Changes and updates of legal representatives according to tax legislation.

Due to the dynamism of the markets, it is more common for companies to change their legal representatives, regardless of the line of business and place of origin of the company.

Such changes, although they require a transition period, are not usually complicated; however, there are multiple ramifications involved that must be addressed in order to make a proper change of legal representative.

When making the change of legal representative, the first thing that is usually considered is the shareholders meeting where the change is agreed upon or the update of the powers of attorney, however, it is important to emphasize that there is also an obligation to update before the Tax Administration Service (SAT, for its acronym in Spanish).

The update of the legal representative before the SAT becomes relevant for legal entities in the compliance of their tax obligations.

This process used to be carried out through the exhibition of public deeds or proxy letters signed before witnesses; however, the updating of the legal representative has been specifically regulated for this 2024, which defines a specific procedure to comply with this updating obligation.

According to rule 2.4.15 of the Resolución Miscelanea Fiscal (RMF), it is mandatory for corporations to update the information of their legal representatives before the SAT.

This rule adds the incorporation, update or change of the information of legal representatives, since before the reform, only the modification or incorporation of partners, shareholders, associates and other persons that are part of the organizational structure of a legal entity was contemplated.

The necessary documents include a digitalized power of attorney, valid official identification, and, in case of cancellation of the legal representative, a notarized document of revocation of powers. This update is made by means of form 295/CFF of Annex 1-A of the RMF.

Although the obligation of this update is not explicitly mentioned in the Federal Tax Law, its inclusion in the RMF makes it a mandatory requirement.

This change reflects the clear trend that we have pointed out before, about the famous regulation towards the controlling beneficiary under the figure of persons that control the company’s operations.

At Vega, Guerrero & Asociados, we can help you with specialized advice on tax matters in relation to tax obligations before the authorities, as well as provide you with updated information and advice on tax matters.

Vega, Guerrero & Asociados specializes in the process of structuring and executing the respective legal defense in relation to fines and/or verification proceedings carried out by the tax and administrative authorities.


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