With the Economic Package for 2022 (Paquete Económico para 2022) Mexico decided to increase its compliance with international reporting standards, with particular reference to automatic exchange of information (AEOI).
In fact, as of 1 January 2022, companies, trusts, partnerships and other legal entities have to gather and retain accurate and up-to-date information on beneficial owners and make them available to the Tax Administration Service (Servicio de Administración Tributaria, SAT).
This is also valid for notaries or other intermediaries which are involved with the formation or execution of agreements related to the execution of Mexican trusts or incorporation of legal entities.
For what concerns Mexican trusts, the settlor, trustees, and beneficiaries, or any person involved in the contract that ultimately exercises effective control over the trust is considered a beneficial owner.
Failure to comply with these requirements may result fines between MXN 500,000 (U.S. $20,000) and MXN 2 million (U.S. $100,000) per beneficial owner, as well as in administrative sanctions.
Changes to the information previously provided must also be reported within a time period of 15 days.