SAT clarifies rules on bank transfers and tax reporting in Mexico

The Mexican Tax Administration Service (SAT) clarifies that there is no specific maximum amount for bank transfers that automatically triggers tax obligations or audits. Instead, the authority focuses on the congruence between a taxpayer's reported income and their actual financial movements, such as bank deposits, expenditures, and asset acquisitions.

Financial institutions are required to report cash deposits to the SAT if the accumulated monthly amount exceeds 15,000 pesos within a single institution. While electronic transfers via systems like SPEI do not fall under this specific cash reporting threshold, they remain identifiable and can be subject to review if they do not align with a taxpayer's declared fiscal situation. Under Article 91 of the Income Tax Law, a fiscal discrepancy occurs when an individual's annual expenditures exceed their reported or expected income.