A tax regime is the set of laws and standards that govern the tax situation of both natural and legal persons from the moment they register at the Tax Administration Service (SAT). This institution establishes the rights and obligations of each company, according to their financial performance.
Also read: The importance of the fiscal code for the country’s economic activity
Tax regime for natural and legal persons:
For tax purposes, it is key to determine the type of taxpayer at issue, whether it is a natural person or a legal person. The requisites, as well as a tax treatment received, will depend on this distinction.
A tax regime allows you to enjoy benefits, issue receipts, and generate bimonthly revenue and expense statements. Natural persons (individuals who have jobs or carry out other economic activities) have rights and obligations. Their tax regime is specifically sorted based on the activities they perform and their income levels.
As an entrepreneur, it is also important to have a clear and objective understanding of any activities you are interested in to start a project. Monthly and annual revenue estimations are key to identify the tax regime you should enroll in.
Legal persons are formed by groups of natural persons who share a common goal. Although they are usually non-human, they are legally capable of having rights and obligations.
Watch our video: What is the Taxpayer Registry Code (RFC)?
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