This story originally appeared on High Level
The clock is ticking against taxpayers. The deadline to make the annual declaration before the Tax Administration Service (SAT) for physicists is April 30.
So if you want to avoid problems or pay fines to the Tax Administration Service (SAT), we leave you this little six-step guide to present the annual declaration for the 2019 fiscal year.
1. Who has to file the 2019 annual return?
In the case of natural persons, the declaration must be presented by those taxpayers who obtained income from professional services (fees), who carry out business activities, except those who pay the Tax Incorporation Regime (RIF), those who rent real estate, transfer or acquire assets, or those who receive wages and interest.
Employees who have had incomes greater than 400,000 pesos are also required to declare , unless those incomes come exclusively from a single employer, which has issued payroll vouchers for the entire income.
However, if they were entitled to deductions for which they may have a refund of the ISR and they do not present their declaration, they will not be able to receive the balance in favor.
“Those who have not registered income and did not submit the suspension of activities also have the obligation to file the annual declaration,” said Julio César Mora, member of the Fiscal Commission – South of the College of Public Accountants of Mexico (CCPM)
He added that, in addition, taxpayers who have an account or investment abroad must also declare those income, as well as the gains obtained from the exchange rate fluctuation, even though their investment portfolio has no changes.
The SAT recently announced that taxpayers who have received income only from wages plus nominal interest of 20,000 pesos, are not required to file the annual return, or can file it at any time of the year.
2. Where is the 2019 annual return filed?
If you received income from wages and salaries or similar, you can file the return by phone , although this option is limited to those who obtained income from a single employer and who have a maximum of 25 bills for personal deductions.
If you are in the previous case, you will need an email registered with the SAT, a CLABE account in your name registered in previous declarations and pre-loaded in the application, as well as obtaining a balance in favor of less than or equal to 10,000 pesos.
3. What can I deduct before the SAT?
In addition to the fact that you can deduct all the expenses classified as necessary to carry out your professional or business activity, you also have the right to personal deductions such as:
- Medical , dental, psychologist, nutritionists and hospital expenses.
- The amount of the fiscal stimulus for tuition payments , which has an annual deduction limit that goes from 12,900 to 24,500 pesos.
- Funeral expenses not greater than a Unit of Measure and Update (UMA) raised per year, that is, 29,402.88 pesos
- Complementary retirement contributions .
- Medical expense insurance premiums.
- Real interest actually paid on mortgage loans .
- School transportation whenever it is compulsory or included in the tuition for all students and is indicated separately on the corresponding receipt.
To make them valid you must have a CFDI (electronic invoice) and have paid by electronic means in the event that the amount is greater than 2,000 pesos in the case of medical expenses.
4. Do I have to report all my income?
Yes. If you thought not to inform the SAT that in fiscal year 2019 you received exempt income (for which you do not pay ISR), you can pay it dearly, since to maintain this exception you must inform them.
“ A common mistake is not to declare them . The fact of incorporating them does not mean that they are going to pay taxes, only that in an informative way you are going to add that data, the amount and the concept, “said Mora.
In the event that the treasury finds a discrepancy and will have arguments to determine a tax credit.
5. How to pay the charge tax or receive a return?
If at the end of your 2019 annual declaration it turns out that you have a tax to pay, automatically a capture line will appear with which you can pay in banks , authorized commercial establishments or through the electronic banking service
“In the case of individuals, they can pay in six installments without extra charges without guaranteeing the tax interest,” said Mora.
The SAT application will present you with a pre-filled declaration with a pre-authorized return proposal, so you should review it and, if it is correct, send it.
You must carefully review the version presented by the SAT and make the necessary changes, since you are solely responsible for the data you send.
6. What are the fines if I don't show up?
- From 1,400 to 17,370 pesos for each of the undeclared obligations .
- From 4,260 to 14,230 pesos if they have errors or incorrect data .
- From 1,400 to 34,730 pesos for filing a statement, request, notice or record, outside the deadline .
- From 14,230 to 28,490 pesos for not filing the returns online, being obliged to do so, filing them after the deadline or not complying with the requirements of the tax authorities to file them or meet them outside the stated deadlines.
On the other hand, to avoid saturation of the SAT system , the CCPM specialist recommends uploading the statement in the first days of next month, since you can find bottlenecks in the last days of April.