Small and medium-sized enterprises (SMEs) are crucial to the Mexican economy, yet nearly a third of them fail due to poor management, making fiscal incentives a viable option.
One of the biggest challenges for SMEs is tax burden and access to financing. Tax burdens should be reduced, and specific tax incentives for SMEs can alleviate their financial strain and promote growth.
Some of the most significant incentives for Mexican businesses are those engaged in rental and leasing activities. One advantage of this modality is that it does not require reporting VAT information in the annual income tax return, but only in the informative business statement with third parties (known as "DIOT"). They can also make personal deductions that can be reduced in the annual tax return.
Another example is participation in the Simplified Trust Regime ("RESICO"), which applies to legal entities with annual income of less than 35 million pesos and individuals engaged in business earning less than 3.5 million pesos per year.
At the same time, it is necessary to facilitate access to financing through preferential credit programs and simplify loan application procedures.
Tools That Could Improve Prospects for SMEs
In the digital age, the availability of suitable technological tools for operational efficiency is crucial for SMEs. The adoption of management and accounting software offers numerous advantages, such as more efficient and accessible management from any device with internet access.
Additionally, it facilitates compliance with tax obligations and decision-making based on accurate and up-to-date data, thereby ensuring and supporting information security.
Digitalization also enables the automation of administrative and accounting processes, saving time and reducing operating costs. SMEs can focus on strategic and growth activities instead of allocating resources to manual and repetitive tasks. It also facilitates internal and external collaboration and communication, allowing teams to work more cohesively and efficiently.
Another significant advantage of digitalization is real-time access to analytics and reports. With current data, SMEs can quickly identify opportunities and risks, enabling them to adapt their strategies flexibly.
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