The annual declaration before the Tax Administration Service (SAT) It is a very important moment for taxpayers in Mexico, both individuals and corporations. In the month of April that begins, the turn is now for the Physical persons.
This process, far from being a mere formality, constitutes the basis on which the state can finance public services and development projects. In Debate we explain more about this procedure, its requirements, and how not complying can affect you.
Importance of the annual declaration:
The annual declaration is the process through which we inform the SAT about the income and expenses generated in the previous fiscal year.
It is very important to ensure fair and equitable contribution to the maintenance and development of the infrastructure and public services from the country.
Who is required to submit an annual return?
All taxpayers, both individuals and legal entities, are required to submit their annual return. The month of April is the time in which natural persons are called to declare before the tax authority.
The method of filing varies: individuals can choose to file online or in person. If you are a natural person and do not have income greater than $400 thousand pesos, you are not obliged, but you can present it to deduct expensesif necessary and you can get a refund.
SAT invitation letters
Recently, the SAT has sent invitation letters to those taxpayers who, having received salary income from two or more employers, They exceeded $400 thousand pesos.
The Taxpayer Defense Attorney (Prodecon) emphasizes the importance of attending to these invitations to avoid sanctions.
Obliged to disclose according to Prodecon:
There are several cases under which you are required to submit your annual return:
- Income diversification: If you obtained additional income than your salary, such as from rentals, business activities, professional activities, interests, among others.
- Job changes: By ceasing to provide services before December 31 or by working simultaneously for two or more employers.
- Surplus income: If your income from salaries and wages exceeds 400,000 pesos.
- Income from abroad: For income from a foreign source of wealth or from entities not required to withhold taxes.
Allowed deductions for individuals:
Within your annual declaration for fiscal year 2023, you can reduce your tax burden by declaring certain expenses, such as:
- Medical, dental and hospital expenses.
- Purchase of optical lenses for up to $2,500 pesos.
- Funeral expenses.
- Health insurance premiums.
- Real interest on mortgage loans.
- Donations, mandatory school transportation, and tuition from preschool to high school.
- Voluntary contributions to the retirement fund and local taxes on salaries.
Fines for not declaring on time:
Failure to comply with this tax obligation may result in fines ranging between $1,400 and $17,370 pesos for each obligation not declared on time. In specific cases, fines can increase significantly.
Be very careful: As established in the Federal Tax Code, for invoices to be valid To deduct taxes, it is essential that they include the precise information of both the issuer and the recipient.
Furthermore, the payment corresponding to the deductible concepts must be made through electronic payment methods, such as bank transfers, or by using credit or debit cards, or checks.
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