Among the obligations that IMMEX companies need to fulfill to be in compliance with their Program authorizations, they must carry out annual export sales greater than USD $500,000 or representing at least 10% of their total sales.
For purposes of verifying compliance with such obligation, IMMEX companies are required to electronically submit before the Mexican Ministry of Economy, an Annual Operations Report informing of their total amount of sales and exportations for the immediately preceding tax year (in Mexico fiscal years run from January to December), no later than the last business day of May.
IMMEX companies must keep all the documents and records pertaining to the above-mentioned report for up to five years (statute of limitations according to the Mexican Federal Tax Code).
Failure to submit their Annual Operations Report would allow the Ministry of Economy to suspend the benefits of the IMMEX Program, as well as to initiate a cancellation procedure, and eventually to cancel the Program. Moreover, failure to meet the annual exports sales threshold would also lead to the cancellation of the Program.
Due to the COVID-19 pandemic and the shut downs of non-essential businesses and activities that occurred in Mexico during 2020, the Mexican Ministry of Economy has recently announced that, for purposes of the 2020 Annual Operations Report to be filed in May of 2021, IMMEX companies will be exempted from meeting the export sales threshold with respect to the 2020 fiscal year.