The tax administration service in Mexico also know as SAT, It is a body that belongs to the Public Credit and the Ministry of Finance of the State of Mexico. This body focuses on applying tax and customs legislation.
Its purpose is for individuals and legal entities to collaborate in a manner equivalent to public expenditures, and it is also in charge of supervising them so that the compliance with customs and tax provisions on a voluntary basis and provide the information required for the design and evaluation of the policy tax.
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The SAT is characterized by collecting and administering the taxes that are destined to the finances of expenses and to the various investments that are related to the service and public works. These taxes are a type of tribute that serve to improve and maintain an efficient performance in the functions and needs of society.
In this article you will find:
Objectives of the Tax Administration in Mexico
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Among the fundamental objectives of this service are the following:
- Promote risk awareness in case of non-compliance.
- Optimize the efficiency of the Tax Administration.
- Reduce smuggling and the informal economy.
- To have available the computerized processes and systems that are safe and oriented towards integral, internal processes and aimed at the taxpayer.
- Increase the efficiency of collections.
- Control the opportune, absolute and universal obligations.
- Strengthen the organizational culture that encourages the evocation of service, quality, honesty and transparency that adheres to the law and professionalism.
Composition of the Tax Administration in Mexico
This service is made up of a Governing Board constituted by its management body, a chief promoted by the President of the Republic and revalidated by the Senate and by the units administrative.
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The head of the SAT links the institution with all government entities that are state, federal, municipal and all social and private sectors that fulfill the functions of the Administration services Tax. The SAT Governing Board in general is composed of the following:
- The titular president of the Ministry of Finance and Public Credit.
- Three directors who will be selected by the Secretary of the Treasury and his senior employees.
- Three independent directors elected by the President of the Republic, where two will be proposed to through the National Meeting of Tax Officials within the terms of the Coordination Law Fiscal.
Functions of the Tax Administration in Mexico
In accordance with the law of this body, this service performs outstanding functions such as the following:
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- Organize customs and inspection services.
- Establish, liquidate and collect federal contributions, which are in accordance with the international treaties where it participates the country of Mexico, these attributions must be carried out through the tax and customs authorities belonging to the order federal.
- Participate in international treaty business carried out by the Federal Executive within the tax and customs system, in addition to achieving institutional agreements with its competence.
- Design, operate and administer the database of the tax and customs information system, in order to facilitate the Ministry of Finance and Public Credit the statistics that are needed to make the federal and fiscal collection reports that must be presented to the Executive Federal.
- Safely supervise compliance with tax and customs practices, in addition to previously checking the powers of these practices.
- Collaborate in the design of tax policies with accurate and verifiable data.
- Work as an organ of the Federal Government, for consultations related to the tax and customs system.
- Locate taxpayers with the intention of increasing and keeping the registry fully updated.
- Request and provide national and international public institutions with access to all the information needed to prevent tax evasion or controversy, regarding the approval of tax and customs laws and treaties international
- Gather all the information that is needed to specify the origin of the taxpayers' income and in turn to adequately fulfill their tax commitments.
Tax regimes for people within the Tax Administration
Natural persons are the individuals who have the possibility of assuming their rights and obligations. In Mexico there are six tax regimes for individuals, such as the following:
Professional services
These are individuals who show their services independently, since they do not acquire profits or benefits by the company or institution where they work, therefore, their tax return presents them monthly or annually.
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Fiscal integration
These people are the ones who carry out various business activities, they usually sell goods and services that do not need to have a professional title and their Tax returns can be submitted bimonthly, among them are greengrocers, miscellaneous, beauty salons and dry cleaners, among others.
Business activities
Refers to people who carry out commercial activities such as running a business of cafeteria, shop, workshop or restaurant, industrial, livestock, agricultural or transport work, among others. Generally, your tax return must be done monthly or annually.
Interests
They are the people who file their taxes every year, since they acquire their income through interest.
Employees
These individuals receive their salary income for rendering their services, they have the possibility of receive profits and benefits from the company where they work and can declare their taxes annually.
Real estate leases
They are those individuals who receive their income from renting real estate and have the opportunity to file their taxes monthly, quarterly or once a year.
The Tax Administration Service has evolved internationally, therefore Mexico is among one of the most efficient systems of collection of taxes that works with the greatest transparency, security and professionalism that favors both individuals and businessmen.
