The maximum amount you can receive in remittances without declaring ISR to the SAT

background for business, economics and finance issues

Many families in Mexico receive remittances from abroad but we tell you what the limit is so that you do not have to pay taxes to the SAT.

Many Mexicans, seeking a better economic situation for themselves and their families, are sometimes pressured to emigrate in search of new job opportunities, with which they can not only survive, but also obtain a surplus that they can send to their families or friends. in difficulties in their place of origin. These money transfers are commonly known as remittances and it is common for them to support entire families in Mexico, who receive these economic resources from abroad, mainly from the United States.

Workers who work economically from other countries are usually in charge of researching which are the most accessible remittance companies to be able to send money to their family efficiently, with fewer commissions, the most convenient exchange rate and that are within the reach of their relatives. in their town of origin to take full advantage of the support and that they can satisfy their needs with the dollars that they receive, converted into national currency.

Although one aspect that is not always taken into consideration with this type of operations is the tax obligations incurred with these international transfers, so taxes would have to be paid to the Tax Administration Service (SAT), which is the agency in charge of collection for the Ministry of Finance and Public Credit (SHCP).

As such, the Income Tax Law (LISR) does not refer to remittances as receipts that are free of tax, although depending on the intention of the person sending them, their purpose can be taken into account to determine that they should not be taxed. this family income.

What the SAT says about taxes on remittances sent by family members abroad
Said legislation, in its Article 93, Section XXVI, establishes that the income that individuals obtain under the concept of food is exempt from the payment of ISR, while when received as donations between spouses, or direct descendants, they are also free. of this payment, as well as to direct ascendants if they are not ultimately alienated by other relatives.

In any case, you should consider that the tax authority may be aware of the transactions and require more information when it considers that they may be income on which taxes must be paid.

This is why the SAT must be notified of the receipt of these economic resources, making the corresponding Annual Tax Declaration to report the resources received under this assumption and thus not having to pay taxes on them.

What is the maximum amount I can receive from remittances without paying ISR?
But you must keep in mind that there is a limit above which the ISR payment must be reported to the treasury, and it is when crossing the threshold of 600 thousand pesos during the fiscal year, in the case of both donations – and remittances – , loans and prizes, either individually or collectively.

It is important to take this point into account, because if a person requests a loan of around 500 thousand pesos, but receives more than 100 thousand pesos from a family member in the same fiscal year, then this limit would be exceeded and the SAT must be informed in detail. the means and formats in which these amounts were received.

That is why account statements and other proof of remittance shipments must be safeguarded for at least 5 years, to disprove any suspicion on the part of the tax authority and to be able to clarify that these are donations in the form of remittances to avoid problems.

Source: Mi Bolsillo