Working in LATAM you already know that for audit purpose and to reduce tax evasion, a lot of countries had implemented signing on XML with a corresponding reporting element. Brazil for example have the Nota Fiscal and SPED, Chile create DTE and Libros, so it was expected that the Mexican Tax Authorities develop and implement something, now they have CFDI and electronic books. All those countries also implemented a penalty system in case organization are not complying.
As part of the 2014 Mexican tax reform, the Mexican government published a new rule requiring that taxpayers electronically submit monthly accounting information in accordance with rules.
Electronic Accounting Requirements
Fraction III of article 28 of the FTC requires taxpayers to maintain electronic accounting records, as applicable, in electronic devices pursuant to the regulations issued by the tax authorities. According to rule I.2.8.6., taxpayers must maintain accounting records through electronic systems that can create XML format files, which include the following:
1. Chart of accounts used during the period.The chart of accounts must include a field to classify an account groupings, as defined by the tax authorities in Annex 24 of the Temporary Regulations.
2. Trial balance, with initial balances, movement for the period and final balances for each of the accounts of the taxpayer, including assets, liabilities, equity and results of operations (revenue, costs and expenses).For final year-end balances, information on recorded tax adjustments should be included. The tax accounts should be identified along with, when applicable, the different rates, quotas and activities for which no tax is due, as well as transferred taxes and creditable taxes. Guidance for these accounts is provided in Annex 24 of the Temporary Regulations.
3. Information related to journal entries in the accounting records.This should include details for each transaction, such as account, subaccount, sub-ledger and information related to electronic invoices, as well as identifies the different tax rates, quotas and activities for which no tax is due.
To satisfy the requirement, taxpayers must submit their files electronically through an electronic mailbox in an XML Format.
The tax authorities specify deadlines for the delivery of trial balances and the catalog of accounts using the XML file format. The authorities may also request information on accounting vouchers issued.
Under the new rules, taxpayers will be required to keep accounting records in an electronic system capable of generating XML files and email it with other electronic files to the Mexican tax authorities. The system should be able to generate Xml Format Files that include the following:
A chart of accounts must be submitted in the first electronic submission for the period and at each modification, the first chart of accounts must be sent by October 2014.
A trial balance must be submitted on a monthly basis, generally by the 25th day (for legal entities) of the following month. The tax authorities provided more time to submit the trial balances related to July to December 2014 period). Information on tax adjustments must be reported annually with the year-end trial balance information that is due by 20 April (for legal entities) of the following year.
Information related to journal entries in the accounting. The records must be submitted upon request from the tax authorities, as part of an audit, or when a taxpayer applies for a tax refund or tax offset.
Extended Deadlines for 2014 Reporting Periods
The new rules extend the deadlines for monthly submissions of the 2014 trial balances as follows for corporate taxpayers:
Trial balance for the month Deadline
July January 2015
August January 2015
September and October January 2015
November and December January 2015
The annual information must be delivered no later than April 22, 2015 and must contain all tax adjustments
How we can help?
Ataway created a Bolt-on to allow your PeopleSoft Financial system to be compliant with the new regulation. The Bolt-On Is fully configurable, and you could be live in few weeks!
The Ataway Solution for Electronic Accounting is based on an independent component of PeopleSoft's modules, and operates through configurations allowing organization an easy handling and administration. Built as a bolt-on with non-native components, your system integrity is protected, this solution will not affect your upgrade and it will be easy to manage future SAT requirements.
The features included in the solution are:
· Configuration of the catalog grouping and attributes for SAT
· Configuration of the Electronic Accounting – Detail of SAT Accounting Entries
· Defining XML Formats for the Electronic Accounting
· Mapping of SAT catalog to the catalog of the entity accounting
· Generation of the trial balance
· Security of the menus of the Electronics Accounting: SAT Catalogues, Trial Balance Detail and Policies
· Pre-visualization of account Catalog to be send to the SAT, Trial Balance Detail and Accounting Entries
· Structure and logic components aligned to standards PeopleSoft.
You can read more on the E&Y website: Mexican tax authorities issue rules for electronically filing accounting records. The article is from July so you do not have the latest deadlines. Or directly at CONTABILIDAD ELECTRÓNICA
In Mexico: Alejandro Correa, email@example.com, Office + 52 (55) 6395 0793, – 0794, Mobile + 52 (155) 5403 0168
Other Countries: firstname.lastname@example.org, a representative will contact you promptly.
Consult with Ataway’s Team of Experts today, and learn how we can help to you to be compliant with the new regulation.