Doing Business

Doing Business in Mexico 2015

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122 Tax and Legal Services - PwC Mexico Individual taxpayers Assessments In general, the tax system relies on withholding and advance tax payments from individuals as the basis for enforcing compliance with the income tax law. Also, annual personal income tax returns are required for most situations. Imputation of taxable income When individuals spend more than the income shown in their income tax returns during a calendar year, the tax authorities are authorized to consider the excess of such expenses over the income declared as additional taxable income for the individual. After notification, the taxpayer is granted a period of 15 days within which to file a protest and 20 days to prove a case. Otherwise, the authorities will issue the corresponding additional tax assessment. In addition, certain non-taxable items must be disclosed in the annual tax return, otherwise they will be considered taxable. Tax returns Most individuals receiving income during the calendar year are required to file an annual tax return no later than April 30 of the succeeding year. Individuals with less than Ps$400,000 or about US$30,000 of salary income, in most cases, are not required to file an annual tax return. Applicable forms, depending on the type of income and deduction to be declared, are listed in Table XI. Penalties for late or improper filing are the same as for business enterprises, as stated above. XI—Tax Forms Form number Applicability 13 – Comprehensive form Taxpayer with several types of income. 13-A – Salaries only For taxpayers who receive only a salary or wages. Under current tax provisions, except in specific cases, annual tax returns must be filed using the electronic system established by the Mexican Tax Administration (SAT). For that purpose, in most cases the taxpayer must have an electronic tax compliance password called Advanced Electronic Signature (Firma Electrónica Avanzada or FIEL).

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