La Silla Rota: SAT Fines for Failing to File 2025 Annual Tax Return Range from 14,000 to 28,000 Pesos

Individuals obligated to file their 2025 Annual Tax Return who fail to do so may face fines from the Tax Administration Service (SAT) ranging from 14,230 pesos to 28,490 pesos, reported Lauro Acero Loredo, Tax Practice Managing Partner at Baker Tilly Mexico.

During the presentation of the Annual Tax Return for individuals, Gari Flores Hernández González, SAT's General Administrator of Revenue, stated that the tax authority projects more than 11,424,000 annual filings, representing a 3% increase compared to the previous year.

Who Must File? All individuals engaged in professional and commercial activities must file an Annual Tax Return, as well as salaried employees with annual incomes exceeding 400,000 pesos. Furthermore, he noted requirements for taxpayers who had two employers during the fiscal year, those who started a new job after January 1, 2025, or those who changed jobs before December 31.

High Compliance Rates Acero Loredo mentioned that the vast majority of individuals fulfill their tax obligations because the primary benefit of filing is the ability to apply personal deductions.

"These include well-known expenses such as medical fees and mortgage interest, among others. By submitting these personal deductions, a tax refund (saldo a favor) should automatically be generated, meaning the tax authority returns money from taxes previously paid. Therefore, compliance among individuals remains high," he noted.

In 2025, Income Tax (ISR) collection from individuals reached 96,894 million pesos, while Value Added Tax (VAT) revenue totaled 53,619 million pesos.

What if the Tax Refund Has Not Been Issued? Acero Loredo explained that SAT’s goal for the automatic refundprogram is 5 days. "It often takes a bit longer; however, in most cases, it is a streamlined process," he said. He added that if the authority does not issue a refund, the reason for the denial is specified on the SAT website.

"Right there, they inform you if, based on their review, they did not see a balance in your favor, if the refund amount was reduced, or if it was denied because they disagree with the declared balance," he pointed out.

Taxpayers who did not receive a refund but believe they are entitled to one must submit a manual refund request by completing Form 32. This process carries a 40-business-day period. If the authority chooses to exercise its power to request additional information, it typically does so within the first 20 business days.

"The authority sends what we call a request for additional information, asking for data they deem necessary to validate the refund. The taxpayer is then granted an additional 20 business days to provide that information. The entire process is conducted through the authority's website," he added.

SEO Summary: Failing to file the 2025 Annual Tax Return in Mexico can result in SAT fines up to 28,490 pesos. Baker Tilly expert Lauro Acero Loredo outlines filing requirements, personal deductions, and the manual tax refund process.