In recent days, the head of the Tax Administration Service (SAT) announced that the tax authorities are currently working on a new tax reform, estimating that the resulting modifications will be incorporated in the Federal Revenue Law 2022.
In the words of the Tax Authorities, the reform will be based on making tax collection more efficient by simplifying the payment of taxes and adjusting the legal framework to avoid various controversies, as well as establishing sufficient conditions to provide greater legal certainty to taxpayers.
So far, it has been established that such reform will address the following aspects:
- It is estimated that an additional 200 billion pesos will be collected by 2022, which is equivalent to 1 point of GDP.
- No tax increase is expected.
- Administrative facilitation will be sought to support the payment of taxes, simplifying the processes for compliance with tax obligations.
- A 20% increase in the annual tax return for individuals is estimated.
- It will be a reform with short-term objectives, so that the results will be reflected or visible in the fiscal year 2022.
- The possible granting of administrative and technological facilities is expected.
- It is estimated that the main source of funds to be collected will come from major taxpayers, a sector for which the effective income tax (ISR) rate for 40 economic activities was recently disclosed, with respect to the profits, deductible items or effective tax rates of other entities or legal institutions that obtain income or consideration based on the economic sector or industry within this classification of taxpayers.
- The desired goal for 2022 is to reach a revenue collection figure of 2% of the GDP figure.
It is worth mentioning that the head of SAT, Ms. Raquel Buenrostro, has stated her position on the matter, indicating that the tax collection agency will seek “tax justice”, establishing the need “that taxpayers pay what they have to pay without affecting any sector or benefiting any other”, and has also specified that such position is in harmony with the economic planning protocol vision of the President of Mexico, Mr. Andrés Manuel Lopez Obrador.
Finally, it is important to point out that the aforementioned reform initiative will be submitted to the Legislative Branch to begin the process of discussion, approval, sanction and publication in September 2021, within the framework of the legislative process period and the content of the Economic Package scheduled for fiscal year 2022.
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