The annual tax declaration period is here, and with it, many Mexican citizens are preparing to submit their 2025 income tax return to the Servicio de Administración Tributaria (SAT). This process is not just technical; it’s obligatory and important for everyone, whether they’re individuals or businesses.
For 2025, key deadlines are approaching. Companies (personas morales) must file by March 31, and individuals (personas físicas) must meet the deadline by April 30. With the right documentation, many taxpayers may find themselves eligible for tax refunds—a much-needed financial boost amid rising living costs.
One of the most significant factors influencing the refund is the use of personal deductions. The most common deductible expenses include medical costs, such as doctor visits, prescriptions, and specialty care; premiums for medical insurance; funeral expenses; charitable donations; tuition fees for private schools; transportation expenses for education; retirement contributions; and even mortgage interest payments.
All of these expenses must be substantiated with valid electronic invoices (known as facturas electrónicas), which should be issued to the taxpayer and accompanied by proof of payment. The payments need to have been made through electronic methods, such as bank transfers, credit or debit cards, or checks, as cash payments are not eligible for deductions.
Before initiating the refund process, taxpayers need to meet several criteria. They must have received deductions amounting to overpayments or withheld amounts, have valid CFDI (Digital Tax Receipts) for these deductions, and they should have no outstanding tax debts. Once these conditions are satisfied, taxpayers can begin the request for refunds through the SAT’s official site, www.sat.gob.mx/portal/public/home.
To navigate the site, individuals should verify if their pre-filled information is correct and then provide all requisite details for the taxes, including the concepts involved, periods, and exercises. They must also fill out banking information to facilitate the refund, include relevant statements, and finally submit everything with their electronic signature (e.firma). It’s important to keep the receipt of this submission for future reference.
The SAT commits to processing refunds within 40 business days. For many, this can provide timely financial relief. Interestingly, for some taxpayers, refunds can be automatically processed at the conclusion of their annual declarations—no formal request needed. This automatic refund feature, though, is limited to cases where the refund amount is less than 150,000 pesos, and won't apply to everyone.