Article 32-B Quater of the Mexican Federal Fiscal Code

Article 32-B Quater of the Mexican Federal Fiscal Code:

For the purposes of this Code, the controlling beneficiary shall be understood as the individual or group of individuals who:

1. Directly or through another or others or any legal act, obtains or obtains the benefit derived from their participation in a legal entity, a trust or any other legal figure, as well as from any other legal act, or is who or who ultimately exercises or exercises the rights of use, enjoyment, enjoyment, use or disposition of an asset or service or on whose behalf a transaction is carried out, even and when they do so or do so in a contingent manner.
2. Directly, indirectly or contingently, they exercise control of the legal entity, trust or any other legal entity.

It is understood that a natural person or group of natural persons exercises control when, through the ownership of securities, by contract or by any other legal act, it can or they can:

1. Impose, directly or indirectly, decisions in the general meetings of shareholders, partners or equivalent bodies, or appoint or dismiss the majority of directors, administrators or their equivalents.
2. Maintain the ownership of the rights that allow, directly or indirectly, the exercise of voting rights in respect of more than 15% of the capital stock or.
3. Directly or indirectly direct the administration, strategy or main policies of the legal entity, trust or any other legal entity.

In the case of trusts, the trustor or trustors, the trustee, the trustee or trustees, as well as any other person involved and who ultimately exercises effective control in the contract, even on a contingent basis, will be considered controlling beneficiaries. The Tax Administration Service may issue general rules for the application of this article.

For the interpretation of the provisions of this article, the Recommendations issued by the Financial Action Task Force and by the Global Forum on Transparency and Exchange of Information for Tax Purposes organized by the Organization for Economic Cooperation and Development, in accordance with the international standards to which Mexico is a party, shall be applicable, when their application is not contrary to the nature of the Mexican tax provisions.

Article added by the Decree amending, adding and repealing several provisions of the Income Tax Law, the Value Added Tax Law, the Law of the Special Tax on Production and Services, the Federal Law of the Tax on New Automobiles, the Federal Tax Code and other regulations, published in the Official Gazette of the Federation on November 12, 2021.