August 13, 2013:
Here’s another Public Service Announcement for people who pay their own Mexican income taxes (not withheld by an employer) or submit IVA taxes to SAT. Lic. Spencer McMullen offers the following updates:
People (inc. small business owners, independent professionals, and the self-employed) under the REPECO scheme used to file and pay their taxes bimonthly with their State Tax Collectors offices. Now, with the Jan. 2014 tax reforms, people need to file bimonthly tax returns with SAT using the SAT web site.
Update: The SAT web site was not working properly to file returns until a few weeks ago. Before the website was fixed, many people logged on, became frustrated that the site did not work – leaving them unable to file the required returns – and gave up. This was true even for people who owed NO taxes the first year due to their status, or people who have had zero revenue.
Other people have never logged in and do not even know if their password works.
Please be advised that the deadline to file a return for the January – February 2014 and March – April 2014 periods was in July, but you can still log in and do it.
The deadline to file for the May – June 2014 period is the month of August. Small business owners need to file to declare for IVA (sales tax) and ISR (Income tax). When filing it shows what you would have to pay if you had no tax incentive so you can plan for future years, where the 100% first year then goes to 90%, 80%, etc.
You need to file even if you had no income, because if you do not file, SAT can kick you out of the preferential Regimen de Incorporacion Fiscal and instead place you in a tax scheme that pays lots of taxes (no tax incentives or bonuses) as well as you will have to hire an accountant to do the filings.
Historically, SAT has fined people for not filing taxes, even when no taxes are owed. I (Lic. Spencer McMullen) know someone who was personally fined $6,000 pesos for not filing for a 2 month period and she owed 0, yes, zero, nothing, nada, zilch and still was fined for not presenting a return saying she had no activity. Also immigration (INM) does ask to see the SAT filing receipts, when you renew your immigration document.
If for some reason your password does not work (or you never got one) you can get one from your local SAT office: The local SAT office have waits of a few weeks for an appointment or you can go without an appointment, but in order to not be turned away or wait all day, you should arrive at 6am to wait in line or even earlier.
For filing you should have your income broken down by month as well as bimonthly period. If you gave nobody a factura, that’s fine. If you gave someone a factura, then you will have to separate the net and the IVA so the separate amounts can be listed.
The same approach applies to your expenses for which you have an official factura. With facturas, you have a total amount and net amount and total IVA tax you paid, i.e. $800 pesos plus IVA of 128 for a total including IVA of $928 pesos. You will also need the type of expense for the payment and RFC of the person who gave you the factura.
Lic. Spencer McMullen’s original report can be seen at: http://www.chapala.com/wwwboard/webboard.html “Pay your taxes now to SAT or lose big”
Again, we thank Lawyer Spencer McMullen for his ongoing fine work at supporting expats in Mexico. Lic. McMullen is a Mexican licensed attorney (Cédula #7928026) and official court translator (Perito Traductor). Contact him at http://www.chapalalaw.com/inicio-2-2/ or Mx 376-765-7553
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Disclaimer: This information is not meant as legal advice. It is for educational and informational purposes only. See a qualified professional for advice on important issues.
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