In 2022, all Mexican citizens and residents will be required to register with the Federal Register of Taxpayers and obtain an RFC tax number. Topping up bank cards with cash without RFC will be controlled. There is a penalty for failure to receive an RFC. Such proposals were put forward by the Ministry of Finance and Public Credit (SHCP), sending a corresponding bill to reform the Tax Code to the Mexican Parliament. The purpose of the reform — «promoting tax culture among Mexican youth in order to limit tax evasion».
Changes to Article 27 of the Federal Tax Code (CFF) require that all «legal residents of Mexico» (citizens and residents) who are over 18 years of age are required to have an RFC tax number regardless of whether they are carrying out any economic activity or not. The Tax Administration Service (SAT) must ensure mandatory registration in the Federal Register of Taxpayers with the issuance of an RFC. Currently, only those who receive any income are required to purchase RFCs.
Sections 79-80 of the Tax Code will define the criteria under which the absence of an RFC will be considered a violation of the law. For refusal to receive an RFC, fines range from MXN 3,870 to MXN 11,600. Members of parliament were asked to establish a transition period during which fines would not be applied.
The procedure for obtaining an RFC tax number will be simplified. As now, citizens have the right to register in the Federal Register of Taxpayers online, issue a tax identification card (CIF) with an RFC number online, then download it in PDF format and print it for proper use. The bill says nothing about changing the way resident aliens receive RFCs. Therefore, after registering with the registry online, they may have to visit an SAT office in person to obtain an RFC. The issue of receiving an RFC by residents without a work permit also remains unclear — Article 27 of the Tax Code does not make exceptions for them.
There are no plans to reform the basic articles of the Tax Code that define the principles of tax administration for individuals. This means that if an individual does not carry out an economic activity and does not earn income, he has the right not to file tax returns with the SAT.
Another interesting point of the proposed reform of the Tax Code — control over cash receipts on bank cards. If the card is topped up in cash and the cardholder does not have an RFC, the Tax Administration has the opportunity to demand an explanation of the source of the money. When the explanation is unsatisfactory, the cardholder will be asked to pay income tax (ISR), and also submit an annual return, in other words, again receive an RFC. At the same time, payments made between bank deposit accounts via the Spei electronic payment system will be exempt from such controls.
We add that back in 2020, the Tax Administration Service ordered Mexican banks not to provide the CLABE code required for making Spei transfers to those clients who do not have an RFC. Without CLABE, purchasing non-cash transfers to a card is also impossible. At the same time, customers of banks that previously received CLABE have the opportunity to make interbank transfers without RFC.
Other proposals include changes to the laws on value added tax, income tax, special tax on products and services, tax on new cars, and in addition to the Federal Tax Code, which will then be reflected in the Tax Book and Customs Tariff for 2022.
Let us add that the Federal Revenue Law for the 2022 financial year has already been adopted by the Chamber of Deputies — lower house of the Mexican Congress. Key financial and legal committees of the upper house — Mexican Senate — approved it without discussion «in an accelerated mode».