Mexico: Rules for 2023 tax compliance (State of Mexico)

The general rules for correct compliance with the financial code of the State of Mexico (one of the 32 Mexican states) and its municipalities on 9 February 2023 was published in the official newspaper of the State of Mexico.

Also published was the state income law for fiscal year 2023, in which the requirements and procedures of various tax topics are established, including:

• Registration, presentation of notices, and compensation in the state taxpayer registry
• Notice of the main establishment and branches
• Tax subsidy on expenditures for personal work remunerations (impuesto sobre erogaciones por remuneraciones al trabajo personal—ISERTP)
• Vehicle control procedures
• Considerations of the different taxes expressed in the code

The rules consider generalities, declarations, payments, procedures and obligations—depending on which one the taxpayer is subject to—with respect to taxes on:

• Disbursements for personal work remuneration
• Lotteries, raffles, sweepstakes, contests, and games permitted
• Provision of hosting services
• Final sale of alcoholic beverages
• Emission of polluting gases into the atmosphere
• Pawnshops

• The classification of taxpayers is established according to the criteria to be considered and procedures to be carried out for the presentation of declarations and payments on a monthly and annual basis of an informative nature, considering the cases that are applicable to each taxpayer.
• Filling out the section of the declaration is indicated based on the assumption that the tax in question is not paid, referring to payments for remunerations to people with disabilities, with terminal or chronic-degenerative diseases that prevent them or limit the regular performance or development of their duties at work within the territory of the State of Mexico
• The assumptions and periods of application of subsidies in terms of the tax on expenditures for remuneration of personal work are broken down.
• Whoever subcontracts specialized services or the execution of specialized works must register in the public register of the Ministry of Labor and Social Welfare and inform the registration data in the declaration section corresponding to “Service Provider.”

Obligations of taxpayers before the Ministry of the Environment:

• Make the registration in the state taxpayer registry and register the obligation
• The registration process will be considered completed, in accordance with the applicable jurisdiction for fixed sources:
  • Municipal jurisdiction, with the document that the municipalities determine for such purposes
  • State jurisdiction, with the operating license (registry of emissions into the atmosphere) issued by the Ministry of the Environment
  • Federal jurisdiction, which will be considered fulfilled with the annual operating certificate
• Submit annually to the corresponding secretariat or city council, depending on whether it is fixed sources of state or municipal jurisdiction, the integral operation certificate or, when appropriate, the annual operation certificate delivered to the Ministry of Environment
• Keep a record of polluting emissions that will be available to the secretariat

The presentation of the declarations must be made electronically and within the terms established in the financial code of the State of Mexico and municipalities. Regarding the procedure for the monthly calculation of the tax base, the provisions of the methodology issued by the State Institute of Energy and Climate Change in force at the time of its causation must be followed.

These rules supersede those published in 2022 and will be effective until other legal provisions are issued to replace or modify them. Taxpayers must follow these rules to facilitate compliance with the tax obligations contemplated in the financial code of the State of Mexico and its municipalities, as well as in its revenue law for fiscal year 2023.

Read a February 2023 report (Spanish) prepared by the KPMG member firm in Mexico