The CFDI has new complements related to revenue and expenditures in the hydrocarbons sector that must be submitted to Mexico’s tax administration. According to the Hydrocarbons Revenue Law, published on August 11, 2014, the tax administration has published requirements for CFDIs and deductible items for income tax, establishing the following:
- For the purposes of article 56 of the Hydrocarbons Revenue Law, contractors and assignees will present the tax payment declaration for the Hydrocarbons Exploration and Extraction Activity by way of the tax administration’s Internet Portal through the Declarations and Payments Service.
- Also for the purposes of articles 39, 42, 44, 45 and 52 of the Hydrocarbons Revenue Law, assignees will present the payment declaration for the extraction of hydrocarbons and the exploration of hydrocarbons as well as the presentation of provisional and annual declarations for shared utility rights by way of the tax administration’s Internet Portal through the Declarations and Payments Service.
In order to present the declaration for these taxes in the tax administration’s portal, two file structures have been defined so that the corresponding figures can be declared regarding expenses or income related to the Hydrocarbons Exploration and Extraction Activity.
The first of these structures was created for the declaration of revenue, known by the tax administration as a Complement for Income attributable to the Members of a Consortium derived from the consideration of a Contract for the Exploration or Extraction of Hydrocarbons.
This complement will be composed of the following information:
- Contract Number: Assigned by the National Hydrocarbons Commission with which income is linked.
- Paid Operator Consideration: Total amount paid to the consortium operator.
- Percentage: Percentage of CFDIs that each consortium member issues to the operator with respect to the total number of considerations delivered to the consortium operator by the FMP.
- Fiscal Folio: The UUID of the CFDI issued by the operator of the FMP consortium must be reported. This is what the tax administration has been doing with most of its complements and this is no exception.
- Fiscal Folio Date: This information must be expressed in yyyy-mm-dd and must indicate the month corresponding to the CFDI issued by the consortium operator to the FMP. This value must be specified based on a catalog (catHydrocarbons).
The second structure that the tax administration defines for these purposes is dedicated to the declarations of expenses related to the Hydrocarbons Exploration and Extraction Activity, called the Complement for Consortium Expenses derived from the Execution of a Hydrocarbons Exploration or Extraction Contract. It is a much more robust complement than the previous one in which users will have to declare information such as:
- Hydrocarbon Expenses: This node will have to indicate information such as the Contract Number assigned by the National Hydrocarbons Commission and the contractual area used to specify the cost center to which the cost is related.
- Disbursement: The type of disbursement (cost, expenditure, investment) made by the operator will be indicated as well as the percentage that represents the CFDI’s total amount of costs, expenses or investments issued to the consortium member for the month in question in relation to the total amount of vouchers issued to the consortium operator.
- Related Document: In this node, the tax administration’s inclination has been to announce the relation of the voucher, the UUID related to the expense, other information such as the origin of the disbursement (national or foreign), the tax ID number of the supplier, the total amount of the VAT and income tax, the VAT or other taxes withheld, the number and key of linked requests, the payment key for the linked document, and other data as well as information that make this node more robust in terms of the relationship that should exist with other documents.
- Activities: In the same way, the activity for which the expense or investment is made must be declared in accordance with the guidelines for the preparation and presentation of costs, expenses, and investments issued by the Ministry of Finance and Public Credit. It should be defined based on a catalog (catHydrocarbons) so that users can identify if the expense was made for exploration, evaluation, development, production or even abandonment. Also, if there is any Sub Activity associated with the same cost, users will have the possibility to make note of it by indicating the task to be performed. The latter will also use values in the catalog (catHydrocarbons).
- Cost Center: It will be used to specify the cost center to which the cost is related.
- Deposits and Wells: It will be used to specify the cost center of the deposit and/or the well to which the cost, expense or investment is related.
If your company is being affected by the use of any of these add-ons, get in touch with us so that we can help you identify the solution that suits your business best.