Taxpayer Numbers Saw Slowdown in 2019

The Tax Administration Service (SAT) has reported that 2019 registered the lowest number of new taxpayers since 2012. The first year of the President Andrés Manuel López Obrador administration saw the addition of just over 5.6 million new taxpayers, moving the total number to 77.4 million, and representing an annual increase of 7.9 percent compared to 2018 figures.

This growth contrasts with double digit increases recorded in most recent years since 2013, when the Tax Incorporation Regime initiative was introduced. Only the 4.0 percent growth recorded in 2012 was worse than 2019’s figures.

SAT also reported that at the end of last year there were 7.6 million taxpayers whose registration was suspended for being inactive for two consecutive years, while the taxpayer registration of a further 1.1 million people was terminated.

According to experts, the informal economy and ghost companies are the government’s main challenge to increasing taxpayer numbers and attracting more people to join the formal economy.

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A steady Growth in Taxpayers

Taxpayer numbers growth during last decade (millions)

Year       Taxpayers

2010       33.47

2011       36.98

2012       38.47

2013       41.66

2014       46.30

2015       51.58

2016       56.79

2017       64.67

2018       71.80

2019       77.44

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Proposed changes in ISR

A gradual decrease of the Income Tax (ISR) will give certainty to investors and make Mexico more attractive for investor, the National Action Party (PAN) reported.

At a press conference, PAN’s National Executive Committee Leader Marko Cortés said that after 13 months of the López Obrador administration, Mexico’s economy has worsened. To tackle this “recession” and generate greater investment attraction, Cortés proposed changes to the ISR.

Cortés also called on the federal government to reduce the Special Tax on Production and Services on gasoline to lower fuel prices. “While our main business partner (US) has cheap gasoline, here in Mexico we are paying 6 pesos more per liter. Mexico must be more competitive,” Cortés said.