The Annual Tax Return for Mexican corporations corresponding to fiscal year 2025 must be filed no later than March 31, 2026. This process is not just a statutory obligation — it is also a critical checkpoint for CFOs and finance leaders to validate compliance, assess financial performance, and identify planning opportunities for the following year.
SAT Filing Platform Timeline
The SAT (Mexican Tax Authority) usually enables the consultation module by the end of December, and by January 2026 the system is ready to accept filings. Companies that prepare early can reconcile accounting and tax positions ahead of time, ensuring a smoother process in March.
Key Components of the Annual Return
1. Annual Corporate Income Tax Calculation
The annual return requires a full computation of Corporate Income Tax (ISR). CFOs must ensure that all figures are consistent with official e-invoices (CFDIs):
- Taxable income must reconcile against issued CFDIs.
- Authorized deductions must be properly supported by valid CFDIs and payments when required.
- Provisional tax payments made throughout 2025 should be applied against the annual liability.
2. Contable–Fiscal Reconciliation
TO reconciliation between accounting profit and taxable income is mandatory. Differences must be explained through fiscal adjustments such as:
- Depreciation (accounting vs. tax rules).
- Non-deductible provisions and expenses.
- Inflationary adjustments.
This reconciliation is a core control point for SAT and a key area where CFOs should ensure accuracy.
3. Payroll and Withholding Obligations
- Salaries and wages must match the timbrados (stamped CFDI payroll receipts).
- ISR withholdings on payroll, professional fees, and rents must be fully paid and reflected in the system.
- Professional service providers’ CFDIs should also be properly reported.
4. Financial Statements Submission
The filing includes key financial statements:
- Balance Sheet.
- Income Statement.
These must reconcile with the company’s official trial balance and tax workpapers.
5. Critical Year-End Reviews
Before submitting the annual return, CFOs should ensure that:
- Accounts receivable and payable aging reports are updated and reviewed.
- Advances to suppliers or from clients are correctly applied.
- Goods in transit are properly recorded.
- Reserves are booked for doubtful accounts, obsolete inventory, or product warranties, as applicable.
- XML revenue files reconcile with declared sales.
- Employee benefit provisions (vacation, severance, bonuses) are properly accrued.
Strategic Considerations for CFOs
While the annual return is primarily about compliance, it is also a strategic opportunity:
- Detect discrepancies between accounting and tax early.
- Mitigate risk of penalties, surcharges, and audits.
- Evaluate tax planning opportunities for 2026.
- Provide shareholders and investors with greater financial transparency.
Filing the 2025 Annual Tax Return in Mexico is not just about meeting the March 31, 2026 deadline. For CFOs and business leaders, it is about ensuring tax compliance, financial accuracy, and aligning fiscal results with strategic business decisions.
0 Comments