As every year, taxpayers in Mexico must submit their annual tax return (Declaración Anual) to the Servicio de Administración Tributaria (SAT) during April 2025.
Filing is mandatory for certain individuals and businesses to report their income, deductions, and tax payments for the previous fiscal year. Failure to comply can result in penalties, interest charges, and restrictions on tax benefits.
However, some taxpayers are exempt from filing. Read on to see if you qualify for an exemption or if you must file to avoid fines.
What Happens If You Do Not File Your Tax Return?
Failing to file your Declaración Anual on time can lead to:
- Fines and penalties from the SAT.
- Accrued interest on unpaid taxes.
- Loss of tax benefits such as deductions and refunds.
- Restrictions on issuing electronic invoices (CFDI).
- Suspension of digital tax certificates (CSD), which can prevent businesses from operating legally.
- Potential closure of businesses in severe cases.
To avoid penalties, it is crucial to file on time or confirm whether you qualify for an exemption.
Who Is Exempt from Filing a Tax Return in Mexico?
The SAT has simplified tax filing rules, allowing certain taxpayers to be exempt from submitting an annual tax return.
1. Employees with Only One Employer (Salary Income Only)
If you earn a salary from one employer only, and your employer has issued Comprobantes Fiscales Digitales por Internet (CFDI) for all your earnings, you do not need to file a tax return, even if your salary exceeds $400,000 MXN per year.
2. Individuals Earning Less Than $400,000 MXN Annually
If your total annual income from all sources does not exceed $400,000 MXN, you are not required to file a tax return, unless:
- You received income from multiple employers.
- You earned additional income beyond your salary.
- You wish to claim deductions for a potential tax refund.
3. People Earning Interest Below $20,000 MXN
If you earn interest income from investments or bank accounts but the total amount does not exceed $20,000 MXN annually, you do not need to file a tax return.
4. Government Employees
Most government employees whose salaries are already subject to automatic tax withholdings do not need to file, as long as their earnings are from a single employer.
Can You File a Tax Return Even If You Are Exempt?
Yes! Even if you are not required to file, you can voluntarily submit a tax return, which can be beneficial in certain cases.
Why File Voluntarily?
- To Claim a Tax Refund – If you had excess tax withheld, you can request a refund from the SAT.
- To Deduct Expenses – You can deduct education expenses, medical costs, mortgage interest, and more, which may result in a tax refund.
- To Keep Your Tax Records Up to Date – Filing regularly ensures your tax history is clean and well-documented for future financial transactions.
Where to Get More Information
To check your tax obligations or file your Declaración Anual, visit:
- SAT Website: https://www.sat.gob.mx/personas/declaraciones
- SAT Phone Support: 01 800 46 36 728
- SAT Local Offices: Visit your nearest tax office for in-person assistance.
Final Thoughts: Stay Compliant and Maximize Your Tax Benefits
Whether you are required to file or choose to do so voluntarily, staying informed about Mexico’s tax regulations is essential. Filing your 2025 tax return on time helps avoid penalties and may allow you to recover tax refunds through deductions.
If you qualify for an exemption, review your finances carefully—you may still benefit from filing if you have deductible expenses.
