In recent days, the Tax Administration Service (SAT) of México, released the effective income tax (ISR) rates for large taxpayers in 40 economic activities, which comprise five economic sectors: mining, manufacturing industries, wholesale trade, retail trade and financial and insurance services, including the automotive
With this, the auditing body established the reference parameters with respect to effective profit rates, deductible concepts or effective tax rates presented by other entities or legal entities that obtain income or consideration based on the economic sector or industry to which they belong.
The SAT has recommended that taxpayers make a comparison with their own effective tax rate for each fiscal year (2016, 2017, 2018 and 2019) in order to measure tax risks and, if necessary, correct their tax situation through the annual supplementary return, thus having the opportunity to minimize the initiation of more in-depth reviews aimed at enforcing the payment of the tax.
And precisely, one of the areas of auditing on which the aforementioned decentralized body will be focusing its efforts is the list of Large Taxpayers, of which, according to the information provided by the SAT itself, an evasion and avoidance of Income Tax (ISR) of 700 billion pesos has been detected, which could represent 3% of the GDP in 2020.
In this scenario, it is expected that SAT will reinforce its review and auditing actions to large taxpayers, undertaking greater actions to increase collection efficiency through the implementation of audits, based on what is established in its “Operation Master Plan 2021”; which aims to increase the collection of this sector through the improvement of the auditing process, for the current fiscal year.
Among the main taxes that will be subject to review are: Income tax (ISR), value added tax (VAT) and duties.
Based on this, we recommend as a priority measure that taxpayers in these cases initiate and maintain preventive procedures, ensuring the correct compliance with their tax obligations and seeking to reduce risks as well as the updating of legal contingencies.
Our experience in the tax business provides us with the necessary elements to offer the best results in legal compliance.
At Stratego, we have specialized in various fiscal areas, covering everything from VAT and income tax refunds to taxes, fiscal and customs audits, foreign trade taxes, capital repatriation, transfer pricing, and more. If you or your company are facing challenges in any of these matters, do not hesitate to reach out to us, and we will gladly provide the support you need.
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