End of the universal offsetting process
On December 28th, 2018, the Federal Revenues Law for 2019 was published in the Official Gazette of the Federation.
Pursuant to Article 25, Section VI of the Federal Revenues Law for 2019, taxpayers may choose to offset amounts that have in their favor against those who are required to pay on their own, provided that they derive from the same tax, including accessories.
The balances in favor generated until 2018, in principle can be offset against any federal tax due (universal offsetting process). It is expected the previous standard to be confirmed by the Fiscal Miscellaneous Resolution within the following days.
The only option left is to request for refund before the Tax Administration Service (“Servicio de Administración Tributaria”). When requesting for refund, it must be for the total amount of the balance in favor.
It is possible to analyze if the previous provision breaches the taxpayer´s constitutional rights as provided for by the Mexican Constitution. This creates the opportunity to challenge it, in order to reinstate the right to offset tax favorable balance against federal tax due (universal offsetting process).