Have cash at home It is a common and often convenient practice for many people. However, it is important to understand the tax and legal implications of holding large amounts of cash unreported to the Service tax administration (SAT) in Mexico.
You should know that the SAT is the authority in charge of collecting taxes and enforcing tax laws in Mexico. Although It is not illegal to have cash at homethe SAT requires that any person who has significant income and expenses declare the origin of that money.
This is done to avoid tax evasion and guarantee that citizens comply with their tax obligations. It is essential to know the limits established by the SAT for the use of cash in various transactions.
For example, if you plan buy a property and the transaction amount exceeds $832 thousand 513 pesos for this 2023you must inform the financial authorities and the SAT about this operation.
Likewise, if you want buy a car and you plan to make the payment in cash, the established limit is $333 thousand pesos for this 2023.
These limits also apply to the purchase and sale of jewelry, the rental of real estate, and gambling.
In the case of the cash deposits in bank accounts, banks are required to inform the SAT when cash deposits are made for significant amounts, generally more than 15,000 pesos. This is done to track possible suspicious money laundering activities.
If you exceed the limits established by the SAT for the use of cash in these transactions, you could face tax and legal problems.
The SAT could interpret that there is a tax discrepancy between your income and expenses, which could result in tax audits and penalties.
It is clear that, while having cash at home is not illegal, it is crucial to understand the regulations and limits established by the SAT in Mexico.
Declaring and proving the origin of large sums of cash is necessary to comply with tax obligations and avoid problems with the tax authorities.
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