The difficulties of the Proof of Tax Status

The procedure has its origin in the 2022 tax amendment and the version of the Digital Tax Receipt online (CFDI, for its acronym in Spanish) 4.0, which comprises among other changes, the obligation of including the individual’s fiscal address postal code of whom the CFDI is issued for (receiver), thus the amendment affected more than 47.18 million taxpayers under the wage and salary regimen, according to the first quarter of 2022 Tax Collection and Management Report.

The goal of the CFDI 4.0 is that the authority has more complete information, in order to facilitate the filing in of the annual declarations with pre-filled information and the indirect audit to individuals under the wage and salary regimen which are captive taxpayers who pay through the income tax deduction to their salary, it is worth mentioning that the updating of their tax information will not raise an increase in the collection from the authority, it will only give more accurate information thereof.

To this end, the individuals started the procedure to get their proof of tax status, in order to provide the document to the employer and that he/she in turn, have the correct information to issue the CFDI 4.0, since in the case of a mismatch with the recorded data at the SAT, the payroll would not be deductible.

Last June 8th, the SAT through a communication specified that, in the case of a salary CFDI, the employees may not deliver to their employers the proof of tax status and that it would be enough providing the correct tax data, however, many employees do not know what fiscal address is registered in their Federal Taxpayers Registration (RFC, for its acronym in Spanish), since formerly the employer made the registration as part of his/her tax obligations y and used his/her own fiscal address.

On July 4th, the Chief of SAT, Raquel Buenrostro clarified that the dependence never directly requested the companies for this document and some big companies started to demand the proof of tax status, this situation occurred to the point of conditioning the salary payment to whom did not deliver this document, thus generating panic in the salaried sector, but it is worth mentioning that the Federal Labor Law (LFT, for its acronym in Spanish) establishes that the right of the employers to receive a remuneration is inalienable and the obligation of the employer of paying the salary is not avoided except for certain situations provided in the same law.

The tax authority gave an extended term up to December 31st, 2022 to start the enforcement of the CFDI 4.0, which gives relief to workers seeking to obtain the proof of tax status.

Now then, a suitable planning by the SAT in order to obtain the complete information from the CFDI 4.0, and allowing to fulfill the requirement with the employers without risking the payroll deductibility, would be allowing them to directly carry out the procedure, possibly through an application which allows to update the employees’ information massively and thus avoiding the employees to waste their time in long lines.

Thus, applications as the SAT ID, have helped to supplement this requirement, but it lacks a suitable circulation and much less has given confidence, such that at present the salaried sector has no interest in updating the information for not being in the radar of the SAT, as they can be exposed to some kind of audit.