Deductibility and 18-year-olds, the most controversial points of the Tax Miscellany 4:15

(CNN Spanish) --

In April 2024, tax season arrives in Mexico, the amount of which will be defined, naturally, by the amount of income that, in this case, a natural person has had in 2023.

Although not all Mexicans qualify to pay taxes, the law establishes, among others, a series of rules to calculate your payments for your income from different areas.

At the end of 2023, the Tax Administration Service (SAT) published the Fiscal Miscellany for 2024, which means that the new tax values ​​and rates apply to this year's income and payments will be made by 2024.

"In the declaration that will be presented in 2024 there is already a modification due to inflation. The law states that when inflation exceeds 10% of the amount accumulated since the last update of the rate, it will be updated again," Virginia told CNN. Ríos Hernández, member of the Technical Commission for Tax Investigation of the College of Public Accountants of Mexico.

  • IRS tax table 2024: how to calculate how much I have to pay based on income and marital status?

The last time the Fiscal Miscellany was modified was in 2021 and, from the end of that year until December 2022 (that year it was 7.82%), the accumulated inflation of the two years exceeded 10%, which is why it was updated the rate.

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"With inflation it was updated and then people in 2024, if in 2023 they earn the same as in 2022, they will pay less taxes," said Ríos Hernández.

This is a guide for paying taxes for the year 2023, which must be paid in Mexico between April 1 and 30, 2024.

Who must file their annual tax return?

If you are a natural person, that is, you obtain income through any of these activities, you must submit your declaration to the SAT:

Wages and salaries

  • From a single pattern and you stopped receiving it before December 31.

  • If you also obtained income other than salaries.

  • If you worked for two or more employers simultaneously.

  • If the salaries come from abroad or from people not obliged to withhold.

  • If you also obtained income from compensation or retirement.

  • If your total annual salary income exceeds 400,000 Mexican pesos

To see why other items must be paid taxes in Mexico, follow this link.

"Not everyone submits an annual return or is required to do so," said Ríos Hernández. "If they are employees and their cumulative income did not exceed 400,000 Mexican pesos [...], they are not required to submit the annual declaration if they only had that income."

But if a person obtained extra income, in addition to their salary, such as fees from additional work or from rentals or from the sale of properties, they must file the declaration, the expert added.

And even if a person's income is low, they must still file a tax return, even if it is zero, although this does not necessarily mean paying an economic amount.

How do I calculate how much I have to pay in taxes?

The SAT has established amounts with which the tax base for the year to be paid is calculated, which is established according to your income. The document published in December 2023 contains the rates applicable to provisional payments, withholdings and tax calculation.

The regulations allow personal deductions to be made in the annual declaration. These are "expenses that as a taxpayer you have the right to reduce from your cumulative income" in the annual income tax return, according to the SAT.

Some of these deductions are health deductions such as fees for medical services, hospital expenses and medicines, medical analyzes and examinations, rehabilitation devices, prostheses; payment of education services, according to the SAT limits; as well as funeral expenses, interest on mortgage loans, etc.

The tax can vary depending on income and the type of taxpayer—whether individuals or legal entities—between 1.0% and up to 35% each month depending on the income received, according to the SAT.

Thus, those who in 2023 had income between 0.01 and 8,952.49 Mexican pesos must pay 0 pesos in taxes. The amounts of the fixed amount of taxes payable increase as the amount of money increases, according to the Rate table for calculating the tax corresponding to the year 2023.

The amounts in this table correspond to the annual income limit for calculating tax payments.

  • Income between 0.01 and 8,952.49 pesos - pay 0 pesos

  • Income between 8,952.50 and 75,984.55 pesos - pay 171.88 pesos

  • Income between 75,984.56 and 133,536.07 pesos - pay 4,461.94 pesos

  • Income between 133,536.08 and 155,229.80 pesos - pay 10,723.55 pesos

  • Income between 155,229.81 and 185,852.57 pesos - pay 14,194.54 pesos

  • Income between 185,852.58 and 374,837.88 pesos - pay 19,682.13 pesos

  • Income between 374,837.89 and 590,795.99 pesos - pay 60,049.40 pesos

  • Income between 590,796 and 1,127,926.84 pesos - pay 110,842.74 pesos

  • Income between 1,127,926.85 and 1,503,902.46 pesos - pay 271,981.99 pesos

  • Income between 1,503,902.47 and 4,511,707.37 pesos - pay 392,294.17 pesos

  • Income of 4,511,707.38 pesos or more - pay 1,414,947.85 pesos

Are there deductions based on a person's marital status?

Not really. In Mexico, unlike the US, for example, a tax deduction by marital status is not applied.

But a division of shares does apply, for example, if income was received from assets of a marital partnership.

"For example, if a couple that is under a conjugal partnership has a property and rents it, then the income is divided between the two," said Ríos Hernández. "So, everyone produces their own tax return and everyone pays their tax. It's cheaper."

Tax return