Reduction of 2020 Tax Prepayments

As we all know, the Mexico's economic performance has led industry, commerce and service provision in general to receive lower taxable income for several months, which must necessarily be reflected in a decrease in income tax to be paid on an annual basis and obviously with regard to the prepayments that should be reported to the tax authorities by taxpayers.

 In this regard, and that your company comply with the assumptions to be able to request a reduction of tax prepayments for 2020 tax year, I would like to inform that on Friday, July 17, such requested should have been submitted through the tax mailbox before tax authorities, in order to give them some time to evaluate the reduction request and, when appropriate authorize said reduction and apply it as of july 2020 prepayment.

Notwithstanding the foregoing, in the event that you have not submitted such authorization request to reduce provisional payments as of July 17, 2020, we suggest that it be done as soon as possible in order to apply the relative reduction, which could supporting your company from the cash flow point of view, which currently is real oxygen for the survival of companies.

Remenber...Cash is King!