SAT to “adjust” half a dozen taxes in 2022 starting January 1, 2022

(CDMX – Times Media Mexico) – As of January 1, 2022, the Tax Administration Service (SAT) will implement fiscal changes and “adjustments” to a half dozen taxes, implying increases in the price of high consumption products and obligations for young and small businessmen.

Among the most critical tax changes is the 7.37% increase in the Special Tax on Production and Services (IEPS), which will increase the price of soft drinks, gasoline, and cigarettes.

In addition, there will be mandatory monthly reports that banks must send to SAT to identify cash deposits above 15,000 pesos, the purpose of which is to combat money laundering and identify persons who evade the tax authorities through such movements.

Likewise, the will be an application of a new “Simplified Trust Regime” for Individuals and Legal Entities. In addition, it offers a “mitigation” to small businesses and companies, such as reducing the effective ISR rate to a range of 1% to 2.5%, for those who have incomes of less than 3.5 million pesos per year.

Lopez Obrador promised that there would be no new taxes for Mexico. However, djustments have been made to limit deductions, toughen taxation and increase tax collection; taking advantage of the fact that up to 85% of the people do not understand the tax changes that are going into effect.

7.37% increase to the IEPS
Although only adjusted for inflation, the increase in the rate of this tax makes the following products more expensive:

New prices
A pack of cigarettes: goes from 70 to 75.16 pesos; 5.16 pesos more.
Liter of cola soft drink goes from 22 to 23.62 pesos; 1.62 pesos extra;
A 2-liter bottle of any flavored soft drink goes from 19 to 20.40 pesos; 1.40 pesos more.
Premium gasoline goes from 22.45 to 24.10 pesos per liter during 2022; 1.65 pesos extra.
A liter of regular gasoline goes from 20.37 to 21.87 pesos, 1.50 pesos more.

The “Simplified trust regime.”
SAT offers an effective rate of 1% to 2.5% for small businesses and entrepreneurs, with revenues less than 3.5 million pesos per year. Large companies with less than 35 million pesos per year will be able to cover ISR according to the revenues collected and not based on the invoice value, as is the case in 2021.

Cash deposits
Banks will have to report cash deposits above 15 thousand pesos per month; in 2021, the data collected: name, RFC, address, email, and telephone, were sent to SAT every year.

If the tax authorities detect that you use such operations to evade taxes, they will impose fines equivalent to 55% of the amount omitted, plus any applicable surcharges and updates.

Forced registration as people turn 18 years old.
All Mexicans over the age of 18 must register with the SAT. In addition, everyone over 18 years of age must apply for their RFC before the SAT, even if they do not work. Congress approved the proposal made by the Treasury Department as part of the Tax Miscellaneous.

The idea is to “promote tax culture among young people” and at the same time facilitate “their incorporation to the economic activities”(SIC) reads the document presented by the authorities.

Seizures of bank accounts and properties in case of tax debt
The SAT will apply electronic audits and locate debtors, evaders, and billers. The Tax Mailbox will notify the debtor taxpayer and give them a term of 30 business days to present evidence and allegations.

If the taxpayer does not solve the faults within such a term, the tax authorities will seize the taxpayer’s bank accounts and properties.

General Provisions:
Cap on deductions of donations and voluntary contributions to retirement savings, which together with deductions for funeral expenses, mortgage interests, medical expenses, and tuition, will be capped at 163,467 pesos; instead of 15% of the taxpayer’s income.

The primary sector -agriculture and livestock- will be exempt from paying income tax when their annual income does not exceed 300 thousand pesos.
VAT zero rate on feminine hygiene products.
VAT zero rate on animal food.

The Yucatan Times