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Understanding the “Materialidad de las Operaciones” in Mexico

In recent years, the Servicio de Administración Tributaria (SAT) in Mexico has intensified its scrutiny of business transactions, placing special emphasis on the concept of Materialidad de las Operaciones (Materiality of Operations). This principle is crucial for companies and individuals conducting business in Mexico, as failing to provide sufficient proof of the legitimacy of transactions can lead to severe tax consequences....

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Understanding Service Provision Contracts in Mexico

When engaging in business in Mexico, one of the most important legal agreements you may encounter is a service provision contract (contrato de prestación de servicios). Whether you're hiring a contractor, consultant, or external service provider, having a solid contract in place is crucial to protecting both parties' interests....

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