Did you know that when you file supplementary declarations within the legal deadlines, no additional charges need to be paid?
Taxpayers who are required to submit periodic Income Tax (ISR) returns are generally obligated to file provisional and annual returns. These must be submitted by the 17th of the month following the relevant period, while the annual returns for corporations must be filed within the first three months after the fiscal year, and for individuals, in April of the following year (Articles 9 and 150, Income Tax Law – LISR).
To fulfill this obligation, individuals must file the returns in digital documents with an electronic signature and include the information specified by the Tax Administration Service (SAT) through general rules. They must also meet any additional requirements specified in these returns and, if applicable, make the corresponding payment via electronic funds transfer. These requirements frequently change, which creates an administrative burden for taxpayers (Article 3, Federal Tax Code – CFF and Rule 2.8.3.1, Miscellaneous Tax Resolution – RMISC).
Nature of the declarations submitted
The declarations submitted by taxpayers are definitive and can only be modified by them up to three times, through the submission of a supplementary declaration, provided that the exercise of verification powers has not been initiated. These declarations must contain all the required information, even if only one of the elements is modified, and in such cases, the supplementary declarations will be used to modify the obligations (Article 32, Federal Tax Code – CFF and Rule 2.8.3.3, Miscellaneous Tax Resolution – RMISC).
If the supplementary declaration determines that the payment made was less than it should have been, interest will be charged on the difference of the updated tax, as long as the tax is not paid on the due date or within the time frame established by tax regulations. In this case, the surcharges, in addition to the omitted tax, will be determined from the month the payment should have been made until the payment is actually made (Articles 21 and 32, CFF).
Based on the above, taxpayers can correct the information submitted in their declarations, as long as it complies with the limits established in the cited Article 32 of the CFF. If there are discrepancies in the declared taxes, they will only have to pay the difference with updates and interest if those discrepancies are paid after the legal deadlines. Therefore, if supplementary declarations are submitted within the legal deadlines, only the historical tax should be paid, and it will be considered filed on time. This is because it does not fall under the situations outlined in the aforementioned Article 21 of the CFF, as the tax would be paid within the legal deadlines.
When supplementary declarations are submitted before the legal deadline expires, must surcharges be paid for the resulting differences?
No, interest and penalties will only be paid when the resulting differences are paid outside the legal deadlines. Therefore, if supplementary declarations are submitted within the legal deadlines, only the historical tax should be paid. This is because it does not fall under the situations outlined in the aforementioned Article 21 of the Federal Tax Code (CFF), since the tax would be paid within the legal deadlines.