As of April 1, 2025, individuals in Mexico are required to file their Annual Tax Return for the year 2024. This annual obligation comes with specific guidelines on what can be deducted, particularly concerning tuition fees for private schools. The Tax Administration Service (SAT) has outlined various scenarios under which individuals must file their tax returns.
To begin with, anyone earning over 400,000 pesos in 2024 must file their annual return. Additionally, individuals who worked for two or more employers simultaneously during the year, even if their income did not surpass the 400,000 pesos threshold, are also obligated to file. Other circumstances that necessitate filing include having requested in writing that an employer not submit a return, ceasing services before December 31, 2024, or receiving income from non-withholding sources, such as embassies or international organizations.
Moreover, those who have received cumulative income from sources other than salaries, such as fees or rental income, must also file. The same applies to individuals who received retirement, pension, or any form of labor compensation. The filing period is set between April 1 and April 30, 2025, giving taxpayers a month to comply with this requirement.
One of the significant aspects of the tax return is the ability to deduct certain expenses, particularly tuition fees paid to private educational institutions. According to SAT guidelines, these deductions can significantly reduce the taxable income of individuals. To qualify for the deduction, payments must be made to private schools that have official authorization and recognition for educational validity.
The deductibility of tuition fees is capped based on the educational level of the student. The limits are as follows: 14,200 pesos for preschool, 12,900 pesos for primary education, 19,900 pesos for secondary education, 17,100 pesos for technical professional education, and 24,500 pesos for baccalaureate or equivalent studies. It's crucial to note that these payments must be made through bank transfers, checks, or credit and debit cards; cash payments are not eligible for deductions.
In addition to tuition deductions, there are specific income thresholds that determine whether individuals must file their annual returns. For instance, if a taxpayer's income comes solely from salaries and does not exceed 400,000 pesos annually, they are not required to file. This exemption also applies to nominal interest income that does not exceed 20,000 pesos. Taxpayers with a balance in their favor of less than 10,000 pesos can file their returns at any time throughout the year, even via telephone, using a simplified process provided by the SAT.
However, if the balance exceeds 10,000 pesos, the taxpayer must use an electronic signature (e.firma) to complete the filing process. For those engaging in freelance work or receiving other forms of income, it is advisable to file a return to avoid future complications with tax authorities.
Taxpayers who invest and receive interest income may also be required to file, especially if their income from salaries and interest exceeds specified limits. According to Article 134 of the Income Tax Law, individuals earning salaries from a single employer and receiving more than 20,000 pesos in interest from financial institutions are obligated to file their returns. Conversely, freelancers or individuals earning interest under 100,000 pesos are not required to file.
As the deadline approaches, many taxpayers are gathering necessary documentation to ensure compliance with their tax obligations. The SAT has also introduced a new measure that benefits both individuals and legal entities by eliminating the requirement for certain taxpayers to declare their deductions, income, and pension payments.
This change particularly affects those under the Simplified Trust Regime (RESICO), which is designed for individuals with annual incomes below 3.5 million pesos and legal entities with profits under 35 million pesos. The SAT emphasizes that this initiative aims to lower tax burdens for those with lower incomes, simplifying the tax process for many.
In summary, the annual tax declaration process is upon taxpayers in Mexico, with specific guidelines regarding who must file and what can be deducted. As April 1 approaches, individuals are encouraged to familiarize themselves with the requirements to avoid penalties and ensure they take advantage of available deductions, particularly those related to education.
For further assistance, taxpayers can visit the SAT's official website or contact their helpline for guidance on completing their annual tax return.
