The annual tax return is a fundamental process to comply with tax obligations in Mexico, both for individuals and corporations. This procedure is not only crucial to avoid problems with the Tax Administration Service (SAT), but it can also offer opportunities to optimize your taxes and, in some cases, obtain refunds. In this blog, we guide you through the steps necessary to complete your annual return, whether you are an individual or a corporation.

For Individuals

1. Gather the Necessary Documentation

Before starting the declaration, it is essential to have all the relevant documents at hand:

• Income Statements: Gather any evidence provided to you by your employers, clients, or any other source of income.
• Deduction vouchers: Includes medical expenses, educational expenses, donations, and other deductible concepts.
• Bank Account Statement: To verify income and expenses.

2. Access the SAT Portal

• Enter the SAT portal.
• Use your RFC and password to access your account.

3. Complete the Annual Declaration Form

• Select the Type of Declaration: Choose between the declaration for employees, for income from business activity, rent, etc.
• Fill in the Required Information: Includes all income earned during the year and allowed deductions.
• Check and Calculate: Verify that all the information is correct and use the portal tools to calculate your tax payable or possible refund.

4. Send the Declaration

• Once completed, submit your return through the SAT portal.
• Keep the receipt as proof that you have fulfilled your tax obligation.

For Legal Entities

1. Prepare the Accounting Documentation

• Financial Statements: Includes balance sheets and income statements.
• Tax receipts: All receipts and invoices of income and expenses.
• Accounting Books: You must have updated accounting books.

2. Access the SAT Portal

• Enter the SAT portal.
• Use your RFC and your password to enter your account.

3. Fill out the Annual Declaration Form

• Select the Type of Declaration: Depending on your tax regime (General Regime, Simplified Regime, etc.).
• Enter the Financial Information: Include income, expenses, and any other relevant information. Remember that you should also consider tax deductions and credits.
• Calculate the Tax: Use the tools available on the portal to calculate the tax payable or the corresponding refund.

4. Review and Send

• Please review all information carefully before submitting.
• Submit the declaration through the SAT portal.
• Please retain the acknowledgment for your records.

Additional Tips

• Keep Your Documents Organized: Good organization will help you complete your return more efficiently and accurately.
• Consult with a Specialist: If you have questions or your tax situation is complex, consider consulting an accountant or tax advisor.
• Meet the Deadlines: Make sure you file your return within the deadline to avoid fines or surcharges.

Conclusion

Filing your annual tax return is a process that requires attention to detail and good preparation. By following these steps and staying organized, you can efficiently meet your tax obligations, whether you are an individual or a corporation. Remember that complying with your tax obligations is not only important to avoid legal problems, but can also offer you additional benefits, such as refunds and deductions. Don't put off until tomorrow what you can declare today!