When the Annual Tax Return is completed and, after calculating the monthly provisional payments and deductions, the taxpayer ends up with a negative balance due to Income Tax, we are talking about ISR due . This negative amount must be settled before the SAT.
ISR on payroll
The ISR on payroll is when a salaried worker receives income from an employer who hired him and pays him a gross salary, to which the ISR is applied , in addition to withholdings and subsidies. On the payroll receipt, the employee will find the breakdown of his payment before and after taxes.
ISR withheld
We are talking about withheld ISR afghanistan phone data when an employer “saves” the payment corresponding to the ISR by deducting it from the employee’s salary, and then paying it to the SAT. In other words, in the biweekly payment that the employee will receive, he will find on his pay stub the amount withheld corresponding to the ISR from his gross salary.
Who regulates the ISR?
The legal foundations and tax procedures surrounding the ISR are included in the Income Tax Law (LISR) , a document that indicates who, how and under what circumstances we must pay the tax. Therefore, when I mention any article, keep in mind that we will refer to the data in this law.
In addition, whenever the criteria for the collection and collection of this tax change or are adjusted, these adjustments appear in the Miscellaneous Tax Resolution (RMF). For example, the changes for this year and the rates for the collection of the ISR are in the RMF for 2024 .
Who pays the ISR?
The payment of Income Tax applies to individuals and corporations that:
Reside in Mexico.
They reside abroad, but have a permanent establishment in Mexican territory.
They reside abroad, but their income comes from sources of wealth in Mexico.
And in case you were wondering what a “permanent establishment” is, the answer is in Article 2 of the LISR, which clarifies that it is:
Any place of business where business activities are carried out, partially or totally, or independent personal services are provided. A permanent establishment shall be understood to include, among others, branches, agencies, offices, factories, workshops, installations, mines, quarries or any place of exploration, extraction or exploitation of natural resources.”
So, if you are a professional or merchant residing in Mexico, a businessman with a company that operates in Mexican territory or a foreigner who obtains income from commercial or professional activities in this country, you have the fiscal obligation to pay the ISR through provisional and annual tax returns.