Derived from the recent changes and in accordance with the requirements established in the Mexican legislation and the rules of information and presentation for the fiscal year (EF) 2017, the dates of presentation of the main requirements in terms of transfer prices are the following:

1. Informative Declaration on Tax Situation (DISIF) 1 Article 32H of the Federal Tax Code (CFF), active during the 2017 EF, establishes the obligation of taxpayers to submit the Informative Statement on Tax Situation (DISIF) under the following provisions:
2. Those who are taxed in terms of Title II of the Income Tax Law, which in the last previous fiscal year has been recorded in their normal statements cumulative income for purposes of income tax equal to or greater than an amount equivalent to $708,898,920 as well as those that, at the closing of the immediately preceding fiscal year, have shares placed among the large investing public, on the stock exchange and that do not they are in any other case mentioned in this article.
3. Commercial companies that belong to the optional tax regime for groups of companies under the terms of Chapter VI, Title II of the Income Tax Law.

III. The parastatal entities of the federal public administration.

1. The legal entities resident abroad that have a permanent establishment in the country, only for the activities they carry out in such establishments.
2. Any legal entity resident in Mexico, regarding operations carried out with residents abroad. Relevant dates regarding Transfer Pricing for fiscal year 2017. In the case of section V mentioned above, taxpayers who are obliged to submit the Informative Declaration on Tax Situation (DISIF) for having been located only in the case that such section refers, may choose not to present it when the total amount of operations carried out with residents abroad in the Fiscal Year is less than $ 100'000,000.00 (One hundred million pesos 00/100 MN)

Taxpayers obliged to submit the Informative Declaration on Tax Situation (DISIF) must do so in conjunction with the Annual Statement of the fiscal year. The above represents a significant change in the dates of presentation of the Informative Declaration on Tax Situation (DISIF) and Annex 9 of the Multiple Informative Statement (DIM), since in the 2016 EF, both statements had to be presented at the end of June, while for the Fiscal Year 2017 (and subsequent), must be submitted until March 31st of the year subsequent to the closing of the fiscal year.

As of today, the Tax Administration Services (SAT) has not issued any official pronouncement related to a possible extension of the filing date of the Informative Declaration on Tax Situation (DISIF).  Therefore, taxpayers must begin to prepare all the necessary information to guarantee compliance.  Sanctions related to non-compliance or partial compliance related to intercompany transactions range between $12,080 and $ 120,760 pesos.

1. Tax opinion

Beginning with the Fiscal Year 2014, Mexican companies that meet any of the following criteria have the option of submitting, by July 15th of the year following the closing of the Fiscal Year in question, Tax Opinion prepared by an external auditor:

• Accumulated income from the previous year of at least $109.9 million pesos
• Total assets of at least $86.8 million pesos
• 300 employees or more; or
• When the company is controlled by another company (Mexican or foreign) that meets the above criteria.

Taxpayers who exercise the option of presenting the Tax Opinion, will have fulfilled the obligation to present the Informative Declaration on Tax Situation (DISIF).

It is important to mention that the obligation for taxpayers who choose to prepare the Tax Opinion remains unchanged; this means that the expiration date for sending this obligation is no later than July 15th of the year subsequent to the fiscal year in question.

III. Multiple Informative Statement - Annex 9

According to Miscellaneous Tax Resolution (RMF) 3.9.3 for 2017, published in the Official Gazette of the Federation on December 23rd, 2016, it is established that for purposes of article 76, section X of the Income Tax Law (LISR), Taxpayers who entered into transactions with related parties residing abroad and Article 32-H of the Federal Tax Code (CFF) must submit Annex 9 of the Multiple Informative Statement (DIM) no later than March 31st, 2018. It should be noted that rule 3.9.3 of the Miscellaneous Tax Resolution (RMF) still establishes that taxpayers who submit a Tax Opinion may submit Annex 9 of the Multiple Informative Statement (DIM) until July, together with the presentation of such opinion.

1. Informative Statements Periodic Economic Benefits (BEPS)

Article 76-A of the Income Tax Law (LISR) establishes the obligation to submit annual informative statements regarding transfer prices for the taxpayers indicated in article 32-H, sections I, II, III and IV of the Federal Tax Code (CFF).

The three statements to be presented as of the Fiscal Year 2016 are the following:

1) Master Informative Statement of the Multinational Group (Master File)

2) Local Information Relative Statement (Local File) The master and local statements are applicable only if the taxpayer complies with one of the provisions set forth in article 32-H, sections I, II, III and IV of the Federal Tax Code (CFF) and carry out transactions with related parties. (These provisions are mentioned previously in the section of   I. Informative Declaration on Tax Situation (DISIF)

The deadline to comply with the presentation of the local informative statement and the master informative statement is December 31st of the following year of the fiscal year in question.

3) Informative Statement, Country by Country (Country-by-Country Report)

This annual informative statement is only applicable to multinational holding companies resident in Mexico with consolidated earnings of $12,000 million pesos or if the entity is assigned by the Multinational Group as responsible for presenting the report.

Anticipated Bilateral Price Agreements (BAPA)

Finally, regarding the bilateral procedures of Anticipated Price Agreements (APA), the US Treasury (IRS) has announced that it expects an increase in fees in a two-stage process, the first as of June 30th, 2018 and the second as of December 31st, 2018.