Accounting in Mexico is more complex from a regulatory perspective than in other countries of the world. From an mandated electronic invoice format to validating supplier tax compliance to government standardized charts of account and tracking of Value Added Tax reimbursements, there are many unique requirements. We simplify these complexities and manage the details of accounting in Mexico. TACNA helps clients with hedging strategies to minimize foreign currency exposure.
For a supplier invoice to be tax deducible it must issued to your Mexican company, received in PDF and government mandated XML format and stored for a minimum of five years. In addition, companies operating in Mexico must validate vendors’ tax compliance through reference to a government blacklist. TACNA handles these government requirements and facilitates the timely remittance of payment to suppliers for invoices as authorized by the client. This is process is handled on a paperless basis through proprietary electronic tools.
Mexico requires specific accounting methodologies in connection with monthly and annual regulatory financial reporting. The Mexican government requires a specific chart of accounts and statutory accounting is performed on a cash basis. TACNA uses software for maintaining Mexican accounting records that is compliant with applicable Mexican regulations. TACNA interfaces with its clients’ headquarter accounting staff for corporate financial reporting of Mexico operations.
Statutory tax requirements for IMMEX companies in Mexico include a cost based income tax, a sharing of statutory profits with employees, and complex reporting of payroll taxes that include; retirement, disability, day care, housing, medical, and state tax. There are both employer tax and employee withholding taxes, for which the employer is responsible. Compliance with the taxes are regularly audited by federal, state and municipal agencies. TACNA manages these compliance functions through various Mexico compliant systems and processes for its clients.
TACNA establishes client US Dollar and Mexican Peso denominated bank accounts for settlement of the client’s obligations in Mexico. Many suppliers in the border region of Mexico will invoice in either Pesos or Dollars. Building rents, general contractors, and recycling suppliers are normally paid in dollars. TACNA electronically compiles a weekly cash request including approved vendor invoices and approved payroll for purposes of funding of operating costs in Mexico. Received cash is dispersed in accordance with client approved instructions and vendor terms.
