Do you know the deductibility rules for travel expenses in Mexico?
If you are within the percentage of the population that is not aware of this topic, we invite you to continue reading.
Travel expenses represent a significant outlay for any company. Which? How much? How?
In this section, we will talk about the most important thing you should know about the What, How Much and How, of travel expenses, something like an ABC to follow.
What are the deductible travel expenses in Mexico?
Deductible travel expenses in Mexico are:
· Transportation (plane tickets, bus, gasoline among others)
· Car rental
How much can be deducted from these expenses?
Some of the concepts mentioned above can be considered deductible, there are others which have a limit amount to be deducted that are important to consider.
How do you make them deductible?
It would be easy to say that these trips need to be supported by a business motive, as long as the beneficiary of the expenses has an employment relationship with the company/taxpayer and that the beneficiary collects the necessary tax receipts for each expense incurred.
However, the reality is that the authority in the income tax law dictates a series of requirements or conditions necessary to be able to deduct the expense. In the following table, we explain these requirements:
The above, together with the limits mentioned in the section on How much must be taken into account equally to present an expense as a deductible to the authority.
Optimal control of travel expenses and good practice at the time of deducting them will ensure great savings for your company, besides avoiding headaches when recording these expenses in your accounting.
It is possible to speed up the calculation of deductibility and registration of these travel expenses through technology and thus allow your finance and accounting area to generate reports that help you make important decisions for your business and reduce expenses. For more information contact us.