If you carry out any paid activity such as a job, or if you have started your business, it is important that you comply with a series of requirements and procedures so that everything runs smoothly. If it is the case that you have your company and you still do not know what procedures you require, we share 5 procedures that you must do before starting your business.
One of these aspects is the choice of the tax regime in which your company will operate or that will govern your economic activity, since there are several and with different characteristics. But before launching into the types of tax regimes, let’s remember what a tax regime is.
The tax regime is understood as the regulation applied by a territory in relation to the payment of taxes that must be faced by that individual or legal entity that obtains economic returns in it. The characteristics of a tax regime vary according to the form and type of income obtained, as defined in Economipedia.
Once we have this concept clear, it is necessary to know that there are two figures in fiscal matters, in accordance with what is established by the Tax Administration System, SAT:
Physical person. It is an individual who carries out any economic activity and, therefore, acquires rights and obligations. He can be a seller, merchant, employee, professional, etc.
Moral person. It is a group of natural persons, who come together to achieve a collective goal. The SAT defines them as entities created by law, they do not have a material or corporeal reality (they cannot be touched as such as in the case of a natural person). Even so, the law grants them legal capacity to have rights and obligations.
Now that we know the concept of the tax regime and we are clear about the tax figures, it is time to know what the types of tax regimes are and, according to their characteristics, which one would best suit your company.
According to the SAT, the schemes for Natural Persons are classified according to their activities and income and are:
Simplified Trust Regime or RESICO
- This figure is replacing the previous Tax Incorporation Regime or RIF since the end of 2021.
- It is considered a quite attractive system due to the reduction in ISR rates.
- Natural persons who carry out only business or professional activities or grant the use or temporary enjoyment of goods can register under this regime.
- The requirement to enroll in this scheme is that the totality of their own income from the activity or activities, obtained in the immediately preceding fiscal year, does not exceed the amount of 3 million and 500 thousand pesos.
- Within the RESICO, general and personal deductions, benefits and tax incentives cannot be made.
Tax Regime for Business Activity
- Under this regime, those who carry out commercial, industrial, motor transport, agricultural, livestock, fishing or forestry activities are taxed. For example: mechanical workshops, printers, restaurants, cafeterias, economic kitchens, canteens, bars, grocery stores, miscellaneous; mini-supermarkets, schools; kindergartens, nurseries, hardware stores, repair shops, among others.
- To be taxed under this regime, no income limit is established.
- To verify income in this regime, it is necessary to issue electronic invoices for the provision of your services. If you have workers, you must submit a payroll receipt for the payments and withholdings you make.
- When requesting an invoice for the purchases you make, you can include them as expenses in your monthly statements.
Regime of Business Activities with income through Technological Platforms
- With this scheme it will not be necessary for you to make monthly declarations, because as the technological platforms will withhold the Income Tax or ISR and the Value Added Tax or VAT, these withholdings will be taken as final payment.
- The condition to belong to this regime is that the income in the year does not exceed 300 thousand pesos, including wages and interest.
Leasing Tax Regime
- Under this regime, natural persons who are owners of real estate such as a house, building, apartment, commercial premises, land or warehouse operate and who authorize other persons to use it for an established time and purpose, in exchange for an amount periodic money (rent). If you dedicate yourself to this activity and want to know more about the subject, we share with you what it is and how to make a lease.
- The leases of houses and farms used for agricultural or livestock purposes will not have to pay VAT.
- If you rent to a moral person, they are obliged to withhold 10% of income for ISR. You can subtract that amount in your statements.
Regime of Business and Professional Activities
- Individuals who obtain income from commercial activities (restaurants, cafeterias, schools, pharmacies, etc.), industrial activities (mining, textiles and footwear, pharmaceuticals, construction), disposal of goods, motor transport, regardless of the amount of income received.
- Natural persons who provide professional services such as doctors, lawyers, accountants, dentists, etc. also operate under this regime.
Salaried Tax Regime
- Individuals who receive salaries and other benefits derived from subordinate personal work at the disposal of an employer, including profit sharing and severance pay, fall under this regime.
- The terms wage and salary are synonymous.
- Other income with treatment similar to that of salaries: civil servants and workers of the Federation, Federal Entities and Municipalities; members of the armed forces; yields and advances to members of cooperative production societies; advances to members of civil societies and associations; fees to persons providing services to a borrower at its premises; commission agents or merchants who work for companies, individuals or legal entities.
When are tax returns made in each tax regime?
There are two main types of declarations:
Monthly statement: It allows you to calculate the ISR and the VAT that you will have to pay for your operations. It is done every day 17 of the following month that you declare. Applies to the regime of Business Activity, Leasing and Professional Services. The Leasing regime can also make quarterly declarations instead of monthly declarations.
Annual statement: In this statement you must report the total amount of your income, expenses and withholdings per year, as well as the provisional payments you made monthly. It must be submitted no later than the following April 30 of each fiscal year. Applies to the regime of Business Activity, Leasing, Professional Services and Salaried. For the latter, apply only if you obtained income:
- You have two or more employers simultaneously, or you stopped providing your services before December 31.
- From employers not obliged to make withholdings, as is the case with international organizations.
- Income greater than 400,000 pesos.
What can be deducted according to the tax regime?
Tax deductions are the right that an individual has to reduce certain expenses and income, so they can be considered a synonym of tax benefit, according to the concept of billing.com
There are two main types of deductions according to the SAT:
Monthly expense deductions
These are the deductions for expenses and investments that are strictly essential for your activity. These include:
- Payment of wages and salaries.
- Quotas that you have paid as employer to the IMSS.
- Leasing of the premises you use to provide your services.
- Electricity and telephone of the premises for your activities.
- Stationery and stationery.
- Investments in fixed assets, such as computer equipment, office equipment, construction or transportation equipment.
- The merchandise, raw materials, finished or semi-finished products, that you use to produce your goods or services, or to sell them.
The tax regimes that are entitled to monthly deductions are Business Activity, Leasing and Professional Services.
Annual Expense Deductions
- Medical, dental, nursing and hospital expenses, including the rental or purchase of devices for rehabilitation, prosthetics, analysis and clinical studies.
- Graduated optical lenses for up to 2,500 pesos.
- Funeral expenses.
- Payments for health insurance premiums.
- The real interest, effectively paid in the year, for mortgage loans for your home.
- Donations.
- Compulsory school transport.
- Voluntary contributions to the retirement fund.
- Local taxes for salaries.
- Tuition (preschool to high school).
The tax regimes that are entitled to annual deductions are Business Activity, Leasing, Salaried and Professional Services.
The only tax regime that is not entitled to any deduction because it is charged a lower ISR than any of the other regimes is the RESICO.
Rocio Reyes Communicologist specialized in science journalism and digital marketing. Curiosity leads this being with a cat personality to find links where there seem to be none. Whenever I can, I like to contribute even a grain of what I have learned. Fan of the world of entrepreneurship and MMA.