Choosing the appropriate tax regime is key to the proper operation of any business. Each type of regime has specific requirements, tax obligations, and benefits that can impact a company's profitability. In this article, we explain the main types of tax regimes and help you determine which one is the most convenient according to your needs.

What is a tax regime?

The tax regime is the set of rules and tax obligations that a natural or legal person must comply with according to their economic activity. It determines how taxes should be paid and what applicable tax benefits exist.

Main types of tax regimes

Below, we explain the main tax regimes so you can identify which one best suits your business:

1. Simplified Trust Regime (RESICO)

Designed for individuals with annual income of up to 3.5 million pesos and some legal entities. Its main advantage is the reduced and simplified tax payment.

Example: A freelancer who offers graphic design and invoices less than 3.5 million a year can benefit from this regime with low tax rates.

2. Tax Incorporation Regime (RIF)

Designed for small businesses and entrepreneurs with annual income of up to 2 million pesos. Offers reductions in tax payment during the first 10 years of operation.

Example: A grocery store owner can register in the RIF and pay less tax during their initial years of activity.

3. Business and Professional Activities Regime

Applicable to individuals who offer professional services or carry out commercial activities without income limits. They must issue invoices and pay VAT, income tax, and other taxes based on their earnings.

Example: An independent lawyer providing legal advice and issuing invoices for their services must file under this regime.

4. General Regime for Legal Entities

Designed for companies that generate income through commercial, industrial, or service activities. Their tax obligations include paying income tax, VAT, and withholding taxes on employees.

Example: A digital marketing agency with several employees and corporate clients operates under this regime.

How to register with the SAT and choose your tax regime

To register with the SAT and choose your tax regime, follow these steps:

1. Obtain your RFC: Go to the SAT portal and generate your Federal Taxpayers Registry (RFC) with your CURP.

2. Schedule an appointment: In some cases, it is necessary to go to a SAT office to complete the procedure.

3. Fill out the application: Indicate your economic activity and the type of regime you wish to register.

4. Submit the documentation: Present official identification, proof of residence, and, if applicable, the incorporation deed of the company.

5. Download your e.signature and password: They are essential for carrying out digital procedures.

6. Register your activity and issue invoices: Once registered, you must meet your tax obligations and submit periodic declarations.

How to choose the best tax regime for your business

To determine which tax regime is the most suitable for your business, follow these steps:

1. Define your economic activity: Identify whether you will offer professional services, sell products, or conduct commercial activities. Each regime has restrictions on who can register.

2. Calculate your estimated income: Some regimes, such as the RIF and RESICO, have billing limits. If you expect to generate more income than allowed, consider more flexible options like the General Regime for Legal Entities.

3. Evaluate your tax obligations: Determine if you can meet the requirements for billing, submitting monthly declarations, and paying taxes. Regimes like RESICO simplify these processes, while others require more detailed accounting control.

4. Review tax benefits: Some regimes offer reduced tax rates or incentives during the first years of operation. For example, the RIF allows discounts on tax payments for 10 years.

5. Consult with an accountant: A specialist can help you choose the most convenient regime according to your tax situation and avoid mistakes that could lead to fines or problems with the SAT.

6. Consider your future growth: If you plan to expand your business or hire employees, you may need to change regimes over time. Make sure to choose an option that allows you to grow without tax complications.

If you still have doubts about which to choose, at Cretia we help you manage the tax part of your business simply and efficiently.

Conclusion

Selecting the correct tax regime can make a difference in your business's financial health. Analyze your income, type of activity, and tax obligations before making a decision. Remember that at Cretia you can find tools to simplify your tax management and comply with your obligations without complications.