A reasonable time period for paying a dividend is 2-3 weeks.

Yes, dividends can only be declared and paid after the approval of the financial statements.

However, there is no restriction to pay dividends any time of the year or more than one time in a year. Bylaws of the Company must be reviewed to confirm if additional formalities are required. 

It is intended that profits are paid on annual basis according to the past annual financials, however, interim dividends are not prohibited if the by-laws have no restrictions.

Financial statements approved by shareholders meeting, it is recommended these are audited but not mandatory.

Yes, up to the amount of profits or retained earnings that appear in the financials.

Not customary, in such case through a shareholders' meeting, 2-3 weeks

No regulatory approvals are required in connection with payment of a dividend.

No foreign exchange controls, the dividends will be in pesos and are then converted for payment to the foreign parent.

No restrictions from a corporate law perspective on borrowing cash to settle a dividend. From a tax perspective, interest derived from loans used to pay dividends would not be deductible, because the loan is not used for purposes of the business. Likewise, the payment of dividends paid with borrowed funds is considered a relevant transaction that must be declared through an information return (From 76).

Yes, dividends in kind are possible, provided that stockholder agree to accept a dividend in kind. From a tax perspective, dividends in kind are considered a sale of goods subject to taxation on gains derived therefrom.

Yes, the annual financial statements of the fiscal year from which the dividend will be paid, must be approved before the decree and payment of the dividend, losses shall be restored and legal reserve conformed.

No, there are no restrictions from a corporate law perspective on lending funds intra-group but cross-border.

From a tax perspective, in the case of loans from foreign related parties to Mexican residents or Mexican permanent establishments, the interest paid by the Mexican taxpayer may be considered a deemed dividend (i.e., the tax treatment of dividends should apply) when: (i) the debtor makes written unconditional promise to pay partially or totally the credit received, at a determinable date by the creditor; (ii) the interest is not deductible -i.e. it was not established based on fair market value; (iii) by virtue of the debtor's default, the creditor is entitled to intervene in the management or administration of the debtor entity; (iv) the interest payable by the debtor is conditioned on obtaining profits or the amount is set based on those profits; and (v) the interests derive from back to back loans, even when they are granted by either a Mexican or foreign financial institution. Furthermore, interest deduction for Mexican taxpayer is limited by thin capitalization and 30% on "tax EBITDA" threshold, transfer pricing and inflation adjustment rules.

Likewise, in the case of loans from Mexican companies or permanent establishments to foreign related parties, the interests shall be determined at fair market value. In the case of loans to individuals or foreign resident shareholders, interest shall be at least equivalent to the rate indicated in the tax laws for the extension of tax payments publishes every year (0.98% per month for 2020) and the loan term shall be maximum one year.