Mexico: The UGLIEST* Mexican Tax Obligation

Last Updated: 27 April 2005
Article by Ricardo Leon-Santacruz and Adriana Ibarra-Vazquez

Obligation to use Advance Electronic Signatures in 2004 Mexican Annual Tax Returns

For the last couple of years tax regulation have required that corporate taxpayers file all their provisional and annual returns electronically. However, a new twist has been added to the e-filing obligation for taxpayers who for tax year 2004 have a statutory obligation or assume voluntarily the obligation to file independent auditor certified tax returns ("Dictamen Fiscal"). As of their upcoming Dictamen Fiscal filing, whose deadline for e-filing is June 30, 2005, they must now used an Advanced Electronic Signature ("AES") which your company must have by May 31, 2005.

The Dictamen Fiscal must be filed by corporate taxpayers who in 2004 had: (i) taxable income in excess of approximately US$ 3’000,000; (ii) an asset base worth US$ 5’500,000; or (iii) withheld on a payroll of 300 employees or more.

To ensure compliance and proper AES handling, the Tax Law now provides that liability (including criminal) derived form its use and misuse will be attributed directly to the CEO or Board of Directors of the Company. A provision like this has no precedent in Mexican law and clearly evidences the government’s intention to aggressively move to e-filing and stringent compliance for the future, commencing this year.

Adopting AES for tax purposes requires, besides technology adjustments, developing security and legal policies. Additionally, AES are the launch pad for electronic invoicing, which is now viable in Mexico. Is your company ready? Below you will find a brief (ten questions) self-evaluation questionnaire, for you (or your IT Director) to determine whether your company is prepared to comply with this new obligation in Mexico.

We are, without doubt; the best positioned firm in Mexico regarding AES. From advising the Tax Authority itself in the implementation of its EPR, to helping in the drafting of the current e-contracting legislation; our specialists have been involved in the full array of legal services related to the Internet and overall tax compliance.

We will be glad to discuss with you, the results of the self-evaluation, and answer your questions as to how your company can benefit when implementing these mandatory requirements before the JUNE 30, 2005 deadline.

Self-Evaluation: ¿Are you ready for the FEA?

1. Does your company currently buy or sell by electronic means? (if you answer NO; please go directly to question 8)

2. Does your company verify the origin/identity of the purchaser or seller that performs electronic operations? (Validation Mechanisms)

3. If you answered YES to the previous question, How do you do it?

  1. Confirmation by telephone
  2. Confirmation by e-mail
  3. Password
  4. Asymmetric Encryption
  5. Other

4. Could your company demonstrate/know if the message (offer, purchase order, acceptance, etc.) has not been tampered? (Integrity)

5. Regarding the data messages that you send, are you certain that the information contained in them will not be modified?

6. Does your company keep records/archives of the transactions performed by electronic means?

7. Could your company assure/demonstrate that such archives will not be modified once filed?

8. Does your company have written policies regarding:

  1. Confidential Information
  2. E-Mail
  3. Internet
  4. Handling keys, passwords and system "privileges"
  5. Electronic Files

9. Are they complied with? How can you be sure?

10. Is there a specific person in charge of such security/validation mechanisms? (passwords, keys, PIN’s, etc) Is there a way to control such person’s activities?


If you (or your IT Director) answered "no" or "I don’t know" to questions 8, 9 and 10, your company is NOT yet ready to use the FEA WHICH IT MUST USE TO FILE THE INDEPENDENT AUDITOR CERTIFIED TAX RETURN BY JUNE 30TH, 2005.

If you answered "no" or "I don’t know" to questions 2, 4, 5, 6, 8, or 10; then your company is NOT yet ready for electronic invoicing. We suggest you to start working on it, why postpone the inevitable?

If you answered "YES" to all of the questions, it is advisable to deepen the analysis on questions 3, 7, 8 and 10. Probably your company is ready to start working on a DTR structure.

If the questions (or the answers) make you feel concerned, we can work together with you in order to assure that your transition to the Electronic Invoice world is as safe as possible for your company. For more information, we invite you to read our FAQS concerning the UGLY/FEA or visit our website, where you will find more information regarding this matter.


*The Advanced Electronic Signature for tax purposes is commonly known in Mexico by its acronym as the "FEA" (Firma Electrónica Avanzada); which, by a unwilling humorous twist of fate coincides with the Spanish female word for "UGLY".

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions