Introduction
Paying taxes annually is a responsibility for small and medium-sized enterprises (SMEs) as well as certain individuals to avoid issues with tax authorities. After filing the declaration, the tax authority sends an acknowledgment of receipt. If there’s a balance due, you have 10 business days to pay it using the account number provided in the acknowledgment.
What constitutes a fiscal credit?
Jesús Mendieta, a member of the Public Accountants College of Mexico, explains that a fiscal credit consists not only of the original debt but also additional charges such as penalties, surcharges, and adjustments.
- Original debt: The initial amount owed to the tax authority.
- Inflation adjustments: Monthly inflation rates published by Mexico’s National Institute of Statistics and Geography (Inegi) are added to the debt.
- Penalties: Charges for not paying taxes on time.
- Surcharges: Additional fees added to the unpaid taxes.
These components can cause a fiscal credit to grow over time.
Penalties and consequences
Experts warn that penalties for not paying taxes vary depending on the time elapsed, the debt size, and whether the individual or company has a reasonable justification for omitting tax payments.
- Growing debt: The debt increases monthly with added interest.
- Asset seizure: Bank accounts, real estate, and other assets can be seized.
- Criminal proceedings: Legal action may be taken against the individual or company.
- Digital seal cancellation: The ability to continue billing may be revoked.
To avoid these consequences, partial payments can be made within 36 months, or the payment can be postponed to a chosen date by the taxpayer, not exceeding 12 months. In both cases, at least 20% of the debt must be paid.
Actions to prevent fiscal debts
Throughout the year, it’s advisable to take certain actions to avoid mismanaging funds allocated for tax payments:
- Separate bank account: Maintain a dedicated bank account for tax deposits.
- Professional advice: Seek assistance from a certified public accountant for tax-related concerns or declaration questions.
- Timely declarations: File annual tax returns by the deadline, which is April 30 for individuals. Failure to comply may result in fines ranging from 1,810 to 44,790 Mexican pesos.
Key Questions and Answers
- What is a fiscal credit? A fiscal credit consists of the original debt plus additional charges like penalties, surcharges, and inflation adjustments.
- What are the penalties for not paying taxes on time? Penalties include monthly interest, late payment fees, and potential criminal proceedings, asset seizure, or digital seal cancellation.
- How can one avoid fiscal debts? Maintain a separate bank account for tax payments, seek professional advice from a certified public accountant, and file annual tax returns by the deadline.
