Is there a MAXIMUM amount for bank transfers in Mexico? Expert says the following

Bank transfers are one of the popular processes in terms of digital payments, but did you know that the law sets a limit? Have you been engaging in bad practices all this time? We’ll tell you.

Just as you must be careful with the concepts that are used when making payments or money movements, you also have to be careful with the amount you transfer.

According to the Tax Administration Service Law, the SAT can ask banks for accounts, even if there are no reasons to doubt the origin of the funds.

For its part, the Income Law requires banks to notify cash deposits on a monthly basis instead of annually, so the SAT will have precise control of taxes on the amounts received or deposited.

In an interview for MILENIO, Denisse del Castillo, founding partner of DCR Contadores and creator of the podcast ‘Y un día emprendi’, explained the powers of the SAT and the bank movements that you must take care of.

What is the limit for transfers?

Despite a widespread idea about the limit for transfers, this is a lie, since there is no delimitation, but this is not an open letter for you to make transfers without measure.

“What happens with bank transfers is that there is no limit, it is not like ‘if you deposit less than so much the SAT will never look at you’. What happens in Mexico is that the bank, if the SAT asks for it, gives the information and it is also true that the bank sends tax returns for deposits if together they add up to 15 thousand pesos in a month,” said del Castillo.
However, the specialist emphasized that if you have a business or offer a service that generates income you must register and declare before the SAT.

“People have this idea that if I transfer less than 15 thousand pesos nothing happens, but the reality is that there are no limits in tax laws, if it is an income that generates a tax payment – I offer a service or a product – the SAT will tell you, from the moment you generate a profit there is a tax payment,” he added. For its part, Article 2 of the Tax Administration Service Law states that:

“The Tax Administration Service has the responsibility of applying the tax and customs legislation so that individuals and corporations contribute proportionally and equitably to public spending, of supervising taxpayers so that they comply with tax and customs provisions, of facilitating and encouraging voluntary compliance with said provisions, and of generating and providing the information necessary for the design and evaluation of tax policy.

“The Tax Administration Service will implement programs and projects to reduce its operating cost per peso collected and the cost of compliance with obligations by taxpayers.”

What type of deposits or money received can be reported to the SAT?

Any amount in cash paid at the bank counter, ATMs and checks that need to be cashed at the cashier.

However, electronic transfers do not fall into this situation, as they are not strictly cash transactions.

Source: milenio