07Jun

Second anticipated version of the Second Resolution of Modifications to the Miscellaneous Tax Resolution for 2021 and its annex 1-A

junio 7, 2021 Jesus Aguirre

On June 1, 2021, the Tax Administration Service (SAT) released the second version anticipated to the second modification to the Miscellaneous Fiscal Resolution (RMF) for 2021, as well as the new anticipated version of Annex 1-A .

Among the changes that were added and reformed to what was established in the first anticipated version, the most relevant considierados are described below:

2.1.6 Non-business days: It is noted that the first general vacation period of 2021 comprises the days from July 19 to 30, 2021.

2.1.39 Procedure to be observed to obtain the opinion of compliance with tax obligations: An obligation was added so that a positive compliance opinion can be granted, which refers to the fact that in the case of individuals who are debtors of subject taxpayers The administrative procedure of execution must have complied with the requirements that the SAT has made, in accordance with the rules of the procedure for seizure of credits.

2.11.10 Correction of tax situation through installment payment: Establishes that taxpayers who choose to modify their tax situation through installment payment before the resolution of the tax credit is issued must pay 20% of the total amount of the omitted contribution, by submitting the corresponding declarations and not only making payments in the amounts and on the dates on which they have been authorized.

2.16.11 Forgiveness of fines that derive from the application of undue tax losses: In this rule it was added that the forgiveness percentage will be 50% for taxpayers who express their intention to cover contributions and their accessories in part or in a deferred manner in charge

3.10.5 Assumptions and requirements to receive deductible donations: Point VI is amended, stating that donees authorized to receive deductible donations may modify the equity and settlement clauses to comply with the provisions of the Federal Law for the Promotion of Activities Performed by Civil Society Organizations, provided that the irrevocable manifestation continues in the sense that the assets will be used exclusively for the purposes of their corporate purpose for which they have been authorized to receive deductible donations from ISR.

According to the transitory articles, the Twenty-seventh Transitory Article of the RMF for 2021, published in the Official Gazette of the Federation (DOF) on December 29, 2020 was repealed.

The second transitory article indicates that the authorization to receive deductible donations from income tax will continue for fiscal year 2022, provided that the authorized donees have timely submitted the “Informative Declaration to guarantee the transparency of the patrimony, as well as the use and destination of the donations received and activities aimed at influencing the legislation ”and a statement in which the income obtained and the expenditures made are reported, both for fiscal year 2020; Or, if they comply extemporaneously with the presentation of said declarations no later than October 31, 2021.

The third transitory article indicates that natural persons who are obliged to keep accounts and enter through the SAT Portal may send the adjusted trial balance at the close of the fiscal year, corresponding to fiscal year 2020, no later than the month of June from 2021.

Annex 1-A Notice or request to the RFC for Merger of Companies

According to Annex 1-A, various requirements will be eliminated to carry out the cancellation notice process and the application for registration in the Federal Taxpayers Registry (RFC) for the merger of companies. Among them, is to provide the opinion of positive compliance of the legal entity to cancel at the time of submitting the notice; not be subject to the exercise of powers of verification, or have a tax credit in charge; not be published in the lists referred to in article 69 of the Federal Tax Code (hereinafter CFF) with the exception of section VI, nor in the lists of the second and fourth paragraph established in article 69-B of the CFF.

Likewise, the condition of not having carried out operations with taxpayers who have been published in the list referred to in article 69-B, fourth paragraph of the CFF, was eliminated.

Finally, in the aforementioned processing files, it is reduced to 45 calendar days for taxpayers to check that the notice has been registered and that the status of the legal entity is canceled. Likewise, during this period, the taxpayer will receive an official letter in which they will be informed of the pending tax obligations of the merged company.

The second version anticipated to the second modification to the Miscellaneous Fiscal Resolution (RMF) for 2021, as well as the new anticipated version of Annex 1-A, in mention, are pending to be published in the Official Gazette of the Federation (DOF).

27May

Reform on labor subcontracting: General provisions for the registration of people who provide specialized services or execute specialized works

mayo 27, 2021 Jesus Aguirre

On May 24, 20201, the agreement was published in the Official Gazette of the Federation (DOF) by which the provisions were made known so that natural or legal persons that provide specialized services or execute specialized works can register and appear in the Public Registry of Contractors of Specialized Services or Specialized Works referred to in article 15 of the Federal Labor Law.

This registration will also be mandatory for those companies that provide complementary or shared services in the same business group, under the terms of article 13 of the Federal Labor Law.

For these purposes, the aforementioned agreement indicates the following as Services or specialized works:

“They are those that bring together distinctive elements or factors of the activity carried out by the contractor, which are supported, among others, in the training, certifications, permits or licenses that regulate the activity, equipment, technology, assets, machinery, level of risk , average salary range and experience, which add value to the beneficiary. “

Within a period of 90 calendar days from the publication of the following provision, individuals or legal entities must access the platform http://repse.stps.gob.mx, through which they must provide the following information:

According to the document requirements necessary for this registration are:

The companies that request their registration in the register must, among others, be up to date with their obligations in fiscal and social security in front the SAT, the IMSS and the Institute of the National Fund for Workers’ Housing (INFONAVIT), as of the date the request is made.

Once the aforementioned information and documentation has been issued, the STPS through the platform will assign a folio number so that the applicant can follow up on the process. The STPS will have a period of 20 business days after receipt of the request and generation of the folio, to pronounce on the registration request.

The STPS may deny registration when any of the following cases arise:

Failure to prove the specialized nature
Not being up to date with tax and social security obligations and and social security obligations before the IMSS and INFONAVIT.
Provide false information or illegible documents.
Failure to comply with the requirements established in the Provisions

Likewise, the STPS may cancel the registration when any of the following cases occurs:

Provide specialized services or works not registered in the Register
Provide specialized services or works that are part of the main corporate purpose or economic activity of the beneficiary
In case that exist debts for firm credits derived from non-compliance with tax and social security obligations against the SAT, the IMSS and the INFONAVIT
Failure to comply with the registration requirements
Failure to meet any information or documentation requirement that is required by the STPS.

The registration number will be valid for the next 3 years, the validity must be specified in all contracts entered into by the provider of specialized services or works. When renewing the registration, this procedure must be initiated by the contractors within a period of three months prior to the date on which the validity of their registration ends.

24May

Next.e.GO Mobile to build electric car plant in Mexico

mayo 24, 2021 Jesus Aguirre

Next.e.GO Mobile, a German manufacturer of electric vehicles and sustainable mobility systems, announced that it will build an electric car assembly plant in Mexico.

In a statement, the company said it plans to enter the country in cooperation with the industrial consortium Grupo Quimmco of Monterrey, specifically with QUESTUM, its subsidiary company.

“e.GO’s unique 5G-ready micro-factory is perfectly suited not only to serve the growing Mexican market, but also to supply spare parts to other e.GO facilities in the Americas,” the company said.

It is worth mentioning that the company successfully developed a disruptive production model based on Industry 4.0 that significantly reduces investment requirements and time to market, while ensuring highly efficient production with a low break-even point, which is known as micro-factory.

“e.GO’s decentralized production system combined with QUESTUM’s expertise will contribute to the local economy and help create employment opportunities,” the German firm highlighted.

With e.GO vehicles, Quimmco plans to enter into the automotive fleet business in the domestic market.

next-go-mobile-abrira-planta_0_77_1200_746

Source: MexicoNow

( https://mexico-now.com/next-e-go-mobile-to-build-electric-car-plant-in-mexico/ )

21May

Kavak invests 250 million pesos in Querétaro

mayo 21, 2021 Jesus Aguirre

Kavak, the first unicorn in Mexico, makes an investment of 250 million pesos to open a new operations center in Querétaro. With this action, the company will offer 200 direct jobs to the queretanos.

Kavak, a company that became the first unicorn in Mexico, currently operates in Mexico City, Guadalajara, Monterrey, Puebla and now in Querétaro. The company dedicated to the purchase and sale of pre-owned cars will invest 250 million pesos in the opening of a new operating center in Querétaro, where direct work is expected for 200 people in the next 6 months. The operations center in Querétaro will have an area of 300 square meters.

” The pre-owned vehicle buying and selling sector in Querétaro is the fifth most important in Mexico, with an approximate value of 1,000 million dollars, so the arrival of Kavak offers certainty to Queretans when selling and / or buying a vehicle pre-owned without fear of being scammed, in a market that accounts for an average of 150.00 transactions per year, of which 80% occur between individuals, ‘said Alejandro Guerra, regional manager of Kavak.

Currently the platform has more than 10,000 car options of various brands and price ranges, which allows it to offer a wide portfolio for users to purchase the vehicle of their choice and receive it at home or pick it up at one of the branch offices.

And in April, Kavak raised $ 485 million in a series D funding round led by D1, Ribbit, BOND and Founders Fund. With this investment, the company achieved a valuation of 4,000 million dollars.

Kavak, la empresa de Compra y Venta de Autos Seminuevos en Mexico. 2020

Source: Cluster Industrial

( https://www.clusterindustrial.com.mx/noticia/3423/kavak-invierte-250-millones-de-pesos-en-queretaro )

17May

U.S., Mexico, Canada to hold ‘robust’ talks on trade deal – statement

mayo 17, 2021 Jesus Aguirre

The United States, Mexico and Canada will next week hold their first formal talks on their continental trade deal, with particular focus on labor and environmental obligations, the U.S. government said on Friday.

Trade ministers from the three nations are set to meet virtually on Monday and Tuesday to discuss the U.S.-Mexico-Canada (USMCA) deal, which took effect in July 2020.

“The ministers will receive updates about work already underway to advance cooperation … and will hold robust discussions about USMCA’s landmark labor and environmental obligations,” the office of U.S. Trade Representative Katherine Tai said in a statement.

The United States is also reviewing tariffs which may be leading to inflation in the country, economic adviser Cecilia Rouse told reporters at the White House on Friday, a move that could affect hundreds of billions of dollars in trade.

Source: Reuters

( https://www.reuters.com/business/us-mexico-canada-hold-robust-talks-new-trade-deal-statement-2021-05-14/ )

14May

Ally-Shoring

mayo 14, 2021 Jesus Aguirre

¿Have you heard of Ally- Shoring?

Due to the COVID-19 pandemic many industries experienced problems and complications in receiving critical components or had to modify their supply chains, leading to an exposure of the weakness and hard dependency of supply chains among various industries.

The US-Mexico Foundation (USMF), a non-profit organization dedicated to promoting bilateral cooperation between the United States and Mexico, recently initiated a campaign to promote the concept of Ally-Shoring, which they consider will help in building U.S. supply chain resilience.

What is the Ally-Shoring?

In the report “The Case and Path of Development for Ally-Shoring” prepared by Elaine Dezanski and John Austin for the United States-Mexico Foundation, it is defined Ally-Shoring as:

“A program of sourcing essential materials, goods, and services among partners and allies, reducing dependence on any particular country, particularly those that may not share the same values and long-term interest”

Note that perhaps the best example of the potential for ally-shoring is the US-Mexico relationship, and which represents a big opportunity for Mexico.

Relationship between Mexico and US

The US and Mexico have a unique opportunity to both strengthen and deepen joint manufacturing, R&D, trade, facilitation, security and governance ties through the adoption of an ally-shoring strategy. That is why during this pandemic US turned to Mexico to fill the gap in areas such as medical equipment and Mexico, similarly, was supported by the US.

Off-Shoring, Near-shoring vs Ally-Shoring

As we mentioned in our blog Nearshore vs OffShore, the fist one means transferring your operations across national borders to business operations in another country that is in proximity, with a relatively small-time- zone and cultural differences. While Offshore means transferring your business operations overseas.

Therefore, we can see that Ally-shoring adds a political and strategic component to the commercial relationship, when countries share crucial aspects and making the ties reach an even greater level of rapport within the productive chain of both countries.

Enrique Perret said in an interview for Forbes that:

“The process of seeking that supply chains can be more integrated with Latin America has accelerated, some years ago there was talk of off-shoring, which was the search for the installation of some production processes in locations that were competitive, then there was talk of near-shoring, which meant doing the same thing but in nearby countries, then re-shoring came, which meant returning the process. In the case of ally-shoring, it is about relocating these processes in countries that coincide in fundamental aspects, that is why the opportunity is so great for Mexico.”

Benefits and Opportunities of Ally-Shoring

Reduce dependence on critical supplies outside the region, mainly from countries in Asia, and make local supply chains more reliable and less susceptible to geopolitical crises, trade risks and other factors.
Accelerate the recovery from the pandemic-induced economic recession on both sides of the border, developing and expanding what is already an interconnected production system in North America.
Strengthening policy coordination between Mexico and U.S.
Ease job creation and business growth in emerging and highly important economic sectors, such as the technological, through binational R&D initiatives, in order to generate innovative, clean and sustainable production models.
Create joint critical infrastructure to improve business operations, enable critical supply chains, facilitate and speed trade and improve security.
Leverage the large databases on investments of both governments, to create strategies that attract more FDI to the region, as well as leverage the USMCA to integrate a strong trade region.

Are you thinking of ally-shoring in Mexico?

Through a shelter company, US companies can set up operations in Mexico easily and through a risk mitigation approach.

Mexcentrix can help you. We assure you a successful and timely start of operations while providing strategic guidance in order to help your company reach its goals.

14May

Grupo México unveils $3.1bn investment plan for Sonora mining activities

mayo 14, 2021 Jesus Aguirre

Grupo México is reportedly planning to make a $3.1bn investment for metals refining activities in Sonora.

In an interview with Reuters, Grupo México’s executive vice-president Xavier García de Quevedo said that $2.3bn of the total investment would be used for the expansion of the smelting capacity in Sonora, which is home to the company’s top mines, over a six-year period.

Additionally, Grupo México will make an $815m investment to build power infrastructure at the Baja California peninsula.

This includes the construction of a 500km transmission line running north-south along the southern half of the peninsula.

Quevedo said that the energy plans in Baja would not only benefit the El Arco mine but the regional domestic and commercial power users.

He said: “Baja California’s huge potential can’t be developed without electricity.”

The investments form part of the copper mining firm’s wider $9bn spending plan through 2027.

This spending plan includes the firm’s previously announced $2.8bn investment plan for the proposed El Arco copper mine.

The remaining of the funds would be investment in additional infrastructure, two other mines and new zinc refining capacity, reported Reuters.

Quevedo was quoted by the news agency as saying: “We all trust that we could have all the authorisations very soon.”

Quevedo added that the company’s overall copper output could decrease by up to 1.5% this year, due to reduced output from Peruvian operations.

By the second quarter of 2023, Grupo México plans to commission 36,000tpa of copper capacity from the El Pilar mine, as well as 30,000tpa of copper production capacity from the Buenavista mine in Cananea.

Additionally, the El Arco mine is planned to commence 190,000t production from 2027.

Source: Mining Technology

( https://www.mining-technology.com/news/grupo-mexico-investment-plan-mining/ )

07May

Bosch plans to invest up to $100 mln in Mexico this year

mayo 7, 2021 Jesus Aguirre

Germany’s Bosch, the world’s largest car parts supplier, said on Thursday it plans to invest up to $100 million in Mexico this year, a 15% increase, mostly in new manufacturing lines and digitization projects.

Bosch said the resources will be allocated to its operations in Toluca, Mexicali and Hermosillo, as well as the implementation of a network motion control system for auto parts production.

Last year, Bosch invested $87 million in Mexico and had annual sales of $2.7 billion there, a 20% drop from a year earlier due to the impact of the coronavirus pandemic.

Source: Reuters

( https://www.reuters.com/business/autos-transportation/bosch-plans-invest-up-100-mln-mexico-this-year-2021-05-06/ )

03May

GM to invest $1 bln in Mexico to build electric vehicle

mayo 3, 2021 Jesus Aguirre

General Motors Co (GM.N) said on Thursday it will invest $1 billion in a manufacturing complex in Mexico, drawing immediate criticism from the union for U.S. autoworkers as it prepares to build electric vehicles in 2023 in the border state of Coahuila.

GM said it is building a new high-tech paint shop that will start operations from June at the Ramos Arizpe site, which currently assembles conventional internal-combustion vehicles, including the Chevrolet Equinox and Blazer models, along with engines and transmissions.

The United Auto Workers criticized GM’s decision to build EVs in Mexico instead of using the union’s members in the United States when Washington is considering large new incentives for electric vehicles.

“At a time when General Motors is asking for a significant investment by the U.S. government in subsidizing electric vehicles, this is a slap in the face for not only UAW members and their families but also for U.S. taxpayers and the American workforce,” said UAW Vice President Terry Dittes in a statement, calling it “unseemly” to accept U.S. government subsidies and make vehicles outside the United States.

GM responded to the UAW statement by noting it has “recently announced nearly 9,000 jobs and more than $9 billion in new electric vehicle or battery cell manufacturing facilities in Michigan, Ohio and Tennessee.”

The White House did not immediately comment, but President Joe Biden has called for $174 billion to boost U.S. EV production, sales and infrastructure.

On Wednesday, Biden told U.S. lawmakers “there’s no reason why American workers can’t lead the world in the production of electric vehicles and batteries.”

GM issued a news release about the Mexican investment only in Spanish on its website and later provided an English translation when asked.

GM said it also plans to build batteries and electrical components at Ramos Arizpe and is making other improvements to its manufacturing complex.

GM did not say when it began building its new paint shop but previously came under criticism from former President Donald Trump for its Mexican operations. Trump had threatened to tax GM vehicles imported from Mexico.

GM aims to build two Chevrolet electric SUVs at Ramos Arizpe starting in 2023, according to Sam Fiorani, who tracks future vehicle production for AutoForecast Solutions.

A GM spokesman said the company was not announcing or confirming the electric vehicles that will be built in Coahuila, describing Fiorani’s comment as speculation.

The automaker already makes electric vehicles at four locations in the United States and Canada. GM has said it aspires to halt U.S. sales of gasoline-powered passenger vehicles by 2035.

GM’s Ramos Arizpe expansion will include new capacity to make batteries and other electronic components, which will begin during the second half of this year, the company said.

“I’m sure this investment will contribute to continue boosting Mexican manufacturing while bringing development to the region, the industry and the country,” said Francisco Garza, president of GM’s Mexican unit, during a webcast announcement.

Garza said he could not rule out adding a third production shift to the Ramos Arizpe facility in the near term, which would depend on meeting certain economic conditions.

The facility’s current workforce has 5,600 direct employees.

Source: Spot Light Metal

( https://www.spotlightmetal.com/huge-investment-to-support-mexican-car-manufacturers-a-1019683/ )

29Abr

Huge Investment to Support Mexican Car Manufacturers

abril 29, 2021 Jesus Aguirre

Bethel Automotive Safety Systems Co., Ltd. (WBTL) is investing $50 MUSD in a new plant in Mexico. It is located in Alianza Industrial Park in the Saltillo area of Coahuila State. The facility will be commissioned in Q3 2022 and will create about 550 jobs.

In first phase WBTL will build over 20,000 SQM facility for aluminum casting and machining to cover automotive chassis components such as knuckles and control arms. Foundation brakes and brake controls will be introduced in the future as needed.

“I am very pleased and honored to announce our first manufacturing global expansion into Mexico to support our key customers in North America. WBTL remains fully committed to provide our majors customers with local engineering and manufacturing capabilities. Two years ago, we opened a R&D Center in Detroit and now we are building a factory in Saltillo,” said Dr. Yongbin Yuan, Founder and CEO of WBTL.

“WBTL represent a great opportunity for Coahuila to uprise development for skilled hand labor. In this moments, were we have struggled to maintain jobs, WBTL brings good news to Coahuila setting a milestone being the first Chinese operation at Alianza. WBTL makes and keeps Coahuila strong,” said Miguel Riquelme, Governor of Coahuila.

Source: Spot Light Metal

( https://www.spotlightmetal.com/huge-investment-to-support-mexican-car-manufacturers-a-1019683/ )