Flash | Issuance of Guidance Letters to Compelled Parties

On November 1, 2024, the Tax Administration Service (“SAT”) sent 9,287 guidance letters to compelled parties engaged in activities considered as vulnerable. The purpose of these letters is to inform about the importance of complying with their corresponding tax obligations and the implications and consequences of failing to do so. This effort is part of the “Guidance Letters Program,” one of the main pillars of SAT's action plan, aimed to promoting good practices, strengthening the education, supervision, and guidance of compelled parties, and preventing and identifying acts or operations related to illicitly sourced funds.

According to the Federal Law for the Prevention and Identification of Operations with Illicitly Sourced Funds (“LFPIORPI”), activities considered vulnerable include, among others:

• Gambling, contests, or sweepstakes
• Service and prepaid cards
• Traveler's checks
• Loans or credits by non-financial institutions
• Construction or development services of real estate
• Commercialization of metals and precious stones, jewelry, and watches
• Auction or sale of artwork
• Commercialization of air, maritime, or land vehicles
• Armoring services for vehicles or real estate
• Transfer or custody of valuables and money
• Professional services to perform actions on behalf of a client
• Public faith services
• Receipt of donations by non-profit organizations (NPOs)
• Foreign trade services (customs agent or representative)
• Personal rights to use or enjoy real estate
• Virtual asset providers

Through these actions, SAT intensifies its efforts in combating organized crime, fulfills the international commitments assumed by Mexico as a member of the Financial Action Task Force (“FATF”), and promotes a culture of compliance with obligations regarding vulnerable activities, in adherence to the applicable legislation.

We recommend carefully reviewing the received letters and ensuring compliance with all corresponding obligations to avoid the potential initiation of an audit and the imposition of sanctions. 

Our Tax and Legal professionals through KPMG's Legal Services Practice in Mexico, specifically the Corporate Legal area, are at your disposal to assist in analyzing the potential implications arising from this initiative of amendment and, if necessary, to provide you the corresponding support.