The Mexican government wants you to pay your taxes, and in an effort to prompt citizens to start this process, the Service for Tax Administration (SAT) published a press release regarding the fourth publication of effective rates of import taxes (ISR) related to 47 different economic activities, eight sectors and large taxpaying corporations aimed to facilitate and encourage voluntary compliance by taxpayers.
SAT databases register information by receiving inputs from several sources: annual returns, tax returns, information on taxpayers’ tax situation, informative returns, online digital tax commitments (CFDIs) and pediments. The SAT is trying to create a strategy in which taxpayers themselves solve their irregularities in order to fully unveil a new and easier method of complying with tax payments. The service already declared that they have reached out to contact all the people whose effective rate is below the published by SAT through the tax mailbox. SAT wants these contributors to fix their irregularities by analyzing their mistakes in order to fully comply with yearly tax payments correctly.
This new publication considers several important industries in the Mexican economy: agriculture, livestock, forestry, fishing, hunting, wholesale trade, retail trade, construction, manufacturing industries, information in mass media, financial and insurance services, real estate services, rental of movable property and intangible assets where food and manufacturing industries are mainly found.
The SAT is seeking for voluntary compliance heavily, trying to imply a culture in which the importance of taxpayers’ obligations is resolved by the interested individual. One of the main focuses of this press release is to remind those taxpayers who have irregularities to resolve them as soon as possible as well as the SAT is seeking to regulate annual payments for 2021. Finally, as stated by the SAT on their website, “The Tax Administration Service (SAT) is responsible for applying tax and customs legislation, in order to facilitate and encourage voluntary compliance by individuals and legal entities.”
The SAT press release reads: “To facilitate and encourage voluntary compliance by taxpayers as a result of the analysis processes carried out within the SAT, in terms of article 33, first paragraph, fraction I (subsection i) of the current Fiscal Code of the Federation the references parameters for effective tax rated have been made known for the measurement of tax risks corresponding to 203 economic activities.” The importance of these rates is necessary for several industries in Mexico as they have been published alongside the 2016, 2017, 2018 and 2019 rates with the information recovered from the institutional databases.