By MARK LORENZANA
On Wednesday, June 8, Mexico’s Tax Administration Service (SAT) announced that it is extending until Jan. 1, 2023, the deadline for employees to submit their Certificate of Fiscal Situation or tax data to their employers, from the original July 1, 2022, deadline.
In April of this year, the SAT imposed a new requirement for the issuance of Digital Tax Receipts by Internet (CFDI) in its new version 4.0, which now requires additional information, such as the postal code of the worker’s address, in the case of payroll invoices. In addition to the postal code, taxpayer classification will also be added.
Immediately after the April announcement, hundreds of taxpayers scrambled to visit their nearest SAT office, causing long lines outside the offices. Faced with these long lines, the SAT, on Friday, May 27, said that companies with 400 workers or more can request certificates of their employees in bulk — each company only needs their legal representative to email a request to the SAT.
The extended deadline is a relief, especially for employees who have not been able to obtain their certificates yet. The majority of the workers who were forced to visit their closest SAT office failed to obtain their certificates online because of webpage failures.
Experts have said that the mad scramble by employees to obtain their Certificates of Fiscal Situation has caused more harm than good: It has resulted in work absenteeism, wasted office time, lost productivity and workers asking their colleagues by proxy to obtain their certificates on their behalf.
Because of this added burden to both employers and employees, a request was made by a group composed of public accountants, private individuals and the Taxpayer Defense Attorney’s Office (Prodecon) for the SAT to postpone its deadline to January of next year.
According to Jesús Rodríguez Ambríz, president of the Mexican Association of Public Accountants (AMCP), the original deadline — which gave people barely three months to comply — was a waste of time and money for both taxpayers and companies. He stated that SAT authorities mishandled the situation, citing long queues and barely functional online services from the SAT website, which caused the long lines in the first place.
The president of the Mexican Institute of Public Accountants (IMCP), Laura Grajeda, said that the new deadline was a huge relief, especially in the midst of what could be the fifth wave of the covid-19 pandemic in Mexico.
“It was a wise move to give more time in the face of rising covid-19 cases that we are seeing in several states,” she said.
In turn, Pablo Cervantes, a member of the Fiscal Technical Commission of the Association of Public Accountants of Mexico (CCPM), agreed that extending the transition period was the right decision, to avoid causing greater financial damage to both workers and employees.
In addition, according to Mexico’s Finance and Public Credit Secretariat (SHCP), it now costs more to be in good standing with the treasury than a year ago.
An individual taxpayer now has to pay 13,128 pesos to be in good standing with the Treasury, when a year ago the requirement was only 10,654 pesos. For companies, the increase went from 38,000 pesos last year to 50,226 pesos this year.