Employees obliged to file an annual tax return 2021
Employees are considered to have a temporary employment contract or relationship when its termination is fixed by objective conditions, such as the expiration of a term, the performance of a task, etc. Otherwise, the contract or employment relationship is considered to be indefinite.
To determine the salaries of salaried employees, the Continuous Sample of Working Lives uses the payments declared in key A of form 190 “Annual summary of withholdings and payments on account of Personal Income Tax on income from work, certain economic activities, prizes and certain income allocations” of the Tax Agency. This code includes all monetary or in-kind payments made by the reporting person or entity as earned income. This remuneration also includes travel allowances and tax-exempt travel expenses for work purposes. It should also be clarified that this refers to gross salary payments, i.e., before taxes, and also includes the amounts corresponding to payments in kind.
How to know if I have to declare taxes
Article 3 of Decree 2530/1970, of August 20, 1970, which regulates the Special Social Security Regime for self-employed workers (RETA), determines that the self-employed worker or freelance worker who resides and normally carries out his activity in the national territory is included in this Regime. This apparently applies to all non-salaried workers. Now, is there any exemption that allows working without having to contribute to this regime? And, if so, what do I have to do to benefit from it?
There is a widespread belief that if the worker’s income does not reach the minimum wage, it is not necessary to register as a self-employed worker with the Social Security. However, this is not entirely true. Article 1.1 of Law 20/2007, of July 11, 2007, states that the Self-Employment Statute applies to any person who carries out his or her professional work or gainful activity without being under the direction of a third party. However, it does not explicitly state that there is any limit as to the minimum amount of income to be earned. In other words, a priori, the law applies to all self-employed workers, regardless of the total amount of their income.
Wage earners obliged to file annual income tax return 2020
This item is regulated by the Income Tax Law in Chapter I, Article 94, which indicates the income from the rendering of a subordinated personal service, salaries and other benefits derived from an employment relationship.
Extraordinary time. According to the Federal Labor Law, workers who receive the minimum salary will be exempted from the overtime allowed, which is 3 hours per day without exceeding 9 hours per week.
Savings fund. When established by the companies and granted on a general basis. In addition, the amount contributed by the employer must be equal to the amount contributed by the employee and the employer’s contribution must not exceed 13% of the employee’s salary.
Social Welfare. For this type of benefits, for example, food vouchers, disability allowances, educational scholarships for employees or their children, day care centers, cultural and sports activities.
Retirements, pensions, retirement assets, life annuities or other forms of retirement. The daily amount that does not exceed 15 times the value of the UMA, even if 2 or more pensions or retirements are received.
How much should I earn to file taxes in mexico 2021
When an individual, in addition to receiving income from a salary, retirement or pension and exercises an economic activity independently (PFAL), he/she must declare the exempt amount for those concepts (salary, retirement or pension) that he/she has enjoyed in the respective tax period.
In turn, this salaried employee, retiree or pensioner is a taxpayer as an individual with lucrative activity (PFA) and must file the income tax return through form D-101, where he/she declares his/her income minus costs and expenses, thus obtaining the net income.
And being that as a salaried employee, retiree or pensioner he enjoyed an annual accumulated amount higher than the exempt amount determined for an individual with lucrative activity, the above table is “transformed” as follows:
In turn this salaried employee, retiree or pensioner is a taxpayer as an individual with gainful activity (PFA) and must file the income tax return (form D-101), where he declares all his income minus costs and expenses, thus obtaining the net income.