New procedure for the cancelation of the Federal Taxpayers’ Registration due to merger

Following several months during which this formality became a very complex and practically impossible process, this new rule has been issued, which will be used to submit the information electronically so as to subsequently obtain an appointment, with the intention of being able to duly meet the necessary requirement so that the merger is not considered as a sale.

This amendment arises in virtue of that, during this pandemic, activity in the offices of the Tax Administration Service (SAT), including the availability of appointments, was reduced in terms of capacity for attending taxpayers, so that anyone who performed a merger were prevented from complying with the requirement to file the merger notice.

This new rule becomes even more important given that in order to comply with the new provisions on outsourcing, the number of companies that carried out mergers has increased exponentially.

The process will be requested by the legal representative of the merging company, within the month following the one in which the merger is performed. An appointment will be requested within 20 days following the holding of the partners’ meeting, attaching the required documents, and a reply will be given in a maximum term of 6 days, with the date and time of the appointment.

Required documentation

  1. Official Form RX “Liquidation, merger, spin-off and cancelation of the Federal taxpayers’ Registration notices form”, signed by the legal representative
  2. Notarial document, duly certified, containing the merger
  3. Proof of address
  4. Valid official identification of the legal representative
  5. Notarial power of attorney attesting to the legal capacity of the legal representative
  6. Notarial document in which the legal representative has been designated
  7. Acknowledgement of cancelation from the list of vulnerable activities

Conditions for the procedure

  • To have filed the annual tax return of the merged company
  • Declaration of the merging company that it assumes the obligations of the merged company
  • Have a valid e.signature of the merging legal entity and of the legal representative
  • Have an active tax inbox
  • The status of the tax residence must be located

How is the process completed?

  1. Go to the Offices of the SAT, with a prior appointment and with the aforementioned documentation
  2. Hand over the documentation to the tax advisor covering the process
  3. Receive the acknowledgement of receipt of the information for the Federal tax Registration cancelation or updating process, check it and sign it
  4. In the case that you meet the requirements, receive the official form RX, sealed and numbered as acknowledgement of receipt, together with the document mentioned in the previous point
  5. Enter the Portal of the SAT 45 days after the filing of the process, to check that the notice has been registered
  • If the legal entity now appears as canceled, you can generate the certification of tax status
  • In the case that when making your inquiry, the notice has not yet been registered, go to the office of the SAT where you filed the notice

If you have any doubts about this topic or need any help, don’t hesitate to contact Mazars.