The Fine Paths in tax Submission

So far, the declaration of a health emergency in Mexico does not prevent the annual declaration of taxes for individuals and companies, since tax collection is considered essential activity that continues in activities. That is why April 30 ends the period for individuals to  file their tax return for the 2019 fiscal year.

After that day, the Tax Administration Service (SAT) may charge surcharges for delay or omission of this informative responsibility.

If you are an independent worker, you have to check all the details when filing your return, whether you do it on your own or with the help of an accountant. If your registration is not correct, you could accept additional tax charges and pay much more than what you are required by law. In order to guide freelancers or people who worked on their own with billable income during 2019 and will present their annual tax return. With the tax refund estimate calculation you can find the best solutions now.

Who file an annual tax return in April 2020?

All independent or freelance workers who are registered with a tax tax regime and have an e-signature (previously called electronic signature) to issue invoices, have a tax obligation to file their monthly and annual returns.

How to file the tax return if you are freelance

  • You should know that the annual declaration can be presented by face-to-face appointment or online. For this second option, you must enter the SAT web portal and log in with your RFC and password.
  • Validate your registration with the SAT. As a freelance or independent, the registration you must have is for ‘Professional Services’. This selection is made only once and is modified only if you change your professional activity.
  • The tax regime is called Independent Professional Services, which according to the law can be with or without a professional title, but is also independent. The provision of services in the VAT law does not distinguish whether they are with a professional title or not, it taxes both.
  • Income from the provision of professional or non-professional independent services is taxed by the ISR, and in the event that these are provided to a legal entity, they must be subject to a 10% withholding tax.
  • If you have doubts about your regime, check the Federal Tax Code.

Other tax regimes in which a professional can be registered are:

Wages and salaries, for example: an employee hired by a company. It includes all the people who work in a subordinate way, that is to say, that the worker puts himself at the employer’s disposal physically and intellectually to carry out a certain activity, by paying a salary and submitting himself to a working day. Any worker who is in this regime must have the minimum benefits of law, such as social security, vacations, end of year bonus, participation in the profits of the company, among others, and the only tax that must be paid is the ISR for wages.


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