Net Tax Profit Account (CUFIN)

The net fiscal utility account (CUFIN) represents the accumulated profits generated by the companies having already paid the corresponding income tax (ISR) and, therefore, with the right to be distributed among the partners or shareholders of the mercantile companies without that its distribution generates the payment of more contributions.

Article 77 of the Income Tax Law establishes that companies will have a net fiscal profit account and that said CUFIN will be added with the net fiscal profit of each year, as well as with the dividends or profits received from other resident legal entities in Mexico and with income, dividends or profits subject to preferential tax regimes.

The balance of the account that is held on the last day of each fiscal year, without including the net fiscal profit of the same, will be updated for the period from the month in which the last update was made and until the last month of the fiscal year in which it was carried out. try

When dividends or profits are distributed or received after the update, the balance of the account held at the date of distribution or collection will be updated for the period from the month in which the last update was made. and until the month in which the dividends or profits are distributed or received.

For the approval of the dividend payment assembly, the corresponding information must be accompanied and an express reference made that the payment of dividends is made against the CUFIN

In the case of merger or spin-off of mercantile companies, the CUFIN must be transferred totally or partially to the remaining entities, as the case may be. In the event of a spin-off, said balance will be divided between the spin-off company and the spin-off companies, in the proportion in which the share capital is split in the statement of financial position approved by the shareholders' meeting and which served as the basis for the split. perform the excision.