The main objective of a Simplified Shares Company (SAS) since its establishment in Mexican legislation, is to get SMEs out of informality in that sense, the growth of this type of companies, although it is true it has been slow, it is also the fact that in the last year it has become an ideal and quick tool to establish a Company and, therefore, continue with the growth and expansion of the business in question, thus supporting formality.
The only requirement is that each and every one of the partners must have their signature and nothing else.
But what are the tax advantages?
One of the main advantages of the constitution of a S.A.S. It is the legal support of the contributions made by the partners when starting a project, as well as the patrimonial protection of the shareholders and that they only respond until the payment of their contributions represented in shares.
Now, if you signed up as of May 4, 2017, the tax scheme will be based on cash flow. This method allows you to pay the annual Income Tax, accumulating only the income (earnings) and reducing the deductions (expenses and costs) made for the period in question.
In addition, it frees the user from submitting the Information Statement on Operations with Third Parties (which consists of providing the SAT with information on your operations with your suppliers on a monthly basis). If you want to modify your tax scheme, it is necessary to present a clarification case in the SAT Portal, in the My Portal section, during the month following the one in which you have registered.
But on the other hand, it is a Simplified Stock Company registered before May 4, 2017, it is considered that you opted to use the taxation scheme according to cash flow from January 1, 2017. This scheme allows you to pay the ISR accumulating only the income and reducing the deductions actually made for the period in question.
In addition, it frees you from submitting the Information Statement of Operations with Third Parties and you can use the My accounting tool, which facilitates the calculation and presentation of your tax return. If you want to modify your tax scheme, it is necessary to file a clarification case on the SAT Portal, in the My Portal section, no later than June 15, 2017.
If you continue in this tax scheme, in the provisional payment of May 2017 you must accumulate the income of January, February, March and April, and reduce the provisional payments made in those months.
It should be noted that it also has other benefits among them: it allows taxation on activities that require professional title, it is required to decree dividends to have profits, notary fees are not required, sales to the general public are taxed for VAT purposes but can be requested taxes devolution.
The declarations to the SAT are monthly, you are obliged to keep your accounting and present an annual declaration.
In addition, you can use the SAT application “My accounting”, which is used to determine provisional payments and the possibility of being exempted from filing the DIOT and electronic accounting, facilitating the calculation and presentation of the tax return.
Similarly, among the advantages that this type of companies have in the tax aspect is to pay taxes in Title VII “Of tax incentives” in Chapter VIII of the LISR “Of the option of accumulation of income of legal entities”, which highlights the accumulation of income based on cash flow, and instead of cost of sales, the purchase account is kept.
If you have any questions about how to set up your Simplified Shares Company or require specialized advice, do not hesitate to contact us and our team will provide you with specialized advice according to your needs.
Gloria Ponce de León & Hernández