DECREE BY WHICH THE VARIOUS FISCAL STIMULES ARE MODIFIED NORTHERN BORDER REGION
Finally, on December 30, 2020, a Decree was published that modifies the North Border Region Fiscal Incentive Decree, in which, in addition to extending its validity until December 31, 2024, it establishes various modifications according to the following:
INCOME TAX STIMULATION
Third Article. Requirements
The “registration application” process is replaced by the presentation of a “registration notice” to the “Registry of beneficiaries of the stimulus for the northern border region”, in order to be able to apply the benefits mentioned in the article Second of this Decree, which implies that a prior authorization from the authority is not required.
Likewise, other articles of the Decree are amended to carry out this substitution and adapt the provisions to it.
Article Six. Taxpayers to whom the stimulus does not apply
The details indicated in the following fractions are made:
X. This fraction establishes that the stimulus will not be applied to taxpayers who fall into any of the assumptions established in the penultimate paragraph of Article 69 of the CFF, and therefore are contained in the publication of the SAT Internet page. With the modification to the decree, an exception is included when the publication obeys the provisions of section VI of article 69, only in relation to the payment of fines, a circumstance that must be indicated when submitting the notice of registration to the Register
XVII. This section establishes that the incentive will not be applied to taxpayers who have been exercised powers of verification and have been determined omitted contributions, without having corrected their tax situation, for any of the five fiscal years prior to the one in which the stimulus is applied (replacing the five fiscal years prior to the entry into force of the Decree).
XX. This section establishes that the incentive will not be applied to legal entities whose partners or shareholders have been removed from the “Register of beneficiaries of the stimulus for the northern border region.” Previously, reference was made to the loss of authorization to apply the fiscal stimulus.
Seventh Article. Requirements to apply the stimulus
It is modified to replace the registration application process, by the submission of a registration notice to the Register and further details are made and new requirements are incorporated in accordance with the following:
- It is specified that seniority in the tax domicile, branch, agency or establishment, within the northern border region, will be at least eighteen months immediately prior to the date of registration in the Register.
IV. It is established that taxpayers must collaborate annually (previously semi-annually) with SAT’s real-time verification program
In addition, the following requirements are added:
V. Not being in the procedure for the temporary restriction of the use of digital stamps for the issuance of CFDI, in accordance with Article 17-H Bis of the CFF.
VI. Not having the certificates issued by the SAT for the issuance of CFDI canceled, in accordance with article 17-H of the CFF.
Eighth Article. Registration, validity and renewal
It is modified to make the following clarifications:
- The SAT will register taxpayers in the “Register of stimulus beneficiaries for the northern border region” within the first three months of each fiscal year.
- The registration notice will be effective during the fiscal year in which it was made. If the taxpayer chooses to continue applying the fiscal stimulus, they must submit a renewal notice no later than March 31 of the fiscal year in question, provided that they continue to meet the requirements and that they do not fall within any of the assumptions indicated in the Article Six.
- The SAT may require the taxpayers registered in the Register the information and documentation it deems appropriate, to verify that they comply with the requirements of the Decree, in accordance with the real-time verification program, established in general rules issued for that purpose.
Article Nine. Request for removal from the Registry of Beneficiaries by the Taxpayer
The reference to the revocation of the authorization is eliminated, mentioning only the withdrawal of the Register, and noting that as soon as the SAT has withdrawn the taxpayer from the Register of Beneficiaries, it will cease to apply the benefits of the Decree.
Tenth Article. Cancellation of the Registry of Beneficiaries by the SAT.
The reference to the revocation of the authorization is eliminated, establishing that the SAT may remove the taxpayers from the Register, when the following cases occur:
I. Do not present a renewal notice no later than March 31 of the fiscal year in question.
II. They stop meeting the requirements established in the Decree and the general rules issued by the SAT.
III. Request their removal from the “Register of beneficiaries of the stimulus for the northern border region”.
IV. Update any of the assumptions established in Article Six of the Decree.
VALUE ADDED TAX STIMULUS
Thirteenth Article. Cases in which the VAT stimulus does not apply
Section I of this article is modified to include the temporary use or enjoyment of intangible assets and section VI is added to read as follows:
The fiscal stimulus referred to in article Eleventh of this Decree will not be applied in the following cases:
I. The sale of real estate or the transfer and granting of the temporary use and enjoyment of intangible assets.
VI. Taxpayers engaged in the provision of goods or people transportation services, by land, sea or air, except when the provision of said services begins and ends in said region, without making stops outside of it.
OTHER IMPORTANT ASPECTS FOR THE APPLICATION OF THE NORTHERN BORDER REGION STIMULATION DECREE AND ITS MODIFICATION:
For the purposes of the SRI stimulus:
- According to Article Seventh of the Decree, taxpayers who intend to apply the SRI stimulusThey must submit a notice to the SAT no later than March 31 of the fiscal year in question, to be registered in the “Register of beneficiaries of the stimulus for the northern border region.”
- Taxpayers who, after the Decree enters into force, register in the RFC and establish their fiscal domicile in the northern border region or open a branch, agency or establishment in said region, must submit the notice within the following month on the date of registration or presentation of the branch opening notice.
- For taxpayers who already have authorization to apply the income tax incentive, we remind them that according to Article Eight of the Decree, said authorization is valid during the fiscal year in which it was obtained, therefore taxpayers who are interested in renewing the registration authorization in the Register for 2021, they must submit a renewal request no later than March 31, 2021.
- It is also important to consider that according to Article Eight of the Decree, the SAT may require the taxpayers registered in the “Register of stimulus beneficiaries for the northern border region”, the information and documentation that it deems appropriate, in order to verify that they comply with the requirements established in this Decree, in accordance with the real-time verification program established in the general rules.
For the purposes of the VAT stimulus:
- For taxpayers who already apply the VAT stimulus, the Decree does not provide for renewing the notice of application of the stimulus or carrying out any additional procedure to continue applying it. This was confirmed by the SAT through the press release dated January 11, which states that these taxpayers They will be able to invoice with a rate of 8% VAT, as of January 1, 2021.
- In accordance with Article Twelfth, taxpayers who start activities after the Decree enters into force must present the notice of application of the fiscal stimulus within the month following the date of registration in the RFC or the notice of opening of branch or establishment