The Tax Administration Service (SAT) applies at the end of the year a rate corresponding to total income, without distinguishing between different types of income. This means that, although in some cases less income tax (ISR) may be withheld than necessary, the total accumulated may place the taxpayer in a higher rate, resulting in a greater payment. It is important to know the effective ISR rate paid on each type of income to avoid surprises at the time of the annual declaration.
In this analogy of a "fiscal taquiza," the different "salsas" represent income levels, where a mild salsa equates to low income and a spicy salsa to high income. Thus, the SAT calculates the average spiciness of all the "salsas" consumed during the year and charges accordingly. If the taxpayer received less withholdings than necessary, they will have to cover the difference; if they received excessive withholdings, they may have a balance in their favor.
On the other hand, the different types of income also influence the amount of ISR withheld. Salaries, for example, are subject to a progressive rate, meaning that higher incomes correspond to a higher tax rate. In contrast, income from fees often has a lower withholding, resulting in less spiciness, that is, a lower tax rate.
The calculation of effective ISR per month can vary depending on the type of income. For instance, in the case of fees, the withholding may be lower, while in salaries the situation is usually different. It is key to understand this dynamic to make appropriate financial decisions throughout the year, such as making personal deductions or planning provisional payments.
Finally, for income such as bank interest or professional services, the ISR withheld may not be representative of the actual tax to be paid, as it is based on fixed percentages and not on the total actually owed. This process can result in balances in favor or against when filing the annual declaration, depending on various factors such as interest rates or inflation.
