Business

Tax benefits and facilities for individuals

Tax In this sense, and despite the fact that the federal government has established certain actions to address the health emergency generated by the COVID-19 virus, to date, it has not granted additional fiscal incentives for taxpayers, as a consequence of the aforementioned emergency.

General disposition 

Taxpayers relieved of filing an annual income tax return

Through the RMF for 2020, it is established that individuals will not be required to file the annual income tax return corresponding to the 2019 fiscal year, provided that in the said year they fall into the following cases: https://www.taxfortress.com/

  • Have obtained income exclusively from salaries from a single employer, provided that there is no ISR payable in the annual declaration.
  • In your case, they have obtained nominal interest income that has not exceeded $20,000.00 in the year, which comes from institutions of the financial system.
  • The employer has issued the Internet Digital Tax Receipt (CFDI) for payroll with respect to all salary income.

Business and professional activities

Allowable deductions greater than income

Option to modify the deduction of 35% of income

The RLISR establishes that taxpayers who choose to make the optional deduction of 35% (“blind deduction”) on their rental income in provisional payments, may change said option when filing the annual return for the year, making the authorized deductions for the regime.

Income from disposal of assets

Income from the acquisition of goods

exempt income

  • Between spouses or those who receive the descendants of their ascendants in a straight line.
  • Other donations, provided that the total value of those received in a calendar year does not exceed 3 UMAs raised per year. 

Interest income

High UMAs per year.

interest losses 

Option for final payment of tax on interest income

The LISR establishes that individuals who only obtain interest income may choose to consider the withholding made as a final payment, provided that said income corresponds to the fiscal year in question and does not exceed $100,000.00.

prize income

exempt income

The LISR establishes that prizes obtained as a result of a scientific, artistic or literary contest, open to the general public or to a certain union or group of professionals, as well as prizes awarded by the Federation to promote civic values, are exempt.

personal deductions 

The LISR establishes that natural persons residing in the country who obtain income, to calculate their annual tax, may make, in addition to the deductions authorized in each corresponding Chapter, the following personal deductions:

  • Clinical studies or prosthetics.
  • Hospital expenses.
  • Purchase or rental of equipment for restoration or rehabilitation.
  • Fees to nurses.
  • Graduated optical lenses (Up to $2,500.00 in the fiscal year).
  • Nononerous or remunerative donations.
  • The real interest on mortgage loans provided that the amount of the loan does not exceed 750,000 UDIs ($4,800,000.00 approximately).
  • Complementary retirement contributions, to personal retirement plans or to the voluntary contributions subaccount.
  • Premiums for medical expenses insurance provided that the beneficiary is the taxpayer himself, his spouse or the person with whom he lives in concubinage, or his ascendants or descendants, in a straight line.
  • Compulsory school transportation expenses.
  • Local tax on income from salaries and in general for the provision of a subordinate personal service

Limit personal deductions 

The LISR establishes that the total amount of personal deductions may not exceed the lesser of 5 UMAS raised per year, or 15% of the taxpayer’s total income, including exempt income. This will not apply in the case of donations and complementary retirement contributions.

Federal Taxpayer Registry Code (RFC) for personal deductions made with residents abroad (Rule 3.17.9. RMF)

Tax incentive for tuition deductibility

Import or acquisition of diesel, biodiesel, and their mixtures 

The Federal Income Law for Fiscal Year 2019 (LIF 2019) grants certain tax incentives applicable to the import or acquisition of diesel, biodiesel, and their mixtures, for the consumption of:

  • general machinery
  • marine vehicles

general machinery

The incentives basically consist of allowing the crediting of an amount equivalent to the special tax on production and services (IEPS) that people who dispose of diesel or biodiesel and their mixtures in the national territory have caused by the disposition of said fuel, in terms of article 2 of the Law of the aforementioned tax, as well as the accreditation of the tax referred to in the aforementioned numeral, which they have paid on their importation.

Use of diesel or biodiesel in agricultural or forestry activities 

Said accreditation may be made against the ISR caused in the fiscal year that the taxpayer has, corresponding to the same fiscal year in which the diesel or biodiesel and its mixtures are imported or acquired; if you do not do so, you will lose the right to do so later.

Use the National Network of Toll Highways

Grant Thornton Mexico through its Tax division is at your service for any questions regarding the application of any of the benefits stated in this document or additional information that you require.

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