Below is an analysis of the Measures adopted solely in the States of the country indicated hereinafter: a) Aguascalientes By means of a Decree published on March 28, 2020 in the Official Gazette of the State of Aguascalientes, the “Economic Support Program in Response to the COVID-19 Contingency” was issued, whereby it was determined: (i) To defer the payment of the Payroll Tax for the months of April, May and June 2020, to be settled in up to 8 equal monthly installments. For such purposes, a written request must be filed before the Undersecretariat of Revenue of the State Secretariat of Finance prior to the expiration of the payment due date; subsequently it will be formalized through an installment payment agreement, which will not generate fines, inflation adjustments, or surcharges. (ii) To extend the deadline for compliance with the payment of the Vehicle Control Duty until July 31, 2020. (iii) To defer the payment of the Tax on the Final Sale of Alcoholic Beverages accrued during April, May and June 2020, to be settled in up to 8 equal monthly installments. In order to obtain the deferral of the tax, a written request must be filed before the Undersecretariat of Revenue of the State Secretariat of Finance prior to the expiration of the payment due date; subsequently it will be formalized through an installment payment agreement, which will not generate fines, inflation adjustments, or surcharges. (iv) Likewise: (a) the 5% discount is maintained with respect to the payment of the Vehicle Control Duty for the months of April, May and June1 ; (b) a 10% discount is granted to those owners of automobiles, vans and heavy vehicles who make payment of the 2020 Vehicle Control Duty in the months of April, May and June, through the electronic portal of the Government of the State of Aguascalientes; (c) a 10% discount is granted on the payment of the Tax on the Acquisition of Used Motor Vehicles to those who change ownership in the months of April to December 2020 (provided they are current in the payment of the Vehicle Control Duty); (d) a discount of up to 40% is granted on the Tax on Public Entertainment during the months of April to December 2020; and (e) a 30% discount is granted on the payment of the Payroll Tax accrued in the months of April to December 2020 to companies that have up to 20 active workers in each of those months; provided that they pay the non-discounted remainder (70%) in a single payment, in due time and form. (v) Additionally, between March 28, 2020 and the month of May 2020, the State Secretariat of Finance will suspend the issuance of audit acts for the commencement of powers2 . However, invitation letters will be issued and only in those cases in which the irregularities detailed therein are not remedied will an audit act be issued. In addition, all proceedings at the domiciles of taxpayers, arising from audit acts in progress, will be suspended during April and May . b) Mexico City In accordance with the note published by our firm this past March 20 (which may be consulted here), the “Agreement suspending the terms and deadlines inherent to administrative proceedings and procedures and granting administrative facilities for compliance with tax obligations, in order to prevent the spread of the COVID-19 virus” was published in the Official Gazette of Mexico City, by virtue of which it was determined: (i) To suspend the terms and deadlines for the conduct of actions and proceedings in the administrative proceedings carried out before the Agencies, Deconcentrated Bodies, Boroughs and Entities of the Public Administration of Mexico City, including those of a fiscal nature, such as: commencement, prosecution, notifications, summonses, formal notices, requirements, agreements, proceedings, resolutions, appeals of nonconformity, revocation or any other means of defense, and other actions. (ii) To extend the deadlines for compliance with tax obligations, consisting of the filing of returns and the making of payments that must be effected during the month of April 2020, which may be carried out until April 30 of the same year. (iii) In the case of the Tax on the Ownership or Use of Vehicles, whose deadline for obtaining the subsidy is March 31, 2020, an extension was granted for obtaining the respective waiver until April 30 of the same year. c) State of Mexico This past March 23, the “Agreement of the Secretary of Finance issuing the Actions to be carried out by the Administrative Units of the Secretariat on account of COVID-19” was published in the Official Gazette of the State of Mexico, and on March 26 the “Agreement of the State Executive granting Tax Benefits in relation to the Tax on Disbursements for Remuneration of Personal Work on account of the Health Emergency caused by COVID-19” was published, by which it was determined: (i) To suspend public-service operations during the period from March 23 to April 19, 2020. During such period, the deadlines for the receipt of documents, reports, procedures, filings, actions, proceedings, notifications, summonses, formal notices, requirements, requests for reports or documents, means of challenge, and the commencement, prosecution and resolution of proceedings, and any in-person procedure carried out at the Administrative Units of the Secretariat of Finance, will not run. (ii) To suspend the procedural or administrative terms and deadlines under the exclusive jurisdiction of the Administrative Units of the Secretariat during the period from March 23 to April 19, 2020, it being understood that the terms will not run and, as the case may be, any action, filing, requirement or request will take effect as of the first business day following the conclusion of the referenced period (April 20, 2020). (iii) To grant a subsidy of 50% of the Tax on Disbursements for Remuneration of Personal Work on the total amount of the tax accrued in the month of April 2020, which must be paid no later than this coming May 11 . As a requirement, it is necessary to have at least 50 employees as of March 31, 2020 and not to reduce the workforce. d) Jalisco Now then, this past March 20, “DECREE 27885/LXII/20 amending Article 23 of the Revenue Law of the State of Jalisco for fiscal year 2020” was published in the Official Gazette of the State of Jalisco, by virtue of which it was determined to extend the deadline for payment of the renewal duty until the last business day of the month of May 2020; as well as to incentivize the procedure through electronic internet means, granting a 5% discount on payments made online during the months of April and May 2020. e) Nuevo León On April 1, 2020, the “Agreement on Administrative Facilities regarding the Payroll Tax COVID-19” was published in the Official Gazette of the State of Nuevo León, whereby it was determined: (i) To exempt from payment of the Payroll Tax corresponding to the months of March, April and May 2020 those individuals and legal entities (whose gross income, for purposes of the Income Tax, relating to fiscal year 2019 did not exceed 4 million pesos) that have a workforce of 1 to 10 direct employees. (ii) To exempt from payment of the Payroll Tax corresponding to the months of March, April and May 2020 those individuals and legal entities engaged in the following lines of business: restaurants, restaurant-bars, hotels, casinos, gyms, theaters, bars, cinemas and recreation services. (iii) The exemptions from payment of the Payroll Tax referred to in points (i) and (ii) must be requested before the Virtual Treasury of the Government of the State of Nuevo León, before which it must be evidenced that the taxpayer falls within the referenced circumstances. Additionally, they must file their tax return no later than April 17, May 17 and June 17, 2020, respectively. Likewise, it is established that the taxpayers may not be newly created companies and the applicants must be current in the payment of the Payroll Tax, must not have any tax liability or proceeding arising from said tax, and must request the exemption during the term of the agreement (from April 1 until June 2020). In order to benefit from the tax-payment exemptions, companies must maintain at least their February 2020 workforce during the months of March, April and May. Furthermore, it is noted that under the referenced agreement, no refund of undue payment will be applicable and it will not give rise to any right to refund, offset, credit or balance in favor. In line with the foregoing, it is important to take into account that by means of the “General Agreement of the Secretariat of Finance and General Treasury of the State of Nuevo León, whereby it is determined that during the period from March 17 to April 20, 2020 the legal deadlines in audit or collection actions are extended,” published on March 20, 2020 in the Official Gazette of the State of Nuevo León, it was determined: a) To suspend new audit acts during the period from March 17 to April 20, 2020; and b) To extend the legal deadlines for the filing of administrative appeals, and for compliance with requirements for data, reports or documents requested by the auditing or collection authorities in the various Administrative Units of audit, collection and recovery that make up the Secretariat of Finance and General Treasury of the State. f) Querétaro At this time no support plan or tax incentives at the state level have been published. However, it has been made known that a incentive plan is being worked on (although as of this date the same has not been officially published). g) San Luis Potosí On April 1, 2020, the “Administrative Agreement whereby various Tax and Administrative Incentives are Granted, as Support to Address the Effects of the Pandemic of the Disease caused by the SARS-COV2 Virus (COVID-19),” was published in the Official Gazette of the State of San Luis Potosí, whereby it was determined: (i) To grant an incentive of 100% of the total amount of the Tax on Disbursements for Remuneration of Personal Work accrued in the months of March, April, May and June 2020, to taxpayers that have up to 50 workers, as well as to those engaged in public transportation services, irrespective of the number of workers. The foregoing is subject to their retaining at least 90% of the workforce. (ii) To extend the deadline for payment of the Tax on Disbursements for Remuneration of Personal Work in favor of all taxpayers, until July 15, 2020, for the tax accrued in the months of March, April, May and June of the same fiscal year. (iii) To grant an incentive of 100% on the payment of the Tax on Lodging Services to its taxpayers, accrued in the months of April, May and June 2020. For such purposes, it is noted that the providers of such service must not pass this tax on to the persons who receive it in said months. (iv) To grant an incentive of 100% on the payment of the Tax on the Acquisition of Used Motor Vehicles to taxpayers that have the obligation to pay the same in the months of April, May and June 2020. (v) To extend the deadline for the payment of the Vehicle Control Duties until June 30, 2020 and to grant a 20% discount to taxpayers who use electronic means of payment during the months of April, May and June 2020, with respect to the contributions accrued in the present fiscal year. (vi) To grant taxpayers engaged in public transportation services a tax credit letter applicable to fiscal year 2021, equivalent to the amount paid for inspection duties and annual renewal, corresponding to fiscal year 2020. (vii) Likewise, said agreement noted that the benefits granted would not confer upon taxpayers any right to refund or offset. (viii) To suspend the procedures of audit and enforcement of state contributions, as of the effective date of such agreement (April 1, 2020) and until June 30, 2020. (ix) Additionally, the Secretariat of Finance of the State Government was empowered to issue the operating rules necessary for the correct and proper application of the agreement. On the other hand, as of March 27, 2020 and until April 19, 2020, in-person activities are temporarily suspended in the buildings and offices assigned to the agencies and entities that make up the Public Administration of the Executive Branch of the State (including the State collection offices)5 . *** The Measures detailed in this document are subject to modifications arising from the evolution of the health contingency caused by COVID-19. We suggest that, before they are taken into account, the requirements, terms, term of validity, and other considerations necessary for their application be reviewed in the official media, as well as consulting our experts in the event of any doubt or if professional analysis and/or advice is required. For additional information, contact our experts: Fernando Moreno, Partner: +52 (55) 5258 1008 | fmoreno@vwys.com.mx Jorge Díaz, Associate: +52 (55) 5258 1008 | jdiaz@vwys.com.mx Diego Benítez, Associate: +52 (55) 5258 1008 | dbenitez@vwys.com.mx
