As we move into 2025, corporations operating in Mexico must prepare for their annual tax declarations. Filing an annual return is a crucial obligation for all businesses, and failure to comply can result in penalties and legal complications. To help you navigate this process, here’s everything you need to know about annual declarations for the 2024 fiscal year.
Who Needs to File an Annual Declaration?
All corporations in Mexico are required to submit an annual tax return to the Tax Administration Service (SAT) within the first three months of the year. This means that the deadline for filing the 2024 tax return is March 31.
What Information is Included in the Annual Declaration?
Your corporation’s annual return must include a detailed summary of its financial activity from the previous fiscal year (January–December 2024). The following elements must be reported:
1. Income and Deductible Expenses
The return should include all income earned (and will be acumulated) and deductible expenses incurred by the corporation throughout the fiscal year. This will determine the taxes owed or any applicable deductions.
2. Taxes Due
The declaration calculates the total tax liability of the corporation, taking into account provisional payments made during the year and any adjustments required.
3. Profit or Loss Calculation
Your accountant will determine whether your corporation made a profit or suffered a loss. If a loss is declared, it can be used to offset taxable income for up to 10 years or until fully deducted. The tax rate is 30% on the profit base.
4. Employee Profit-Sharing (PTU)
According to the Mexican law, in the Article 117 of the Federal Labor law, requires corporations to distribute 10% of their taxable profit to employees as part of the mandatory worker participation program.
5. Preloaded Data from SAT
The SAT preloads certain data based on previous tax declaration and payroll records. If discrepancies arise between these figures and your accountant’s final calculations, adjustments must be made through amended monthly returns.
Additional Financial Statements Required
Apart from the tax return, corporations must submit several financial statements, including:
– Income Statement: Reports all income, including loans and capital contributions exceeding $600,000 MXN, which must be declared within 15 days of receipt.
– Balance Sheet: Must compare 2025 financial data with 2024 and provide explanations for significant variations.
– Annual Cumulative Inflation Adjustment: Corporations must determine whether they have a cumulative or deductible annual inflation adjustment, based on the balance of their debts and credits.
How to File the Annual Declaration?
1. Prepare the Necessary Financial Reports: Work with your accountant to ensure all required statements are accurate and complete.
2. Verify Preloaded Information: Check the data provided by SAT and correct any discrepancies.
3. Submit the Return Electronically: Use the SAT portal and your corporation’s E-firma (digital signature) to file the return.
4. Review and Confirm: Before final submission, double-check that all amounts match supporting documents.
Why Work with a Professional?
Navigating Mexico’s tax system can be complex, and errors in filing can lead to fines or unnecessary tax burdens. A professional accountant can:
– Ensure compliance with tax regulations.
– Identify deductions and credits to optimize your tax return.
– Correctly process employee profit-sharing obligations.
– Assist with amendments if discrepancies arise in preloaded SAT data.
Navigating Mexico’s tax system can be daunting, but with a professional accountant by your side, you can avoid costly mistakes and maximize your financial benefits. Our expert services will:
– Ensure full compliance with all tax regulations, giving you peace of mind.
– Identify valuable deductions and credits to optimize your tax return and save you money.
– Accurately process employee profit-sharing obligations, ensuring fairness and legal adherence.
– Assist with amendments if discrepancies arise in preloaded SAT data, preventing potential fines.
Trust us to handle your tax needs with precision and confidence, so you can focus on what matters most. Contact us today to secure your financial future!
Get Expert Assistance from Mextax
If you need help with your 2025 annual tax declaration, Mextax is here to support your business. Our expert accountants specialize in Mexican tax law and corporate tax obligations. Contact us today to ensure a smooth and compliant filing process!
Contact Mextax to schedule a consultation with our tax professionals.
