Corporations with foreign investment in Mexico (and those described in Section 32, paragraph I and II of the Foreign Investment Law) must submit the Annual Economic Report each year, through which they provide, among other information, their Income Statements for the previous fiscal year.
However, on February 23, 2015, the “AMOUNTS RELATED TO THE UPDATING OF THE INFORMATION AND RENEWAL OF REGISTRATION TO THE NATIONAL REGISTRY OF FOREIGN INVESTMENTS” were published, which exempt certain individuals and corporations from the obligation of this procedure.
Corporations will be required to submit the report when any of the following accounts is greater than the amount established by the National Foreign Investment Commission through general resolution, $110’000,000.00 (one hundred and ten million pesos): Initial Total Assets, Total Final Assets, Total Initial Liability, Total Final Liabilities, Income in the country and abroad or Costs and expenses in the country and abroad.
The time frames to submit such report are in accordance with the first letter of the name, denomination or company name of the corporation:
- From “A” to “J”, during April; and
- From “K” to “Z”, during May.
If the name, denomination or company name starts with a number or some other character, it must be submitted during May and if the submission of the report exceeds the deadline, the obligated party will be entitled to a fine ranging from 30 to 100 minimum wages in force in Mexico City.
The documents needed to prepare the Annual Economic Report are:
- Financial Position, Balance Sheet,
- Statement of income,
- State of variation to capital,
- Statement of cash flows.
These same documents must be attached to the report along with the document that accredits the legal representation of the corporation.
Here at GD Legal we have experts in corporate matters who can adequately advise you for the submission of this Report. You can send us a message here to learn more.
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