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Uncollectible Accounts

Collections in Mexico The collection process in Mexico may be quite difficult due to missing standards and complicated legal processes in this area. There is no framework on standard payment terms or on late payment fees. These must be agreed…
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Secretary of Finance: Requirement to pay taxes at latest on the 17th

Recently, the Secretary of Finance together with the SAT has started to send out audit requests to companies which do not pay their taxes on the 17th of each month. Even if the tax law allows for additional days depending on the tax ID, we strongly…
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Thin Capitalization Regulation in Mexico

What is thin capitalization and why is it important? Companies are usually financed through a mix of equity and debt. If a company’s financial structure includes a relatively high level of debt in comparison to its equity, it is referred…
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Transfer pricing in Mexico

What is Transfer pricing? Transfer prices refer to the prices that affiliated companies use to valuate transactions with each other. By setting a transfer price international companies can shift the profit of a company from one country to…

Querétaro – The most livable state in Mexico

Mitofsky is a leading Mexican company dedicated to produce representative surveys. Within the scope of the 'México opina' Section, 5,236 Mexicans were interviewed regarding their opinion on the 31 Mexican States from 09.-15.01.2020. Cultural…

The future on Mexico’s roads

Many renowned vehicle manufacturers, as well as smaller start-ups, are constantly working worldwide on the development of electric and autonomous vehicles. For instance, the German company Continental announced last year that it would increase…
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The Importance of the Annual General Assembly

According to Article 178 in the Mexican General Law of Commercial Companies (Ley General de Sociedades Mercantiles), the annual General Assembly is an important meeting for shareholders to discuss and agree about the company´s actions. As the…

Expansion of (digital) infrastructure in Mexico

Mexico is considered one of the world's emerging markets. Therefore, it comes as no surprise that Mexico, as a major trading partner and intermediary for the North and South American countries, is in constant development aimed to fulfilling…

USMCA: The new free trade agreement between the USA, Canada and Mexico

After the three North American countries - the US, Canada and Mexico; signed the preliminary convention for a new trade agreement during the 2018 G20 Buenos Aires summit, last January, Canada started out ratification thereof. With the purpose…

Zero waste – a movement that changes the world

With the entry into force of the ban on plastics in Mexico City, more than half of the 31 Mexican states are now trying to reduce the use of plastics through legislation. Since 01.01.2020, the issuing and sale of plastic bags is prohibited…