The tax year for individuals must coincide with the calendar year. Unless specifically exempted by law, every individual resident in Mexico and in receipt of taxable income must file an annual tax return between 1 February and 30 April of the year following that in which the income arose. Exempt individuals include employees whose salary income arises exclusively from one employer and those whose final taxes have already been paid by way of withholding at source.

Taxpayers generally assess their own income tax when preparing their tax returns. Assessments can be made by the tax authorities in the same circumstances as those described for companies (see "CORPORATE ASSESSMENTS AND PAYMENTS"). Individuals whose disbursements exceed the income reported in a calendar year may be regarded as having met the excess out of unreported income, unless the source of the excess can be proved. Individuals who earn professional fees or dividends or are engaged in business activities and whose expenses are higher than reported revenues in a calendar year will be penalized for tax fraud if they cannot justify the discrepancy.

Many items of an individual's income are subject to advance provisional payments or to withholding at source. For example, tax is generally withheld from employment income at source and credited against the final tax liability. When provisional payments are required, they are due on the seventeenth of April, July, October, and January. For each type of income subject to advance payments, the individual must file a provisional return at the time when the advance payment of tax is made. Any balance of tax due is paid when the annual return is submitted. This balance may be paid in up to six equal consecutive monthly payments, at an interest rate approved annually by Congress.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

For further information contact Deirdre Silberstein, Deloitte & Touche, Washington on +1 202 955 4000 or enter a text search 'Deloitte & Touche' and 'Business Monitor'.