Mexico: Tax master plan 2024
Details actions authorities will implement in terms of audits, collection, and taxpayer assistance
Details actions authorities will implement in terms of audits, collection, and assistance
The Mexico tax administration (SAT) on 22 January 2024 published the Tax Master Plan 2024 (Spanish) [PDF 1.1 MB], which details the actions the authorities will implement in terms of audits, collection, and taxpayer assistance, as it is planning to increase tax collection for this year by 10% or more.
Among the highlights, the SAT states that it will implement artificial intelligence with the aim of improving tax collection, focusing on the review of vulnerable activities, inconsistencies on e-invoicing (CFDI), value added tax (VAT) refunds, trade and customs taxes, fuel taxes, simulated operations, payroll outsourcing, among others.
Particularly on indirect taxes, proper compliance becomes a critical aspect for taxpayers, especially taking into consideration that among the main concepts and behaviors that will be under extreme surveillance by the authorities include VAT refunds, zero-rate and non-taxable VAT transactions, VAT related to import activities, and application of credits on excise tax (IEPS).
Additionally, for 2024 the SAT will also focus on auditing digital platforms, electronic commerce (e-commerce) and online payment platforms. Tax inspections will target the automotive sector, pharmaceutical, construction, transport and logistics, advertising, oil and gas, hoteling, metallurgical, finance and insurance, alcohol beverages, among others.
KPMG observation
Without a tax reform for 2024, the Mexican tax authorities are focusing on proper and on time tax compliance, using advance technology, data management, statistics, and artificial intelligence, to maximize tax collection in their audits.
Entities need to identify their internal tax process, evaluate risks, and with the assistance of tax advisors, implement controls and tax technology to comply and avoid potential actions by the tax administration.
For more information, contact a KPMG tax professional in Mexico:
Antonio Zuazua | azuazua@kpmg.com.mx
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