Tax Administration Service in Mexico reported an increase

The Tax Administration Service in Mexico reported, in preliminary data, that between January and August, tax collection grew by 7.5% annually in real terms.

As a result, the revenue through this channel amounts to 2 trillion 993.882 billion pesos.

The decentralized body of the Ministry of Finance and Public Credit (SHCP) detailed that there has been a sustained increase in tax revenues throughout the six-year term.

The Tax Administration Service in Mexico compared August 2023 with the same period in 2018.

The results were very positive, as there were an additional 926 billion pesos, a nominal increase of 45%, and a real increase of 12.5%.

Similarly, the Tax Administration Service in Mexico emphasized that despite the annual growth of 7.5%, tax collections were 123.782 billion pesos below what was scheduled by the SHCP for the mentioned period.

Meanwhile, tax collection in 2023 has not met the federal government’s targets.

In this regard, the Tax Administration Service in Mexico believes that this is due to the behavior of the Value Added Tax (IVA), which has been affected by the appreciation of the peso against the dollar and by refunds.

It should be noted that the Tax Administration Service in Mexico reported that from January to August, 836.125 billion pesos have been collected.

However, this amount is lower than the 856 billion pesos obtained in the same period in 2022.

The tax authority highlighted that the gross IVA, which does not account for refunds, has collected 824.574 million pesos for domestic operations, representing a real growth of 4.6% compared to the same period in 2022.

Tax Administration Service in Mexico: Growth in ISR and IEPS

The SAT reported that the collection of the Income Tax (ISR) increased by 3.6% annually, reaching just over 1.5 trillion pesos by the end of August.

According to the Tax Administration Service in Mexico, this is a sign of the country’s economic growth, as companies are achieving good profits.

The withholding of ISR from wages and salaries increased by 3.3% annually, reaching more than 860 million pesos.

According to the SAT, this growth “indicates that there are increasingly more formal jobs, and salaries have improved during the current administration.”

Meanwhile, the Special Tax on Production and Services (IEPS) saw a real annual increase of 500% “due to the implementation of complementary IEPS incentives for gasoline in the previous year to prevent price increases and combat inflation.”

By the end of August, the collection of this tax amounted to 285.795 billion pesos.

Finally, secondary tax collection grew by 30% annually according to official figures.

It’s important to note that secondary tax collection is obtained through federal tax audits and the efficiency program.

In this regard, with the implementation of the 2023 Master Tax and Collection Plan, the fiscal authority collected 535.798 billion pesos between January and August, representing a real annual increase of 30%.

The collection from audits of large taxpayers amounted to 193.557 billion pesos in the mentioned period, signifying a real annual increase of 53%.

The secondary tax collection by the Federal Tax Audit Administration reached 115.685 billion pesos by the end of August, marking a real annual increase of 22.6%.

The Tax Administration Service in Mexico collected 63.300 billion pesos through audits of foreign trade activities, resulting in a real annual increase of 17.8%.

The efficiency collection program garnered 163.256 billion pesos, with a real annual increase of 16.4%.

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