Tax closure and companies
The closing of the fiscal year is essential to obtain valuable information on financial profits or losses. At the close of the fiscal year, trends, strengths and weaknesses can be analyzed in order to establish objectives and add prevention strategies for the following year. In this sense, the fiscal year represents an extremely essential information document for the continuous growth of corporations.
Considerations to take into account
Some of the indicators that the SAT monitors very closely and that should be reviewed at the close of this fiscal year are:
- Increase in cost of goods sold
- Unusual deductions
- Decrease in the profitability ratio
- Effective rates out of parameter
- Operations with no business reason
- Recurring tax losses
- Decrease in accounting income
Obligations and considerations for a fiscal closing
- Update the corporate books with the decisions made during the fiscal year, as well as integrate the file for the controlling beneficiary. Submit notice of update of the shareholding structure.
- To file notices before the RFC.
- Submit the corresponding informative declarations for considerations received in cash, local or foreign currency or gold or silver pieces, transactions with related parties, loans from abroad, relevant transactions, reportable schemes.
- Regarding payments abroad in the case of application of treaties to avoid double taxation, review compliance with requirements, including obtaining proof of tax residency.
- In the case of transactions with related parties, the transaction has been agreed at market value; there are current contracts, tax receipts and other documents that support the transactions.
- Check that labor obligations such as PTU and social security payments have been complied with and that the respective CFDIs have been issued.
- Perform cross-checking of income tax withholdings paid vs. stamped in the payroll.
- Cross-reference CFDIs issued and received that support accrued income and authorized deductions so that the amounts declared are duly supported.
- Correction of CFDIs, including the elimination of duplicate CFDIs.
- To credit provisional payments made during the year, withholdings made by third parties (financial institutions), tax paid abroad or tax paid on the distribution of dividends, as the case may be.
- Updating of tax attributes such as CUCA and CUFIN.
- Review the history of tax loss carryforwards.
- Review of applicable tax incentives and requirements to be complied with.
If you require advice on the subject, the specialists at Ecovis can help you.
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