Companies must submit their annual declaration for the fiscal year 2022 no later than March 31, 2023.
The Tax Administration Service (SAT) announced the new annual declaration format that legal entities will have to use on December 20, 2022, in which modifications were made.
According to Reformation, The Mexican tax authority now asks for more information and at a higher level of detail, so that taxpayers can timely collect the data required to fill out the form.
Specialists from the firm Russell Bedford, exposed to the medium the changes that the new format of the SAT has. Below we detail the modifications:
financial statements
In the format of each financial statement, the SAT added a column in which the taxpayer may include explanatory notes for up to a total of 300 characters.
It is important to point out that the financial statements section will only be enabled if the legal entity does not rule on its financial statements and does not present information on its fiscal situation.
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Comparison of fiscal years
the sat is requesting the comparison in the financial statements with respect to those of the previous yearspecifically from the comparison of the statements of cash flows and changes in stockholders’ equity for 2022 with respect to the year 2021.
This adjustment implies that the information on short and long-term assets-liabilities must coincide with that reported in the previous year, or else it may lead to the SAT inquiring about the differences.
Income
The authority added the detail of exempt and non-cumulative income, because if the company did not have this type of income, it must state it.
There are also new concepts of cumulative income that will need to be broken down. For example, profit from derivative operations referring to an exchange rate, tax profit from the sale or assignment of a portfolio, gain from derivative operations at an exchange rate or, rather, the consolidation of bare ownership.
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Comparative accounting-tax reconciliation
In the new declaration format, the fiscal result of the year is now determined, when previously the fiscal utility was obtained. The tax result in this section will be compared with the tax result determined in the ISR section for legal entities and if there is a difference, an error message will be displayed.
In the same way, each item of the tax accounting reconciliation must be detailed based on pre-established classifications. In the integration of non-tax accounting deductions, concepts such as provisions, results from valuation at fair value, among others, are included.
In addition, the concept of “Others” is eliminated, which can generate a practical problem, since, depending on the characteristics of each taxpayer, there are various concepts for their reconciliation items that are not necessarily contemplated in the application.
deductions
New concepts are added such as payments of the special right on mining, toll payments, penalties, expenses made for investment and technological development in the integration of authorized deductions and their breakdown.
In the detail of the deduction of investments, a list is presented with the groups of assets and the subgroups that derive from each of these.
In this section for the 2022 financial year, the group of expenditures for pre-operating periods was added, including exploration expenses (mainly for mining companies), as well as research and development expenses.
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