Annual declaration of moral persons 2006 mexico

Know the applicable legislation for all the Moral Persons regimes, as well as the processes required to prepare the work papers and adequately fill the DEMM program of the SAT.

Every year, in March, the obligation of Individual Taxpayers expires to file an Annual Declaration for the operations carried out in 2006.

We will see the most important considerations.

OBLIGATIONS OF MORAL PERSONS

Keep accounting in accordance with the CFF. (Accounting Systems and Records and entries will be analytical) Issue vouchers with requirements of article 29-A of the CFF (and the legend Charged in a single exhibition or in installments) Issue receipts for payments to residents in the foreigner. Present the declarations of Clients and Suppliers whose amounts are from $ 50,000 onwards, no later than February 15 of each year. (Extension February 28, 2007) Determine the Accumulated Income and Authorized Deductions when operations are carried out with Related Parties applying any method of article 216 LISR Present annual statement determining the Fiscal Result and Taxable Income for PTU (From January to March 2007 Prepare financial statements and carry out a physical inventory of merchandise as of December 31, 2006.Issue proof of payment of dividends and make payments with a non-negotiable nominal check in favor of the shareholder. Keep a specific record of the investments to which the Immediate Deduction of article 220 LISR was applied. Take control of Inventories of Goods, Materials Premiums, Products in Process and Finished Products, according to the PERPETUAL INVENTORY system.

DIM Annexes to Present

Wages and Salaries, Assimilates and CAS. Payments and Withholdings of ISR, VAT and IESPYS. Donations. Residents Abroad. Preferential Tax Regimes. Integrating Companies, Information on their Members. Information on Value Added Tax (VAT). Information on Operations with Related Parties Resident Abroad.

Deduction Requirements Regarding Informative Returns

In the case of Informative Declarations referred to in article 86 LISR, these must be presented within the terms established for said effect and have the corresponding supporting documentation as of that date, as well as the date of issue of the supporting documentation of a deductible expense must correspond to the year in which the deduction is made.

Minimum Data Needed to File the PM Annual Declaration

Statement of Financial Position (Balance Sheet)

Income Statement (Profit and Loss) - Fiscal Accounting Reconciliation.

Provisional ISR and Impac Payments

Work papers

Investment Deduction. Annual Adjustment for Inflation. Tax Losses. Determination of CUCA and CUFIN. Determination of Impacts. Application B-10 and D-4

Get DEM Software

Count on the FEA

TECHNOLOGICAL TORQUE BRAKE SAT PLANS

… The Integral Solution of the Tax Administration Service (SAT), originally planned for 6 months, could be extended throughout the year, which will affect plans to increase collection.

… They expected to capture between 15 billion and 20 billion additional pesos in taxes this year.

Indefinite Extension of the SAT Platform

The presentation of normal, complementary, extemporaneous declarations or fiscal correction of provisional or definitive payments may be carried out in accordance with the procedure established in chapters 2.14, 2.15, and 2.16. and other provisions in force until November 30, 2006.

Exemption from Impact

The beneficiaries of the Fiscal Incentive will be the Individual and Moral Taxpayers whose total income in fiscal year 2006, derived from Business Activities and by the Granting of the Use or Temporary Enjoyment of assets that are used in the activities of another taxpayer of the Asset Tax, would not have exceeded Four Million Pesos.

The taxpayers referred to in the decree MUST comply with the formal obligations set forth in the LIA, and must calculate in the Declaration of the Fiscal Year the Impac that would have corresponded to them in the same fiscal year had they not been exempt from payment, noting “ZERO” in the Line to pay.

Fuel Deduction

1) Fuel Deduction as of December 1, 2005

2) Payment with:

Nominal check

Credit card

Debit

Electronic Purses

Bank Transfers

3) Even when consumption is less than $ 2,000.00

4) You can pay in cash, as long as information is presented to the authority, stating the reasons.

The Ministry of Finance and Public Credit (SHCP) Agreed with the Chamber of Deputies to DEDUCTIBLE TAX PAYMENT IN CASH, for the CONSUMPTION OF GASOLINE, which will be applied for the 2006 Tax declaration, which must be submitted no later than March in the case of Companies…

… The Gasoline Deductibility, retroactively for the 2006 financial year, all individuals and companies that have paid with cash for this fuel and who need to deduct it will be able to do so.

… For all of 2007 it will be Deductible and Retroactive to 2006.

Fiscal year 2006, Gasoline Deduction paid in cash, if a COMPLEMENTARY declaration of the DIMM (Clients and Suppliers) is presented no later than the date on which the annual declaration of 2006 has to be presented, relating each fuel supplier independently the amount.

Exercise 2007, Gasoline Deduction paid in cash, if related in the Third Party Declaration, the Fuel Suppliers.

Fiscal Year 2008, Gasoline Deduction Paid in cash, for taxpayers who in 2006, would not have exceeded an amount of income of $ 4,000,000.00, provided that the consumption of gasoline paid in cash does not exceed 30% of total consumption for this product.

New Formats

FU "Provisional or Definitive Declaration of Federal Taxes". (Dynamic Formats) RU “Unique Application Form for Registration and Notices to the Federal Taxpayer Registry” (Replaces Formats R-1 and R-2) RX “Format for Notices of Liquidation, Merger, Excision and Cancellation of the Federal Taxpayer Registry ”

ANNUAL PM STATEMENT

Having the Java Version 1.3.3 Format 18. Annual declaration for fiscal years 2002,2003,2004,2005, and 2006 Including companies that go into liquidation during 2007. Download file: Directory C: dem_07 / Additional DemTasks> Create Icon on Desktop File dem_07.exe

STEPS TO SUBMIT ANNUAL PM STATEMENT

Download DEM (Multiple Electronic Documents) Capture Information. Generate file to send Information. Send Annual Declaration (FEA) The SAT sends acknowledgment of receipt. Balance in Charge can be found on the Bank's website

SUBJECTS REQUIRED TO SUBMIT ANNUAL PM STATEMENT

PM General Regime of Law RESIDENTS IN MEXICO For all their Income Regardless of the Source of Wealth Where They Come From (Double Taxation) (Art. 1 and 6 LISR) PM General Regime of Law RESIDENTS ABROAD for their Attributable Income (Art. 1 and 4 LISR) PM NON-TAXPAYERS, when they sell Goods other than their Fixed Assets or Render Services to Persons other than their Members (Art. 93 LISR) PM SIMPLIFIED REGIME PM SUBJECT TO THE TAX CONSOLIDATION REGIME

DEADLINES FOR THE PRESENTATION OF THE ANNUAL PM DECLARATION

GENERAL RULE JANUARY MARCH 2007 (Deadline April 2, 2007)

PM SIMPLIFIED REGIME (April 2007, when its members are FP, Art. 81-II Last Paragraph LISR) PM SUBJECT TO THE FISCAL CONSOLIDATION REGIME

(Within the Four Months following the closing of the fiscal year, April 2007, Art. 72-II LISR)

TAXES TO BE DECLARED IN THE ANNUAL DECLARATION OF PM

INCOME TAX (ISR). ASSET TAX (Impac)

Note: The information presented in the Annual Declaration is manifested in protest to tell the truth that the Settled Data ARE TRUE

TAXABLE INCOME

(PM Residents in Mexico)

CashGoodsCreditServices From AbroadAnnual Adjustment for Accumulable Inflation (Art. 46 LISR) Any Other (Accumulable Inventory)

NO INCOME IS CONSIDERED

Capital Increase Payment of Loss by its Shareholders Premiums obtained by placement of Shares Valuation of Shares by the Participation method (B-8) Revaluation of assets and Capital (B-10) Dividends or profits received from other PM Residents in Mexico (Increase base of OCT)

ACCUMULATION TIME OF INCOME

1) DISPOSAL OF ASSETS:

The voucher that protects the price or the agreed consideration is issued. The goods are sent or delivered materially. The price or the agreed consideration is charged or demanded totally or partially, even when it comes from advances.

2) PROVIDING INDEPENDENT SERVICES

In the case of income from the provision of independent personal services obtained by civil societies or associations and income from the supply of drinking water for domestic use or collection of domestic garbage obtained by decentralized organizations

The permit holders, the concessionaires or companies authorized to receive said services, are considered to be obtained at the time the price or the agreed consideration is charged.

3) GRANTING OF USE OR TEMPORARY ENJOYMENT OF GOODS.

When the total or partial consideration is received, or when it is demandable in favor of the person who makes said grant, or the proof of payment that covers the price or the agreed consideration is issued. Whichever comes first.

DEDUCTION OF EXPENSES EFFECTIVELY SPENT

In the case of payments that in turn are income of individual taxpayers, MP of the Simplified Regime, as well as donations, these are only deducted when they have been effectively disbursed in the year in question. They will only be considered effectively disbursed when they have been paid in cash, in a check drawn against the taxpayer's account, through account transfers in credit institutions or brokerage houses.

DEDUCTION FOR PAYMENTS to SC and AC

IN THE CASE OF PAYMENTS FOR THE PROVISION OF INDEPENDENT PERSONAL SERVICES OBTAINED BY CIVIL SOCIETIES OR ASSOCIATIONS AND PAYMENTS FOR THE SUPPLY OF DRINKING WATER, THEY WILL BE DEDUCTIBLE IN THE YEAR IN WHICH THEY ARE EFFECTIVELY SPENT.

CONDITIONED NON-DEDUCTIBLE EXPENSES

Provision of Payments to PF:

S and H Fees Leasing Business Activities

Provisioned, unpaid donations Provision of Payments to SC

PURE OR PERMANENT NON-DEDUCTIBLE EXPENSES

The Update of Contributions The ISR in Charge of the Taxpayer or Third Parties The Credit to the Salary The Impac 75% for Consumption in Restaurant Representation Expenses The amount that exceeds the arithmetic average for Social Security, Except that the ISR is covered by the PM The Commercial Credit PTUGasses that do not meet tax requirementsFines

REQUIREMENTS TO DEDUCT SOCIAL SECURITY EXPENSES

WHEN IT IS ABOUT SOCIAL SECURITY EXPENSES, THE CORRESPONDING BENEFITS ARE GIVEN IN A GENERAL FOR THE BENEFIT OF ALL WORKERS. NON-UNIONIZED WORKER IN AN AMOUNT EQUAL OR LESS THAN THE EXPENSES TO UNIONED WORKERS. WITHOUT CONSIDERING LIFE INSURANCE AND MEDICAL EXPENSES PREMIUMS AND CONTRIBUTIONS TO SAVINGS FUNDS, AND PENSION AND RETIREMENT FUNDS.

INVESTMENT DEDUCTION RULES

 Investments in automobiles will only be deductible up to an amount of $ 300,000.00.  THE EXPENSES MADE IN THE CASE OF AUTOMOBILES AND AIRCRAFT, MAY BE DEDUCTED IN THE PROPORTION REPRESENTING THE MOI DEDUCTIBLE, WITH REGARD TO THE VALUE OF ACQUISITION OF THE SAME

RULES APPLICABLE TO DEPRECIATION

Fixed assets consist of tangible assets that have been acquired or built to be used in the business of the company, for a considerable period of time and without the purpose of selling them.

Depreciation is an accounting procedure that aims to systematically and reasonably distribute the cost of tangible fixed assets, less their scrap value (if any), over the estimated useful life of the unit. Therefore, accounting depreciation is a process of distribution and not of valuation.

DEPRECIATION OF PROPERTY, MACHINERY AND EQUIPMENT

Depreciation is the distribution of the depreciable amount of an asset over its estimated useful life. Depreciation in the accounting period is charged to results either directly or indirectly

Depreciable assets are those that:

They are expected to be used for more than one period.They have a limited useful life.They are owned by a company to use them in the production or provision of goods and services, to lease them to others or for administrative purposes.

Percentages for the Deduction of Fixed Assets

100% Deduction of Investments in Machinery and Equipment for Power Generation from Renewable Sources

Renewable sources for the generation of energy are considered, the sun (solar), the air (wind), the rivers (hydraulics), and lakes, as well as the oceans, so the machinery and equipment that produces energy from these sources, will be 100% deductible. So the machinery must be in operation and operation for a minimum of 5 years, except loss due to fortuitous event or force majeure.

100% Deduction for Disability Accommodations

Adaptations made to facilities that involve additions or improvements to fixed assets will be deducted 100%, provided that such adaptations are intended to facilitate access and use of taxpayer facilities by people with different abilities.

Determination of Accumulated Income and Authorized Deductions for Operations with Related Parties

Related Parties:

A person or Group of People intervenes in the Administration. and / or make decisions

There is participation in common actions

APPLICATION OF THE CURRENT RULES OF PROCEDURE

… These provisions will be determined in accordance with the provisions in force at the time of their causation, but the rules on PROCEDURE that are issued afterwards will be applicable.

Provisions of Temporary Validity of the LISR

Exercise	ISR rate	Factor (*) Piramidation	Art.11
2005	30%	1.4286	0.4286
2006	29%	1.4085	0.4085
2007	28%	1,389	0.3889
2008	28%	1,389	0.3889

FACTOR FOR PM AGRICULTURAL, LIVESTOCK, FISHERIES AND SILVICOLAS THAT DISTRIBUTE DIVIDENDS.

Exercise	ISR rate	Decrease ISR	ISR Decreased	Pyramid Factor	Article 11
2005	30%	46.67%	15,999%	1,190	0.1905
2006	29%	44.83%	15,999%	1,190	0.1905
2007	28%	42.86%	15,999%	1,190	0.1905

DETERMINATION OF THE UFIN

(Effective from 2002)

Fiscal result for the year

(-) ISR S / Art. 10 LISR

Non Deductible Expenses, Except PTU

End of Exercise (Difference)

(-) ISR paid by decree It will be reduced from the dividend Cufin between that of the same fiscal year or by a factor of 0.4286 the following until it is exhausted.

For 2005 FA INPC Dec. Exercise. Decrease

INPC Dec. Exercise. Determined

LIA specifications

When the LIA refers to art. 7-B LISR, it will be understood that it refers to art. 46 and 47 LISR. (Art. 2nd DT P / 2002-LXIV) When the Fixed Assets of Deduct immediately, for the purposes of Impac, it will be considered as if this option had not been applied. ISR, who are entitled to the reduction of said tax, may reduce the Impac for the year in the same proportion as the ISR. (Art. 2-A LIA). When a taxpayer does not use GAAP to value their inventories, they will have to be valued at last purchase price or replacement value.

GAAP NEWSLETTER D-4

Paragraph 32. The IA caused, as well as the one pending to be offset from previous years, must be recorded as an advance of ISR at its estimated recovery value at the date of the financial statements. Paragraph 33. To the extent that it decreases or the probability of generating sufficient profits to offset or recover the IA disappears, the amount recognized up to that moment as an asset must be reduced. The effects of the reduction and, where appropriate, of the reversal, should be recognized in the results of the year. Paragraph 69. The IA considered as an advance of ISR, must be offset against the deferred ISR.

CREDITABLE VAT REQUIREMENTS

Deductible Expense »Creditable VAT

Non Deductible Expense »Non-creditable VAT

Partial Spending »Partial VAT

Creditable Deductible.

It is important that a reliable accountant make the calculation and presentation of your 2006 Annual Declaration so that you can correctly comply with this fiscal obligation.

What is DEM 2006?

The DEM (Multiple Electronic Documents) program is the SAT software for the presentation of the 2006 Annual Declaration of Legal Entities, an obligation that expires on March 31 of each year.

This year as March 31 is Saturday, the last day to submit this annual obligation is traveled to Monday, April 2.

I do not recommend that you wait until the end, since the SAT page could saturate, causing you not to present it in time.

Previous Work

Before using this software, you must have:

Present all your Provisional Payments of 2006 taxes Have made the calculation of your income and deductions according to the Regime in which you are registered before the SAT Have presented your Informative Declaration of Iva 2006 Advise yourself with a reliable Accountant so that you have made the most of all deductions and tax incentives to which you are entitled.

DEM 2006 Installation

To carry out the program installation, it is necessary to enter the SAT page; www.sat.gob.mx and download the Software either to install it at that time or later.

When selecting the file to download, the following window will appear, asking us what action we want to take.

The following window appears where the Installation Wizard begins to prepare.

In the next window, just click on the "Next" button.

This window asks us the path where we are going to install the program; We give the route and click on the "Next" button.

Next, it proposes a folder of the start menu in which the dem executable will be.

Finally it asks us if we want to create an icon on the desktop, we click on the "Next" button

Then the following window shows us with the progress of the installation.

Finally it shows us the following window where it indicates that the installation was carried out successfully; In addition to giving us the option to run the program at that time or just finish the installation. It only remains to click the button

Registration of Forms

Form 18 - Declaration of the exercise. Moral people. General Regime

Form 19 - Declaration of the exercise. Moral people. Consolidation.

Form 20 - Declaration of the exercise. entities the simplified scheme.

Form 21 - Declaration of the exercise. Legal persons for non-profit purposes.

Being on the main screen of the Dem, a tree appears on the right side where you have to register the forms and taxpayers.

To register a form, we right-click where it says "Forms" and select the following options:

It shows us the following window where it asks us which is the form that we want to incorporate. Select the form and click on "Enter Form".

He then asks us if we are sure of incorporating that form.

Finally, it presents us with this screen where it warns us that the form we have selected has already been incorporated.

To register a taxpayer, we right-click where it says "Taxpayers" and select the following options:

The following window presents us in which we must fill in all the fields.

As we can see on the right side of our window, the taxpayer that we have just registered appears, as well as the forms that we also registered.

Create new Declaration

To create a new return, we right-click on the taxpayer that we want to generate the return and select the following options:

The following window appears where we select the form that we are going to use and the exercise of the declaration, the type of declaration.

Once the data is selected, we are going to click on the button

To finish, it shows us the following screen where it indicates that it has already been registered.

As can be seen in the following window, the tree with the information that must be presented to the authorities appears on the left side; In the lower part of this we have highlighted some sheets that do not capture data since it is the part of VAT that should have already been presented in the 2006 multiple informative return, in addition to the fact that the system itself has disabled that part.

To begin with the capture of the information, it is necessary to fill in the Identification Data, which although it is true already brings most, we have to review the data and fill in the missing ones.

Validate Declaration

Once we have finished capturing the information of our declaration, we are going to click on the "Tools" menu and select the "Validate Declaration" option or click on the following button

Next it asks us if we want to execute the validation of the declaration, we click on the button

It will show us the following window to start the validation process, we click on the button

In this window it shows us the validation process, once completed, we are going to click on the button

Generate Shipping Package

After finishing the validation process, all we have to do is pack the file for sending through the SAT page.

We are going to click on the "Tools" menu and select the "Generate shipping package" option or click on the following button

When selecting the previous option, it will ask us if we want to encrypt the declaration, we click on the button

To finish, it presents us with the following window where it indicates that the file has already been generated, as well as its path and name. We only have to click on the button