) that correspond to said transactions and issue a single comprehensive monthly CFDI, no later than 3 days after the last day of the month in question, provided that the following requirements and assumptions are met:
  • The income received in accordance with what is indicated derives from distributions made to taxpayers of the regime
  • Keep a detailed electronic record with the information of all operations carried out during the calendar month of each taxpayer to whom the monthly CFDI will be issued.
  • Utilize the last day of the month for the CFDI issue date.
• Please note that the following should be noted:
  • It will not be possible to choose to pay taxes in the regime when income is received for services provided predominantly to a borrower, who are treated as salaried employees
  • Individuals who choose to pay taxes in the regime will make monthly payments no later than the 17th day of the month immediately following the corresponding payment. To determine the monthly payment, the income received must be considered, covered by tax receipts, without including VAT and without considering any deduction.
  • A merchant who is in the regime may not reduce the payments made for salaries to his employees in the calculation of his monthly payment, since, to determine the monthly tax, it will be on the income received, without including VAT and without considering any deduction.
  • Those who are registered in the regime and have employees must pay towards profit sharing (Participation of Workers in the Company’s Profits (“PTU”)), since it is the right of employees to participate in the distribution of profits. In these cases, to determine the taxable base to which the PTU percentage will be applied, the income for the year collected must be considered (covered by its CFDI). Afterwards, payments for services and the acquisition of goods, the temporary use or enjoyment of goods (effectively paid), and the payments that are exempt for the worker for income tax purposes will all be considered in the overall calculations.
  • Expenses for electricity, telephone and stationery may not be subtracted from the income obtained by the taxpayer of the regime, since the ISR calculation mechanism does not consider the reduction of any deduction.
  • Those who are registered in the regime and have employees must pay PTU, since it is the right of employees to participate in the distribution of profits. In these cases, to determine the taxable base to which the PTU percentage will be applied, the income for the year collected must be considered, covered by its CFDI, to which the payments for services and the acquisition of goods will be reduced. or the temporary use or enjoyment of goods, effectively paid, as well as the payments that are exempt for the worker for income tax purposes.
  • Expenses for electricity, telephone and stationery may not be subtracted from the income obtained by the taxpayer of the regime, since the ISR calculation mechanism does not consider the reduction of any deduction.
  • The individuals of the regime, for the annual tax may not apply personal deductions, such as medical, dental or hospital expenses.
  • It will not be possible to deduct the acquisition of merchandise, as well as any other expense that has been spent to obtain the income. The ISR rate established for this purpose in the regime will apply to them, without including VAT and without applying any deduction.
  • With respect to VAT, only the monthly payments of the tax will be determined.

For further information please contact:

Kennya Ramírez
Senior Tax Consultant
kennya.ramirez@ecovis.mx
ECOVIS México
CDMX, Office