The Mexican tax year runs from 1 January to 31 December. For non-residents who pay income tax on Mexican-source compensation income, the tax year is the 12-month period that starts with the first month the non-resident is subject to tax.
All residents receiving income during the calendar year are required to file an annual tax return no later than 30 April of the succeeding year, except in certain cases. For 2019 returns, the deadline was extended to 30 June 2020 due to COVID-19. When an individual earns Mexican bank interest only, and it is less than MXN 100,000 per year, no tax return filing is required. Residents receiving only compensation income will be required to file an annual income tax return only if total compensation for the year exceeds MXN 400,000, and certain other conditions are met.
Although joint returns are not allowed, miscellaneous rules allow a married couple to have the highest income earner report all investment income. Since income splitting is not allowed, personal service income should be declared by the spouse earning it.
Under the current rules, most taxpayers must file the annual tax return electronically and will need to have previously registered an advanced electronic signature, which will be used in the return filing process.
Under certain circumstances, individuals are required to report six non-taxable items on their annual tax returns, for informational purposes only. These items include loan proceeds, prizes, gifts, inheritances, proceeds from the sale of a personal residence, and travel expense reimbursements. Although disclosed on the return, these items remain non-taxable. If these items are not disclosed, there is a risk to lose their tax-exempt treatment.
In addition to the obligation to file an annual tax return, individuals are also required to file an annual tax haven investment information report by 29 February (see Tax haven investments in the Income determination section for more information).
Payment of tax
The balance due is payable upon filing the return. The full tax on salary income and certain interest and dividend income is withheld at source. However, in the case of salaries received by resident individuals from non-resident employers (and non-resident employees subject to the non-resident tax on salaries), Mexican law requires the filing of personal monthly provisional tax returns to pay an amount equal to the tax withholding applicable to these wages. The monthly returns are generally due by the 17th day of the following month, and are filed electronically.