What is Tax Compliance?

He tax compliance has become an essential pillar for companies in Mexico. More than a simple obligation, it represents a preventive strategy to avoid sanctions, optimize resources, and ensure business continuity in the face of SAT audits.

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What is Tax Compliance?

He tax compliance It consists of implementing policies, internal controls and procedures to ensure that the company properly complies with all your tax obligations.

Its main objectives include:

1. Avoid fines, surcharges and updates for non-compliance.
2. Reduce risks of tax crimes such as fraud or the use of false invoices.
3. Improve the financial efficiency, avoiding unnecessary payments.
4. Maintain reputation before partners, banks and tax authorities.

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Key Elements of Tax Compliance

1. Identification of tax obligations
   • ISR, VAT, IEPS.
   • Withholdings from third parties.
   • Informative: DIOT, annual declarations, ISSIF, REPSE.
2. Continuous regulatory compliance
   • Declarations submitted on time.
   • Tax and withholding payments.
   • CFDI issued and received correctly stamped.
3. Tax risk control
   • EFOS/EDOS monitoring (SAT 69-B lists).
   • Documentation of deductions and credits.
   • Control of operations with related parties.
4. Monitoring and internal auditing
   • Monthly accounting-tax reconciliation.
   • Preparing for electronic reviews.
   • Periodic internal audits.
5. Training and tax culture
   • Continuing education for accounting and financial staff.
   • Update on annual tax changes.

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Tax Compliance Checklist

Monthly

• Stamping and review of issued and received CFDI.
• Reconciliation of creditable and transferred VAT.
• Provisional declarations of ISR, VAT and IEPS.
• Income tax withholdings for salaries, fees, and leases.
• Review of suppliers on list 69-B.
• Review of the SAT tax mailbox.

Quarterly

• Accumulated adjustment of provisional ISR payments.
• Comparison of accounting vs. invoiced income.
• Audit of tax deductions.
• Review of related party transactions.

Annual

• Annual income tax return and tax-accounting reconciliation.
• Annual informational reports.
• Updating controlling beneficiaries.
• Audit or tax opinion if applicable.
• Tax planning for the following year.

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Conclusions

Implement a tax compliance program not only protects the company from sanctions, but also:

• Facilita audits and electronic SAT reviews.
• Provides legal security to partners and investors.
• Optimize the cash flow by avoiding unnecessary payments.
• Contributes to a culture of transparency and fiscal responsibility.

In the digital age, where the SAT cross-references information in real time, have a tax compliance checklist It is essential to prevent risks and maintain the financial health of any business.

Learn about the financial compliance.