Absolutely everyone would like to pay less taxes to the government. Fortunately, there are ways to do so. We are not talking about evading taxes, which of course is a crime and as such is punishable by law. What we mean is that there are a whole series of tax strategies to pay less taxes in Mexico.
ISR Tax Strategies: Paying Less Taxes
At Law In Cabo we know that compliance with tax obligations is one of the issues that most concern and occupy companies. Establishing a tax strategy for the payment of ISR can help you pay less taxes.
The first step to define a strategy and to carry out a tax planning, is to make an audit of the company’s tax situation: Which is the regime in which it is registered, which are the tax obligations it must cover, which taxes it has to pay, etc.
In addition to this, the current tax laws are reviewed, since changes and updates are constantly being made to the Income Tax Law (LISR), the Miscellaneous Tax Resolution (RMF) and the Federal Tax Code (CCF).
Tax strategies to pay less taxes in Mexico
Subsequently, it can be established how and when the contributions to which the company is obliged to pay are to be paid, since taxes must be paid on all the income it generates, and this can be done in a single exhibition, or in a deferred manner so as not to affect the organization’s liquidity.
Tax deduction in the company
The LISR contemplates that corporations may deduct taxes if certain conditions are met. From article 25 to 43 of this law, there are all the possible deductions and the requirements that must be met, for example:
- The purchase of merchandise necessary for the operation of the company.
- The cost of goods sold.
- Uncollectible credits or losses due to acts of God.
- Necessary expenses for the operation, such as office rent, purchase of equipment and furniture, payment of electricity, water, internet, telephone, among others.
- Salaries of employees working for the company.
- The payment of benefits such as food vouchers, Mexican Social Security contributions and contributions to increase or create personnel pension funds.
- Investments and donations.
- Per diem payments, such as lodging, meals and transportation.
- The payment of expenses must be supported by an Internet Digital Tax Receipt (CFDI) or electronic invoice, and in the case of payments over 2,000 pesos, they must be made by electronic transfer, nominative check, credit or debit card or electronic purses authorized by the Tax Administration Service (Servicio de Administración Tributaria).
Tax strategies to pay less taxes in Mexico
How to pay less taxes?
The main thing is to always comply with your obligations in the time established by the tax authority, so you avoid surcharges, fines and audits that cost you time and money. Likewise, there are some other recommendations you can follow:
- You must have the CFDIs of all the transactions you make, so that the deduction is valid.
- Keep your accounting in order.
- Providing more benefits to your employees will not only allow you to have access to the best human capital and keep it, but you can also deduct it from taxes.
- Make your tax payments on time to avoid surcharges.
As you can see, the idea is to create a strategy that allows you to comply with your tax obligations, but without decapitalizing yourself and at the same time making your operation more effective.
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Tax strategies to pay less taxes in Mexico
At Law In Cabo we seek to satisfy the different legal needs of our clients, both in their business and personal matters. Contact us at: (+52)8119384461, where we will gladly advise you.
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