In terms of tax provisions, taxpayers legal entities obliged to make monthly provisional income tax payments that, on the one hand, are NOT taxed in the new Simplified Trust Regime in terms of Chapter XII of Title VII “On Tax Incentives” of the LISR and who consider that the Profit Coefficient that they must apply for the determination of said payments is higher than the corresponding profit coefficient,  may apply a  lower Profit Efficiency from the second half of 2022.

For such purposes, authorization for the application of the lower Profit Coefficient must be requested from the corresponding tax authorities one month before the date on which the entire provisional payment (s) of ISR that is requested to be reduced must be made, in addition to complying with various formal requirements such as the presentation of a writing and the corresponding official form.

Considering the above, at FRALLA we are at your disposal to evaluate whether it would be necessary to apply a lower Profit Coefficient in the provisional payments of the second half of 2022, thus avoiding a relevant balance in favor in the annual income statement of the year 2022 that had an impact on the cash flow of the operation and,  Subsequently, to carry out the request for authorization for the application of the lower coefficient before the tax authorities by integrating the necessary information and documentation.

We remain at your disposal for any questions or additional information required in connection with this publication.

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Mexico City, Mexico

 July 2022