The Tax Administration Service (SAT) requires all individuals and legal entities that carry out economic activities to have a registered tax domicile.
This is dictated by Article 10 of the Federal Tax Code, therefore, it is a mandatory requirement.
But doing so is in your best interest for two main reasons:
- Have all your tax information in order
- Receive notifications and communications from the authority.
What is considered a "tax domicile" for legal entities?
According to the law, the tax domicile is a physical place where a taxpayer can be located.
The establishments that can be registered with the SAT as tax domiciles for legal entities are:
- The premises housing the main administration of the business when residing in the country.
- In the case of foreign residents, the establishment where the main administration of the business in the country is located.
It is important to emphasize that, since it is a legal obligation, failure to register a tax domicile with the tax authorities may result in revisions and fines ranging from $3,870.00 to $11,600.00.
This can also happen if you change your tax domicile and do not notify the SAT.
How do I change my tax domicile before the SAT?
The procedure can be carried out in two ways: online or in person.
Online processing
- Enter the corresponding SAT portal
- Access with your RFC and password
- Modify all the data of your new address
- Sign the form with your e.signature
- You can print the acknowledgement of the update
It must be taken into account that the SAT has some restrictions for the online process:
"Individuals who are in suspension due to death, as well as those who have not provided sufficient information related to their identity, domicile and in general about their tax situation, cannot make the change of domicile before the SAT through the Internet."
If this is your case, you must carry out the procedure in person.
Face-to-face processing
- Schedule an appointment by phone or through the SAT website.
- When you go to your appointment at the SAT offices, consider bringing the following documents: proof of new tax domicile, valid official identification and power of attorney.
- Deliver the documentation
- Sign the application
- Keep the acknowledgement of the update in a safe place.
After the process is completed, the SAT takes about 5 days to give you a response.
If the application is not approved, you will have to go through the process again. On the other hand, if it is approved, the acknowledgement of the update will serve as proof of the change of tax domicile.
Remember that it is very important to have all your tax information in order, so you will avoid "surprises" and unnecessary fines.
Finally, we invite you to keep up to date with the world of payroll through our magazine-blog.
See you next time!
