A leading source for news and analysis about Mexico and the U.S.-Mexican border.

Tuesday, Sept. 9, 2014

Churches plan to seek injunction against having to file electronic statements with Mexican tax agency

        More than 700 church groups in Baja California are planning to file for an injunction (amparo) against having to comply with new regulations requiring churches to file electronic statements with the Mexican tax agency (Sistema Administrativo Tributatario, or SAT) on a periodic basis, El Mexicano newspaper reported.

         Although the paper reported that the agency was going to tax donations and handouts (limosnas), the agency has said this is not the case, and that churches are only obligated to report an itemized breakdown of expenses and income, including the source of donations where possible, just like all other registered organizations in Mexico. While the new regulations were to go into force Sept. 1, the deadline has been moved to 2015. The agency did say church income and donations would be taxable if they were redistributed among the congregation.

         Church officials say the reporting requirements are placing an unnecessary burden on churches.

         Some exceptions to the reporting requirements are being made for churches in tiny communities.

Front-page story, El Mexicano (PDF). Jump.
SAT PDF explaining the new regulations.