Business · Economy · 4 hrs ago
Mexico’s 2027 tax relief program will cover companies of all sizes
Mexico’s tax authority, the SAT, has recorded 3.3 trillion pesos in unpaid tax credits as of the end of September.
Manufacturing, commerce and professional services account for many of these debts, and 87% of the credits are owed by companies.
The SAT’s tax regularization program will continue in 2027 and can reduce penalties, surcharges and collection costs by up to 100% for taxpayers who settle their taxes.
The 2027 program will be open to companies of all income levels, removing the 300-million-peso limit that applies through 2026.
Tax authorities say improved data tools, tougher audits and reviews of pandemic-era tax payments have contributed to the growth in credits.
About 60.6% of the total is being challenged by taxpayers, and resolving cases through the courts can take two to three years.
The program is intended to help the government collect debts while taxpayers avoid those extra charges.
Mexico’s 2027 Tax Regularization Program will be open to companies of all income levels, removing the current 300 million peso limit.
The program will offer discounts of up to 100% on fines, surcharges and enforcement costs for taxpayers who bring their tax payments up to date.
At the end of September, outstanding tax credits reached a record 3.3 trillion pesos, 4.6 times the amount reported at the end of 2019.
About 60.6% of those credits, equivalent to two trillion pesos, are being contested by taxpayers.
Tax specialists said the program could help the government recover debts while avoiding lengthy legal proceedings.
- Who
- Mexico’s Tax Administration Service (SAT) will run the program; eligible companies and other taxpayers can benefit.
- What
- The 2027 Tax Regularization Program will extend to companies of all income levels and offer discounts of up to 100% on certain charges.
- When
- The program will continue in 2027.
- Where
- Mexico.
- Why
- It is intended to help taxpayers settle tax debts and enable the government to recover outstanding credits.
This story does not have two clearly opposing sides.
Outstanding tax credit balances were reported at a level one-fourth of the amount recorded at the end of September.
The SAT determined credits against companies that had been forced to stop paying taxes during the COVID-19 pandemic.
Tax credits reached a record 3.3 trillion pesos.
The program’s 300 million peso income limit applies.
The program will be accessible to companies of all income levels.
- Program year
- 2027
- Income limit
- 300 million pesos through 2026; removed for the 2027 program
- Maximum discounts
- 100% on fines, surcharges and enforcement costs
- Tax credits
- 3.3 trillion pesos at the end of September
- Contested credits
- 60.6%, or two trillion pesos
- Corporate share
- 87% of tax credits were attributed to legal entities
1 source
What people are saying
By removing this limit, the Program is also extended to large taxpayers (…) this will be an extraordinary mechanism for managing the portfolio, without having to generate other types of collection actions or audit programs.
The authority will recover the credit, plus adjustments, and the taxpayer will stop paying fines, surcharges and enforcement costs.