Entities or companies taxed under the general regime of the Income Tax Law (ISR) that estimate that the profit ratio for the fiscal year 2025 will be lower than the one being used during this fiscal year, may request as from the second semester that they are authorized to reduce the provisional payments from July to December of this year, in accordance with article 14 of Income Tax Law.
In this sense, it will be necessary to prepare the projection of the profit ratio for the year and/or the tax at the end of the year, for which it is important that taxpayers estimate the accounting result, which will serve as a basis to determine if it is feasible to request such reduction.
It is important to determine the financial-tax projection for the fiscal year 2025 taking care of all the assumptions and operating plans of the company, in order to avoid making provisional payments in excess of the ISR estimated to be determined at the close of the fiscal year 2025 (and even if it is estimated that for some reason a tax loss will be obtained in such year), and thus be able to optimize the resources of the companies.
In accordance with the tax provisions, the request for authorization must be submitted to the tax authority one month prior to the date on which the monthly tax installment payment to be reduced must be made. When several provisional payments are requested to be reduced, such request must be filed one month prior to the date on which the first of them must be paid.
In this regard, in order to comply with the income tax law, in addition it will be necessary to comply with the procedure form 29/ ISR “Request for authorization to apply a lower profit ratio to determine the monthly income tax installments” contained in Annex 1-A of the miscellaneous tax resolution for fiscal year 2025.
Pursuant to the Income Tax Law, if as a result of the authorization to reduce the provisional payments, the taxpayer would have paid less than the amount that would have corresponded under the terms of the same law, the surcharges for the difference between the payments made by applying the lower coefficient and those that would have corresponded if such coefficient had not been applied must be paid.
Considering the above, in Núñez Rosas we offer our services to support you with this procedure, working together with you, in order to comply with what the authority requires, looking for the access to this procedure.
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