As April draws to a close, taxpayers across Mexico are racing to meet the deadline for filing their annual tax returns for the fiscal year 2024. The Tax Administration Service (SAT) has reported a significant uptick in the number of declarations submitted, indicating a growing awareness among citizens of their tax obligations. According to the SAT, as of April 29, 2025, nearly 9.8 million individual tax declarations had been filed, marking an increase of 775,710 submissions compared to the same period last year, which translates to a 9 percent rise.
For many taxpayers, the hope is that their declarations will result in a balance in favor, meaning they have overpaid their taxes and are eligible for a refund. The SAT has already processed refunds totaling 23,859 million pesos, and it aims to expedite this process. The average time for a refund to be issued has been reduced to approximately eight business days, significantly shorter than the 40 business days mandated by the Federal Fiscal Code.
However, not all refund requests are guaranteed to be approved. The SAT may reject a refund for several reasons, including errors in the tax return, incorrect bank account information, invalid deductions, insufficient documentation, omission of income, or an inactive Tax Mailbox. These issues can lead to frustration for taxpayers eager to reclaim their money.
If a taxpayer finds that their refund has been rejected, the first step is to consult the reason for the rejection via their Tax Mailbox. This official communication channel is crucial for receiving notifications about the status of their refund request. Once the reason is identified, taxpayers can take corrective actions, including submitting a supplementary declaration to rectify any mistakes.
Updating bank account information is also vital. If the registered CLABE (bank account number) does not match the taxpayer's name or contains errors, the refund will not be processed. Taxpayers are advised to ensure that their account details are accurate and active, as accounts in the name of third parties will be rejected.
In cases where the rejection seems final, taxpayers can file a manual refund request. This involves navigating to the SAT's portal, selecting the "Refunds and Offsets" section, and filling out the Electronic Refund Format (FED) correctly. Required documents, such as electronic invoices (CFDI) and bank statements, must be attached. It's essential to save the receipt of submission and monitor the process through the Tax Mailbox.
Should 40 business days pass without a satisfactory response from the SAT, taxpayers have further recourse. They can file a complaint with the Taxpayer Defense Office (Prodecon), which offers free assistance, or they may consider filing a revocation appeal if they believe the rejection was unjustified.
Taxpayers should also be aware that during the refund process, the SAT retains the right to request additional information. Within the first 20 business days after a refund request, the authority may ask for further documentation to clarify any discrepancies in the tax return. If the taxpayer fails to provide the requested information within the stipulated 20 days, the refund request may be considered withdrawn, and the 40-day review period will be paused.
As the deadline for the annual declaration approaches, the SAT continues to encourage taxpayers to fulfill their obligations promptly. The agency's efforts to streamline the refund process and reduce wait times demonstrate its commitment to improving taxpayer experience and compliance.
In summary, while the SAT has made strides in facilitating tax refunds, taxpayers must remain vigilant in ensuring their submissions are accurate and complete. By understanding the common pitfalls that can lead to rejection and knowing the steps to take if a refund is denied, individuals can navigate the tax system more effectively and reclaim their hard-earned money.
As of now, the SAT's proactive measures and the increasing number of declarations signal a positive trend in tax compliance across the country. The agency's ability to process refunds swiftly and efficiently could set a new standard for taxpayer services in Mexico.
