Have you already filed your annual tax return? No? Don’t worry. We have two good news for you: the first is that you have until May 31 to be able to do it and the second is that there are some expenses that you can make deductible to reduce the ISR payment.
But before starting, it is necessary to clarify that not all expenses are deductible, so here we present the deductions that you can make, and that are divided into two: personal and authorized by the Tax Administration Service (SAT). Your deductions will depend on the tax regime in which you are registered.
Personal
Personal deductions such as medical expenses, tuition, insurance, mortgages, funeral expenses, real interest accrued or donations can be made by all natural persons who are registered for fees, salaried employees, tenants, with professional or business activity, also some who are in the chapters of other income or interests, explained César Catalán Sánchez, member of the international tax technical commission of the College of Public Accountants of Mexico.
Remember that for personal deductions there is a legal limit, except medical expenses for disability and disability, donations, voluntary contributions and supplementary retirement contributions, as well as tax incentives, according to information from the SAT.
This limit is equivalent to five UMA (Unit of Measurement and Update) raised per year (about 163,000 pesos), or 15% of the taxpayer’s income; the lower amount of these two is the one that applies to each person, explained Nora Flores, a member of the Mexican Institute of Public Accountants (IMCP).
Do not forget that for your expenses to be deductible you must have the invoice of each one, with the correct data, such as the RFC of the issuer and yours. It is also recommended that whenever you can pay with electronic means such as a personal check, transfer of funds, credit, debit or service card instead of cash, especially tuition and expenses for medical services.
Only funeral services are authorized if they were paid in cash, as long as you present an invoice, details of the SAT information.
Donations can also be deducted; real interest, mortgage payments; contributions to the SAT; insurance premiums; mandatory school transportation expenses; deposits for savings accounts and payment for educational services.
Payment for educational services is limited and is tiered. In annual terms, these limits are for preschool 14,200 pesos; primary 12,900 pesos; secondary 19,900 pesos; technical professional 17,100 pesos and high school diploma or its equivalent 24,500 pesos.
Authorized
The authorized deductions do not apply to those who are on the payroll (salaried), but to those who are in other chapters such as freelancers (individuals with professional services); tax incorporation regime (RIF); lease; with business activity, sale and acquisition of assets; interest, and other income.
These are expenses considered as investments such as the purchase of supplies or goods to carry out a job, for example, a graphic designer who bought specialized hardware or an actress who bought makeup and costumes.
“These are other types of deductions that employees have no possibility of making, while the rest can make personal and authorized deductions. Employees do not have that possibility, except personal ones, ”said Catalán Sánchez.
You can consult the expenses that can be authorized in the Income Tax Law, specifically in article 25 and among which the amounts for returns, discounts or bonuses corresponding to the year stand out. The cost of what is sold. Investments.
There are also bad loans and casualty losses; the fees charged to the employers paid to the IMSS; interest accrued in charge of the year, without any adjustment.
The annual adjustment for inflation; advances and returns paid by cooperative production companies, in addition to contributions made for the creation or increase of reserves for pension funds or retirement of personnel in charge.
Now, yeah, just make sure you have all the documentation on hand and good luck with your annual return.
