Keys to Understanding the Coming Tax Reform

Much advertised tax reform For the government of Andres Manuel Lopez Obrador, it will be a reality next September.

According to the chief Tax Administration Service (SAT)Hey Raquel Buenrostro, it’s going to be to deliver the repair in three months – which will actually be Miscellaneous financial– Together with the 2022 economic package, then Won’t “touch” wage workers or raise taxesThis was revealed on Monday, June 14th.

This Tuesday, President Lopez Obrador assured that the executive branch would not “in any way” promote any reform of Congress to raise taxes.

“No one will be confused, and there will be no taxes.”He insisted during his traditional morning lecture.

What is this tax reform?

It will focus on top taxpayers Determined entirely by the SAT, For years that have been delinquent in paying their due taxes.

According to Raquel Buenrostro, Half of the taxes not paid to the treasury come from this group, so the number is up to 1 trillion and 400 billion pesos, roughly one-fifth of public spending this year.

The way they have been able to avoid these amounts is by using incorrect deductions, strict tax planning and legal interpretations.

The effective income tax rate (ISR) for large taxpayers was 1.3% during 2020, which is lower than the income tax for individuals of 25.4%, while the tax on wages and salaries was 1.4%.

That’s why this reform is seen as a kind of “tax justice” All taxpayers must pay what corresponds to their income.

According to the Tax Administration Department, 10,154 annual returns were filed from top taxpayers this year, for which a total of 498,063 million pesos was paid. Corresponding to fiscal year 2020, an average of 1.33%. Which represents, on average, a tax payment of 49 million pesos.

However, these institutions earned about 3,684 million pesos in cumulative income on average for each taxpayer.

This is why the SAT focuses on this group of taxpayers who contribute the highest percentage of income, thus It expects an additional collection of about 200 billion pesos annually.

Actual income tax rates (ISR) will be applied to major taxpayers in 40 branches of economic activity, which are intended to cover a gap of 700 billion pesos from tax evasion and avoidance, an amount representing 3% of the total. Gross Domestic Product (GDP).

Similarly, there is a target in the SAT foreign trade area that in the past year, due to the pandemic, collection decreased by 15.6% in real terms. so urge Customs which must recover at least 150,000 million pesos lost.

But another large group of tax evaders are informal economy, so in the end you will also have to pay the tax burden. Which is according to the latest estimates of EY s Master Card Credit CardAnd the In Mexico, the informal economy depends on cash, which accounts for 19.2% of GDP. Which means that the volume of economic activities that are hidden from the control of the authorities or that have no registration, is the size of About 4.6 billion pesos annually, based on the size of the economy in 2019.

The loss of tax collection resulting from an informal cash-based economy is 2.6% of GDPThat is about 620,500 million pesos. this number Equivalent to 10% of the Union spending budget 2021.

This way, with this tax reform, everyone will be obligated to pay their taxes, without affecting “the same as always”.

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