RESICO: Who Qualifies and What You Get
Understand the requirements for Mexico's simplified tax regime, including income limits and the rules regarding expense deductions.
RESICO is a simplified tax regime designed to help individuals manage their fiscal obligations more easily.
Who it's for
This regime is intended for individuals who meet specific income requirements. To qualify, you must earn an annual income that is below 3.5 million MXN. This simplified structure is meant to provide a more manageable way for people within this income bracket to handle their tax responsibilities.
What you get
By using this regime, you benefit from a simplified approach to your tax obligations. The primary feature is a streamlined process for managing your status. While the regime offers a simpler way to operate, you must ensure you meet the monthly filing requirements set by the issuing government body to maintain your standing.
What it costs you
There is no specified monetary fee to enroll in this regime. The main cost is the administrative effort required to keep your records in order. You must dedicate time each month to ensure your filings are handled correctly and submitted according to the official schedule to avoid potential issues with the authorities.
The catch to know
The most important thing to understand before choosing this regime is how it treats your business costs. While the regime is called "simplified," it comes with a major trade-off: you cannot deduct expenses. In other tax systems, you can often subtract your business costs from your total income to lower the amount of tax you owe, but under RESICO, this is not permitted.
How to apply
- Verify that your total annual income does not exceed the 3.5 million MXN limit.
- Prepare to manage your records without the ability to claim expense deductions.
- Check the official portal for the necessary registration steps and filing schedules.