In addition to legal entities, individuals are also obliged to submit together with the annual tax return, the information of the operations that they carry out with related parties residing abroad, carried out during the previous year.

Based on section X of article 110 of the Income Tax Law (LISR), individuals must comply with this obligation no later than April 30, for which they must also obtain and keep the documentation that demonstrate that they agreed to their operations with related parties abroad in 2020 at market value, as indicated in section XI of the same article 110.

In case of omission in the presentation of the aforementioned Annex 9 of the DIM or presenting it incomplete or with errors, articles 81, section XVII, and 82, section XVII, of the Federal Tax Code, establish that a fine can be generated that it ranges from $ 86,050 to $ 172,100 MXN.

*****

At Russell Bedford, we can advise you for the correct and timely compliance with the tax obligations related to this declaration, as well as for the issuance of the corresponding transfer pricing study.