It should be clarified that the Value Added Tax (VAT) is not generated for the sale of shares.
And the tangible?
“It remains to be determined whether what Citi is going to sell are shares or it is going to sell other types of goods directly, it gives me the impression that it will only sell shares,” said Luis Pérez de Acha, tax attorney, and founding partner and director of the Pérez de Acha and Ibarra de Rueda office.
For example, the sale of cultural assets or the Citibanamex Center will depend on how the shareholding is structured. If the center is owned by a company, and that company owned by Banamex is sold, it will be sold for shares, and if it is sold for shares, it will pay ISR on the profit from the sale. If there was a direct sale of an asset, VAT would have to be paid, because in Mexico this tax is paid when commercial real estate is sold, the tax attorney detailed.
In addition to VAT, the disposal of assets generates ISR on the profit derived from the comparison of the sale price less the original amount invested or fiscal cost of the assets, CCPM specified.
Bank of America Securities estimates Citibanamex’s assets at 15.5 billion dollars, which must be purchased jointly.
Where will the money from the taxes paid by Citigroup go?
To the public coffers and will be considered as tax income, which, since they are not contemplated in the 2022 economic package, can be used where the government, through the Treasury, considers it appropriate, after notifying the Congress of the Union, Sergio Salgado detailed. Román, professor at the School of Law of the Intercontinental University (UIC), and dedicated to business counseling and strategic litigation.
“Billions of pesos would enter the public treasury for the development of the country, so that this budget continues to be allocated to the well-being of the people,” added the president, Andrés Manuel López Obrador, in a remote message last Thursday the 13th.
Whoever buys, whether national or foreign, Citigroup is obliged to pay the taxes generated by the sale of Citi, “and it will surely be a multimillion-dollar contribution to the treasury,” which will undoubtedly help, since we have a very strong financial problem in the country. to grow income: high inflation, low collection, slow recovery of the economy, says Salgado Román.
“The Treasury has the discretionary power to use those resources in something that was not budgeted, that is why the president is struck by the fact that the liquid money that arrives, not labeled, can be used for pensions, vaccines, health, whatever deem necessary. It is expected that the SAT will provide a timely follow-up, with a magnifying glass, to all these procedures”, concluded the UIC academic.
