Tax Obligations and Mexican Tax Administration System [] INMTEC Legal Services

Published August 28, 2023

Being a taxpayer in Mexico, you acquire rights and obligations by default. It is essential to know the regime we are in to correctly perform the mandatory process of paying tax, since once income is received for providing a service or for commercializing a product, people must comply with several obligations. Therefore, it is important to know what is the SAT and what are the various tax obligations: ISR, VAT, IEPS, and taxes for employees.

The SAT or Tax Administration Service: It is a dependency of the Federal Public Administration that is in charge of the collection, taxation, and surveillance of the fulfillment of fiscal obligations.

The ISR, which is the income tax: As its name says, it is almost like a rent that we pay to the federation for living in the country. The ISR applies to all income entering any individuals bank account, whether it is greater or less than 15 thousand pesos. If it is determined that by SAT that the money is from income (not from a loan or credit, for instance) it will be counted and taxed accordingly. There is a common belief that you do not pay taxes on cash deposits of less than 15 thousand pesos. However, tax must be paid from the 0.1 cents that comes into the account. The SAT can ask for your bank records and review them.

VAT or Value-added tax: A 16 percent value-added tax is added when acquiring goods or services in Mexico. It is a general tax that is passed on to the federal government and not registered as part of a business’s or an individual’s income.

“If I charge one thousand pesos and they pay me VAT (to invoice, for example) I have to declare it to the SAT. VAT is not part of the income”.

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INMTEC SERVICIOS LEGALES is a bilingual legal firm, offering legal advice, in Real Estate, Labor, Family and Corporate Matters, also counting with immigration procedures, as well as Litigation in Civil, Commercial, Criminal, Administrative and Tax Law. Our attorneys have four decades of experience in all the branches mentioned earlier. We focus on our clients with Enthusiasm showing great Interest, Professionalism, and Attention, reflecting these in your case, which likewise is done with efficiency and great performance. Making your experience with INMTEC SERVICIOS LEGALES pleasant and with the expected results. INMTEC SERVICIOS LEGALS offers offices in San Miguel de Allene and Mexico City, which are deserving of our clients and have the best technology and infrastructure to give our clients security and comfort during their process with INMTEC SERVICIOS LEGALES.

At your service Ing. Angel Marín Díaz, President and C.E.O. INMTEC SERVICIOS LEGALES S.A. by C.V Lic. Edgar Rayas Bautista Managing Director INMTEC SERVICIOS LEGALES S.A. by C.V

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