Mexico: Annual declaration 2022 for legal entities
Application for filling out 2022 annual declaration for legal entities is due 31 March 2023
Application for filling out 2022 annual declaration for legal entities, due 31 March 2023
The tax administration service (servicio de administración tributaria—SAT) released the application for filling out the 2022 annual declaration for legal entities, which is due 31 March 2023.
Entities must indicate if they are obliged or choose to present an opinion on financial statements, or if they are obliged to present information on the fiscal situation (Issif) of the taxpayer.
In the event that the taxpayer indicates that they will not present an opinion on financial statements or Issif, they must fill in the data referring to cumulative income and authorized deductions in the "Financial Statements" section, which contains five subsections that contemplate comparative figures with 2021:
- Financial situation
- Results
- Cash flow
- Changes in stockholders' equity
- Conciliation
In the previous version of the application, it was only necessary to fill in the information for the current year, as well as the subsections for financial situation, results and reconciliation.
If the taxpayers state that they will present an opinion on financial statements or Issif, the sections of the financial statements will not be displayed, since the information will be sent through the aforementioned materials.
KPMG observation
It is important to take into account that, for each item of the financial statements, the option to add "Notes" is displayed. For such purposes, the instructions of the application itself indicate that companies may detail what they deem necessary with respect to the corresponding account or subaccount.
Within the tax accounting reconciliation, more detailed information is requested and the "Others" field is no longer contemplated within the items in reconciliation, so it will be necessary to choose one of the concepts pre-established by the application, which can generate a practical problem, since, depending on the characteristics of each taxpayer, there are various concepts for their reconciliation items that are not necessarily contemplated in the application.
In terms of income, the detail of exempt and non-cumulative income is added. In case of not having this type of income, the company must declare it. Additionally, there are new concepts of cumulative income that will need to be broken down, for example, profit from derivative operations referring to an exchange rate, tax profit from the sale or transfer of portfolio, among others.
Regarding authorized deductions, concepts that will need to be detailed are added, for example, the amounts paid to individuals for fees or if they are taxed under the simplified trust regime, among others.
Considering the various changes within the application, it is necessary to express more information and at a higher level of detail, so tax professionals suggest collecting the data required to fill out the form in a timely manner.
Read a January 2023 report (Spanish) prepared by the KPMG member firm in Mexico
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