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Recommendations for 2024 annual returns
March 25, 2025
Ana Gabriela Vázquez
The annual tax return is one of the most critical times of the year for businesses in Mexico. The process involves not only complying with tax obligations but also taking advantage of opportunities to optimize resources and avoid errors that could result in penalties. As 2025 approaches, businesses must be prepared for potential tax updates and regulatory changes, while maintaining best practices for filing an accurate and efficient return.
Below, we explore some key recommendations to ensure the 2025 annual return is handled appropriately, helping businesses optimize their tax burden and minimize risks.
1. Keep Your Accounting Records Updated and Organized
One of the most important aspects of an accurate annual return is having well-organized accounting records. Failure to provide adequate documentation can cause delays and complications during the audit process or even result in penalties.
Recommendations:
– Review your accounting books: Make sure all transactions are recorded correctly, including income, expenses, and any adjustments that may have been necessary during the year.
– Check electronic invoices: Verify that all invoices issued and received are in CFDI (Digital Tax Receipt via the Internet) format and are properly recorded in your accounting system.
It's important to stay up-to-date on tax updates that may affect deductions and exemptions for the 2025 tax year.
2. Take advantage of the permitted tax deductions
Tax deductions can help you significantly reduce the taxable income on which your taxes are calculated. However, it's crucial to be familiar with the allowable deductions and ensure you meet all the requirements for them to be accepted by the SAT.
Recommendations:
– Review personal and payroll deductions: Whether you're a legal entity or an individual, be sure to properly deduct operating expenses, payroll, investments in assets, and other expenses that are deductible under tax law.
– Don’t forget VAT deductions: Make sure that value-added taxes (VAT) are properly recorded, both on purchases and sales.
It's important to stay up-to-date on tax updates that may affect deductions and exemptions for the 2025 tax year.
3. Review and Verify Previous Provisional Payments
The annual tax return process also involves verifying that provisional tax payments, such as income tax (ISR) and VAT, have been made correctly during the year. This is essential to avoid discrepancies in the balance due or in the balance in favor of the taxpayer.
Recommendations:
– Review your provisional payments: Check that you've made the appropriate provisional payments, both in amount and on time. If you haven't, you may have to pay late fees and fines.
– Review the previous statements: Make sure all monthly or quarterly tax returns have been filed correctly.
Having an accurate reconciliation between provisional payments and the annual return is key to avoiding surprises.
4. Check the Additional Obligations for International Concepts
If your company has international operations or conducts transactions with related parties outside of Mexico, you must ensure compliance with tax obligations related to transfer pricing and international taxes.
Recommendations:
– Transfer prices: Ensure you have adequate documentation on transfer pricing for transactions between related parties, in accordance with the SAT's tax regulations.
– International tax returns: If you operate internationally, make sure you comply with regulations that may involve reporting income from abroad or foreign companies.
Proper compliance in these areas is crucial to avoid audits and sanctions from the SAT.
5. Use Digital Tools to Optimize the Process
The annual tax return process can be arduous, but digital accounting and e-invoicing tools allow you to simplify and streamline the process. Having an automated system not only saves time but also reduces human error and facilitates compliance with tax regulations.
Recommendations:
– Automate your accounting records: Use specialized software that allows you to integrate electronic invoicing, expense recording, and automatic tax calculation.
– Connect your accounting system to the SAT: Some accounting platforms already allow direct integration with the SAT portal, making it easier to file your annual return efficiently.
Digitizing these processes is one of the best ways to ensure your company complies with tax regulations accurately and in a timely manner.
6. Consult a Tax Expert
Although technology makes the process easier, it's always advisable to seek the support of a tax expert. A specialized accountant or consultant can help you identify areas for tax optimization, review the correct classification of your deductions, and ensure everything complies with the law.
Recommendations:
– Hire an expert accountant: If you don't have an in-house accounting team, it's a good idea to hire an accountant who can guide you through the annual tax return process.
– Consult the latest tax updates: Tax reforms can change every year. A specialist can help you understand how these changes impact your annual return.
Annual tax returns are a crucial process that not only ensures tax compliance but also represents an opportunity to optimize your company's finances. With the tax and technological changes set to be implemented in 2025, being prepared and having a well-organized system can make the difference between a smooth process and one fraught with complications.
Remember that organization, careful review of deductions, and the adoption of digital tools are key elements for a successful tax return. If you need additional support preparing your annual return, enlisting the help of an accounting and tax expert, like CB Strategy, can help you navigate these processes and ensure you efficiently comply with all your tax obligations.
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