What main news brings the income statement for 2015?

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It’s here. On April 6, a new settlement period for the income statement opens and this year with many changes. In theory, a large part of taxpayers will pay less taxes. They already began to notice it in their payrolls at the beginning of 2015 and with the following adjustment of July of that same year, but now it is when it is necessary to compare what was paid with the withholdings with all the income and deductions, and in this year, there are many novelties .

All these changes came into force in 2015, but many of them have gone unnoticed or not applied – as it happens with exempt minimums – until the time comes to confirm the draft or to use the help program (FATHER) that this year will generate more doubts than in previous years.

Talking about all the news would take us to fill many pages. Therefore, we point out the most important ones, due to their economic relevance or because they affect all or a large part of the taxpayers:

Deductible expenses and reduction for obtaining work income

Deductible expenses and reduction for obtaining work income

This year, the general reduction of 2,652 euros disappears, due to the achievement of labor income, whatever the net positive return, and whatever the amount of “other income” received. But a new deductible expense of 2,000 euros is approved for other expenses. This expense will be increased by another 2,000 euros annually, in the case of unemployed people who accept a new job that requires a change of residence, as well as an increase in the amount of 3,500 euros or 7,750 euros per year for the case of disabled active workers according to the degrees of their disability.

The dividend exemption is deleted

The dividend exemption is deleted

Dividends and participations in profits obtained by having shares in any type of entity were exempt with a limit of 1,500 euros per year. This exemption is suppressed since 2015. Dividends are already subject to a withholding when you collect it, so the change is that if last year you were paid back these advance payments, this year will not be like that.

Income from work in kind

Everything that your company gives you in kind, such as restaurant checks or life insurance taxed as work income. There are only two exceptions:

  • The amounts allocated to the updating, training or recycling of the personnel employed, when they are required by the development of their activities or the characteristics of the jobs.
  • The premiums or fees paid by the company under an accident contract or civil liability insurance contract.

Important changes in rental agreements

For the owner, a single reduction of 60% of the net declared return derived from the lease of real estate intended for housing is fixed. Until last year there was a 100% reduction when you did it to under 30s.

For the one who rents, the deduction for rent is lost for all contracts signed as of January 1, 2015, that is, it is fiscally equated to the purchase of a habitual residence that lost the deduction on January 1, 2013.

Modification of reduction limits for contributions to social security systems

The maximum limit of reduction in contributions to social security systems has been modified. Thus, the lower of the following amounts will be applied as a reduction:

30% of the sum of the net income from work and economic activities received individually during the year. The increase of this limit for taxpayers older than 50 years, which fixed it at 50%, is eliminated.

8,000 euros per year for all taxpayers. The limit previously set at 10,000 euros is modified, or 12,500 for those over 50 years old.

Contributions to spousal social security systems are also modified. This limit becomes 2,500 euros per year, instead of the 2,000 existing in the previous version of the Law.

Minimum of the taxpayer

Minimum of the taxpayer

The taxpayer’s minimum is raised. Moving from the amount of 5,151 to 5,550 euros. Likewise, the amounts are raised in reference to the age of the taxpayer. Thus, when the taxpayer is over 65 years of age, the amount of the minimum will be increased by 1,150 euros per year. Moving from 6,069 euros to 6,700 euros with the reform.

When the taxpayer is over 75 years of age, the amount of the minimum will be increased additionally by 1,400 euros per year. Moving from 7,191 to 8,100 euros with the reform.

The minimum is also raised by descendants. For the first child goes from 1,836 euros to 2,400 euros. For the second goes from 2,040 euros to 2,700 euros, the third from 3,672 euros to 4,000 euros, and the fourth and following from 4,182 euros to 4,500 euros. When the descendant is less than three years, the amount will increase by 2,800 euros per year (before the reform was 2,244 euros).

5 reasons to invest in real estate

Related imageIn 2015, the Investigator’s Pulse Global survey, conducted by BlackRock, indicated that only 16% of Mexicans invests in real estate. You may wonder then, why do some people insist that it is a good investment?

Investments in real estate are very reliable because they generate tangible value and competitive returns. According to data from the newspaper Reforma, in 2017, the price of housing, at least in Mexico City, doubled its value compared to the previous 5 years. This represents an annual growth rate of 15%, which exceeds inflation, GDP and reference rates (an indicator that reflects part of the country’s economic conditions); in a considerable way.

Several analysts say that this growth is due to a real estate bubble; however, there are many indicators that allow us to affirm that the real estate market is attractive and stable. This is due, among other factors, to the concentration of economic activities, the price of land, the legal aspects of construction, the guarantees of mortgage loans and the supply and demand of real estate; factors why investing in real estate may be a good idea. Here we talk about each one of them.

1. Concentration of economic activities

Although the economy is growing at a low rate, estimated at 2.3%, large cities have an important economic development, which implies some stability for companies and employees, who remain in the same places of work.

For example, Mexico City has 17.1 million inhabitants, but it is estimated that, every day, more than two million people travel from the neighboring states to the city to work or study. This represents a kind of daily migration to the city, which, in turn, motivates a definitive migration.

For its part, the Conapo has registered that, in the last 10 years, at least 2 million national migrants and nearly 100 thousand foreigners have settled in Mexico City. It is expected that this figure will continue to grow in the near future and, therefore, more places will be required to establish themselves.

2. The price of landRelated image

The price of land increases to a greater extent in urban centers where there is a shortage of space for construction. The land available is not only quoted in square meters, but in cubic meters, that is, the price of the land is determined depending on the number of floors that can be built. For example, in Mexico City, in the areas near Paseo de la Reforma, the prices of the departments reach figures of up to 100 thousand pesos per square meter.

3. Legal aspects of construction

In many parts of our country, building regulations indicate that buildings must have the highest standards of quality and safety, due to the seismic risk. As a result, more time is required to carry out procedures, planning and construction; better materials and better trained workforce are needed; which increases the value of the house.

4. Mortgage loans: real estate bubble control

Image result for mortgageAfter the various crises caused by mortgage loans, especially in the United States, the regulations of the Mexican financial system and the financial entities themselves have established stricter control measures. When granting a mortgage loan, banks are obliged to provide important economic guarantees to the Bank of Mexico to guarantee the liquidity and stability of the system.

According to Leopoldo Riquelme, marketing and business strategist, we are far from falling into a mortgage bubble, like the one that happened in 2008 in the United States, which originated, among other causes, due to the granting of NINJA loans (No Income , No Job, No Assets). That is, people without income could request more than one mortgage at the same time. We are also far from seeing in our stock market “junk bonds”, which transfer the risk of mortgage default from one financial institution to another.

5. Law of supply and demand

It is evident that, for example, in Mexico City there will be a high demand for housing for a long time. We can see the incessant construction of real estate developments that are even sold in pre-sale, that is, before finishing its construction.

On the other hand, after the September 2017 earthquakes, Alejandro Kuri, president of the Mexican Association of Real Estate Professionals (AMPI), affirmed that the sale and rent prices were maintained after an immediate demand was generated for more than 10 thousand homes. He also assured that less than 1% of real estate agents were affected and the sector will have a growth of 4%, which has been maintained for the last 4 years. This stable growth is an indicator of a healthy market and far from a mortgage crisis.

Due to these 5 reasons, in 2018 we will have a solid property market in which we can invest and obtain very good returns. If you think that to invest in real estate you need large sums of capital, do not worry, in our next articles, we will show you that there are real estate investment options for all kinds of budgets.


Image result for industrial competitivenessThe Ministry of Industry, Energy and Tourism has published today in the Official State Gazette an order modifying the basis for granting financial support to industrial investment within the framework of the public policy of reindustrialization and promotion of competitiveness industrial.

The purpose of the financing is to favor the development of strategic companies and projects, stimulating innovative industrial initiatives that contribute to the generation of employment and the increase of exports. This financing is granted through two calls, REINDUSTRIALIZATION AND PROMOTION OF INDUSTRIAL COMPETITIVENESS, which you can learn more in detail here.

Order IET / 619/2014, of April 11, which establishes the bases of the calls is modified in the following terms:

Article 9.2: “If the date of constitution of the applicant is the year in which the call is made or the previous one, the amount of the loan to be granted may not exceed three times its own funds. This limit is set five times to the applicant’s own funds ”
The own funds will be calculated as stated in article 19.4

Article 19.3 and 19.4 are also modified. In the case of requests with the same score, the application that has been presented before will have preference. The weights for companies constituted in the year of the call, or the immediately previous one, also vary.