Activities in which the SAT presumes that there may be income
The article indicates that among the activities that the SAT presumes that there may be cumulative income, and therefore demand the payment of the corresponding tax, among others, are the following:
- Bank deposits that do not match tax returns, whether monthly or annually.
- Loans between companies that are related parties, that do not have money deliveries backed through mutual or checking account contracts, correctly formalized, and in which interest is not paid at market rates.
- Deposits of money in financial institutions in the name of people who are not registered with the SAT.
- Income from inheritances, loans, or donations that individually or as a whole exceed, within the same fiscal year, the amount of 600,000 pesos, and that are not declared in the times and forms established by the SAT. This only applies to natural persons and its legal basis is Article 90, second paragraph, of the Income Tax Law.
- Capital contributions or shareholder loans that are not legally documented in accordance with the law.
- Mutual contracts between relatives or friends are transferred via bank, or through the use of credit or debit cards, and the origin of the income is not documented or reliably proven.
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Book interest income and interest income (bookkeeping with examples)
Interest income is the compensation that an accounting unit has earned during an accounting period regarding long-term and short-term claims on natural and legal persons.
An accounting unit can receive interest income on accounts receivable, bonds, certificates, bank accounts, tax accounts, loans to employees, and other claims on external natural and legal persons.
According to IFRS, short-term and long-term receivables must be valued at amortized cost according to the effective interest method and this means that an accounting unit must take into account accrued interest that has not yet been paid when it comes to reporting interest income.
Interest income is the compensation for interest that has been earned on receivables during an accounting period, regardless of when the interest is paid. Interest is normally paid in arrears, which is why there is normally a need to accrue interest income in order to be able to report the correct interest income during an accounting period.
Classification
Accrued interest is reported by posting an asset of accrued interest on the balance sheet and an interest income in the income statement.
Interest income on long-term receivables that have been booked as financial fixed assets is reported in account group 82 and interest income on short-term receivables is reported in account group 83. Account group 82 –
Income from other financial fixed assets
Account group 83 – Other interest income and similar income items
Recognition
Interest income is recognized in the income statement when the return has been earned if it is probable that financial benefits will accrue to the accounting unit and if the financial income can be measured reliably. Accrued interest calculated according to the effective interest method is reported in the income statement in the accounting period in which the interest income has arisen.
Side-ordered register and reconciliation
An accounting unit should register short-term and long-term receivables in a side-ordered register to the bookkeeper in order to have information about each individual receivable. Reconciliations are made between reports from the paginated register and account for short-term and long-term receivables in the bookkeeping according to a printout from the general ledger.
Valuation
Interest income is valued at the nominal amount in the accounting currency that has been paid and is expected to be paid. An interest income is valued at the fair value of interest earned during an accounting period based on the value of interest income.
According to IFRS, long-term and short-term receivables must be valued at amortized cost according to the effective interest method, and interest income can consist of both paid interest and accrued interest.
VAT and income declaration
There is no VAT (0%) on interest income. Interest income is normally taxable as income in the income tax return, regardless of whether the interest is accrued or realized. However, interest income on the tax account is not taxable.
In limited companies and economic associations, interest income is always recorded as income from business activities. An individual entrepreneur must take interest income from interest-bearing instruments that have no connection with the business as income from capital. In trading companies and limited partnerships, interest income from interest-bearing instruments that have no connection with the business is taken up for taxation by the partners.