In Mexico, the Income Tax (ISR) deduction for the payment of tuition is limited to certain amounts by educational level and that have not been updated for inflation for more than 11 years.
This fiscal support was granted in February 2011 through a presidential decree with Felipe Calderón, but since its issuance and entry into force the established amounts have not been updated for inflation.
“It is estimated that from 2011 to 2022 inflation has been more than 60%, the amounts to deduct tuition have never been high, and even less so now; a primary deduction of 12,900 is just one month, month and a half of tuition for that level”, commented Virginia Ríos Hernández, member of the Tax Investigation Technical Commission of the College of Public Accountants of Mexico (CCPM).
Tuition deductions are limited to an annual amount according to the educational level and are applicable per student. Therefore, they do not add to the universal limit of personal deductions.
From February 2011, when the decree was published, to August 2022, the increase in average prices in the country has been 62.68%, and this year levels not seen for two decades are reported, precise information from the National Institute of Statistics and Geography (Inegi).
“It is necessary to update the amounts with higher deductible amounts or for all payments to be deductible, because it is the State’s obligation to offer free and quality education. Not finding options in the public sector, parents pay for private education services”, explained Laura Grajeda Trejo, president of the Mexican Institute of Public Accountants (IMCP).
The amounts published in 2011 and applicable to date are as follows:
-Preschool: 14,200 pesos
-Primary: 12,900 pesos
-Secondary 19,900 pesos
-Technical professional: 17,100 pesos
-Baccalaureate or its equivalent: 24,500 pesos.
With an adjustment of 62.28% for accumulated inflation from 2011 to 2022, the limits would be:
-Preschool: 23,043 pesos
-Primary: 20,934 pesos
-Technical professional: 27,750 pesos
-Baccalaureate or its equivalent: 39,758 pesos
On the way to the delivery of the 2023 Economic Package, it is important to address the issue of updates to the limits for personal deductions, the interviewees agreed.
The specialists requested an update that allows deducting university level studies, doctorates, masters, diplomas, since many parents still make this expense in view of the fact that the educational offer at a higher level does not satisfy the needs of the population and the difficulty of studying and working. at the same time.
In addition, tuition payments made for oneself should be allowed to be deductible, since they are deductible for the payment of tuition for children, parents and spouses, explained Ríos Hernández.
The president of the IMCP explained that over time the tax authority has been more restrictive and has established more requirements to make tuition payments deductible, such as the obligation that these payments be made through the banking system and not in cash, Well, many schools did not offer digital charges when they started asking for that requirement.