EN 
ES Printable version | November 2021
The tax reform for 2022 proposes to establish greater requirements for the deduction of bad debts.
Currently, the Income Tax Law allows the deduction of bad credits due to the "notorious practical impossibility of collection", in debts bigger than 30 thousand investment units (approximate value $208,684.98 MX) provided that the debtor has been sued in court or arbitration. The foregoing has allowed taxpayers to apply this deduction from the moment the claim is filed or the arbitration proceeding is initiated.
The reform proposes expanding this requirement to oblige taxpayers to obtain a final resolution issued by the competent authority, with which they demonstrate that they have exhausted the collection procedures or, where appropriate, that it was impossible to execute the resolution. This means that taxpayers will have to postpone the deduction and that the legal expenses that they will have to pay will increase.
This treatment will be inapplicable to legal entities of the simplified trust regime proposed by the reform. Since these taxpayers will accumulate their income only until they receive it, so they will not have this problem since the deduction of these debts is made by taxpayers who earned income that was never collected.
We recommend that you identify your debts that exceed this threshold and analyze the possibility of promoting the legal procedures required for the respective deduction in this fiscal year, that is, before the entry into force of the reform.
***The publication of this note does not constitute a legal consultation, nor is it intended to apply to particular cases.
If you require additional information, please contact the responsible partner for your affairs or one of the lawyers mentioned below:
Mexico City Office
Lic. Mariano Calderón V. (Partner)
Lic. Karina Roblanddo. (Counsel)
Tel.:+52 55 5279.540
Monterrey Office
Lic. César Cruz A. (Partner)
Tel.:+52 81 8133.600
Queretaro Office
Lic. José Ramón Ayala A. (Partner)
Tel: +52 442 290-0290
