New Developments in Transfer Pricing: Substantive Obligations and Contractual Support 2026

Image

As of December 28, 2025, and its updates in January 2026, the Miscellaneous Tax Resolution introduces strict guidelines for transactions between related parties. The tax authority has determined that formal compliance is no longer limited to possessing an economic study, but requires material and legal verification of each transaction.

The following summarizes the pillars of compliance for this period:

1. Institutionalization of Contractual Support

    • Contract Mandate: It is established as an essential requirement that all transactions with related parties (domestic or foreign) be based on a written contract.
    • "Certain Date" Requirement: For contracts to be valid for audit purposes, they must have elements that prove their existence over time (ratification before a notary public, advanced electronic signatures, or official records).
    • Technical Alignment: The terms established in the contract (distribution of risks, functions, and assets) must strictly coincide with what is analyzed in the Transfer Pricing Study.

2. Proof of Economic Substance

    • Proof of Benefit: When receiving intragroup services, the taxpayer must demonstrate that the service effectively generated economic or commercial value, providing evidence such as logs, deliverables, and communications.
    • Materiality of Expenses: The deductibility of generic "management fees" is no longer permitted. A breakdown of the provider's costs and expenses is required, ensuring that the applied profit margin is reasonable and documented.

3. Updating Transfer Pricing Adjustments

    • Implementation Deadlines: The 2026 Miscellaneous Tax Resolution specifies that the adjustments necessary to bring transactions to market value must be recorded in the accounting records within the same fiscal year.
    • Symmetry and Deductibility: An adjustment will only be deductible if tax symmetry is demonstrated; that is, that the counterparty has accrued the corresponding income, preventing the erosion of the tax base in Mexico.

4. Auditing of Domestic Operations

    • Focus on Local Groups: Oversight of transactions between Mexican companies within the same group is intensified. The tax authority seeks to prevent the transfer of profits from a loss-making entity to a profitable one, or between entities with different effective tax rates, without a documented business reason.

Compliance Checklist for Year-End 2026

Supporting Element

Required Status

Impact of Non-Compliance

Operating Contract

Signed and dated.

Non-deductibility of the expense.

Economic Study

Updated with comparables for 2025-2026.

Penalties for incomplete declaration.

Material Evidence

Deliverables, emails, and reports.

Recharacterization of the transaction.

Information Statements

Presentation of Local, Master, and CbC Files.

Suspension of digital seals.

Main Source:

https://www.dof.gob.mx/nota_detalle.php?codigo=5778060&fecha=09/01/2026#gsc.tab=0

  • Regulatory Section (RMF):
    • Title 3, Chapter 3.9: Income from Activities with Related Parties (Rules 3.9.1 to 3.9.19).
    • Rule 3.9.1.1: Specifications on Transfer Pricing Adjustments and Their Deductibility.
  • Technical Section (Annexes):
    • Annex 1-A: Procedure Forms 101/ISR (Local File), 102/ISR (Master File), and 103/ISR (Country-by-Country).
    • Annex 16: Instructions for completing the tax audit report in the section on transactions with related parties.

Related Legal Basis: Federal Tax Code (CFF), Articles 76, 76-A, 179, and 180.