We know that sometimes knowing why individuals must pay Income Tax (ISR) to the Tax Administration Service (SAT) can be confusing.
That is why we will explain that even bank transfers or cash deposits can generate this payment.
What does the law say? In order to explain the above, we must first cite the first part of article 1 of the Federal Income Tax Law, which ensures that the following natural and legal persons must pay this tax:
Residents in Mexico, with respect to all their income regardless of the location of the source of wealth from which they come
Residents abroad who have a permanent establishment in the country, with respect to income attributable to said permanent establishment
Residents abroad, with respect to income from sources of wealth located in national territory, when they do not have a permanent establishment in the country, or when having one, said income is not attributable to it.
It is important to mention that bank accounts are subject to review. In fact, all the money that reaches the accounts can be considered as income. Even electronic transfers can also be considered as income by the SAT. The SAT can request the payment of taxes
If considered pertinent, the SAT may request a review of the accounts to verify the increase in equity.
With this information it will be possible to request the payment of ISR and Value Added Tax (VAT); in the case of not being an income, the taxpayer will be able to prove it.
What happens in the case of cash deposits?
For cash deposits, amounts greater than 15,000 pesos can be audited by the SAT to pay taxes.
In the Income Law 2022, it is stipulated that the banks will periodically notify the cash deposits to the accounts of the taxpayers. Services or activities that generate ISR:
Wages; fee; remuneration to members of councils, administrators, commissioners, and managers
Leasing of real estate and furniture
Timeshare tourist service contracts; disposal of shares; financial leasing; royalties, technical assistance, and advertising; interests; awards; artistic activities, sports or public shows;
The distribution of remnant of legal entities for non-profit purposes
Dividends, profits, remittances, and profits distributed by legal entities; sale of real estate
Construction of works, installation, maintenance or assembly in real estate, inspection or supervision, and other income.