Foreign manufacturing companies in Mexico that comply with certain tax criteria and submit them in a “compliance report” to the governmental institution responsible for taxes in Mexico (Secretaría de Hacienda y crédito público) by the end of June of each year. The compliance report shows financial statements audited by a certified public accountant. It must include detailed dates of transactions and a signed opinion from the accountant guaranteeing that the information presented is accurate and complies with its tax responsibilities for the fiscal period presented.
In Mexico, accounting is presented according to international standards and practices by submitting accounting information to the authorities according to International Standards on Auditing and International Financial Reporting Standards (IFRS). This system allows for maintaining an international accounting standard and allows a better analysis for foreign companies and investors. In 2012, this modification was made to the group of accounting standards in the country in order to attract more foreign manufacturing investment to the country.
One of the accounting priorities of foreign companies is to detail the accounting records required by the Mexican Financial Reporting Standards Board. This regulatory organization administers and supervises the compliance of the accounting records and financial information of the company such as the following:
- Minutes of the Board of Directors and shareholders’ meetings
- Inventory records and trial balances
- All nominative activities
- A general ledger/journal
- All debts in foreign currency, credits, and cash
- The official address of the company must remain for at least 10 years in the primary books, records, and all supporting documentation.
- Statements must be filed and approved by the shareholders annually.
- Companies formed under a corporation with variable capital composition must have a statutory auditor appointed by the shareholder who is not an employee or executive of the company.
- Other requirements dictate that:
- Records must be in Spanish.
- Financial information should be in Mexican pesos.
Although accounting in Mexico may seem complex for foreign companies, there is a wide range of solutions to successfully comply with tax obligations.
If you already have an intention to start operations in Mexico, there are other points to take into account, such as the geographical area where you will carry out your operations or the facilities to produce successfully. At VYNMSA we are one of the leading industrial real estate developers in Mexico. In addition, we are able to develop your Build To Suit projects. Likewise, we actively work with industrial brokers as business partners, and we have around 20 inventory buildings ready for immediate occupancy, which adds up to a total of 1.7 million square feet of built space in the northeast and bajio region of Mexico.
Contact us and find out why VYNMSA is your best industrial real estate business partner in Mexico.
