SAT Collects 561% More Taxes From Larger Mining Contributors

The Mexican Tax Authority (SAT) revealed it collected MX$65.9 billion (US$3.6 billion) from larger contributors in the mining sector, meaning a substantial increase when compared with the amount collected during the previous federal administration. 

During the period from 2012 to 2018, SAT collected just over MX$7.5 billion from these companies. So far, this represents an increase of 561% against the previous administration.

SAT reported that, through the General Administration of Major Contributors Office, it is pursuing the objectives outlined in its 2019-2023 master plan. This effort aims to encourage tax compliance and the rectification of discrepancies among taxpayers in the mining sector. “During this period, the tax authority has carried out a fiscal presence equivalent to 307 completed reviews, meaning, concluded audits,” SAT stated via a press release. Taxation initiatives are delivering good results that will guarantee a level field for all contributors throughout the entire productive chain. 

Larger mining contributors have been under the spotlight more than once this year. On March 24, 2023, MBN reported that SAT and the Universidad Autónoma de Chapingo’s Department of Statistics, Mathematics, and Computing issued a study that stated that the mining sector might have incurred tax evasion of over MX$22.5 billion between 2015 and 2021. The study suggested that tax evasion might have occurred due to undervaluation, where taxes were declared based on a value lower than the actual worth of mining products. It was determined that this undervaluation amounted to MX$75 billion, which accounts for more than 9.6% of the total value of mining exports during that period. Consequently, uncollected taxes make up 11.7% of the total income tax collected from the mining sector.

The rise in tax collection occurred even in the face of a decreased collection of Income Tax (ISR). During 1H23, ISR collected from the mining industry experienced a substantial 34.6% annual decline in real terms, totaling MX$30.486 billion. This decline represents the most significant contraction for a similar period since 2003, according to data from the Ministry of Finance and Public Credit (SHCP). CAMIMEX linked the reduced collection to a 2.4% decrease in mining exports, as reported by El Economista.

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