What are the travel expenses that can be deducted in the SAT 2020?
Many times the activities of the company require that one or more of its employees carry out their work outside the geographical area of their offices. In such a situation, several times, companies give their workers a benefit for this purpose: per diem. The good news is that certain business travel expenses are tax deductible; although it should be clarified that up to a limit established by the Income Tax Law.
Thus, in article 28, section V, of the ISR Law it is stipulated that travel expenses or per diem used to pay for accommodation, food, car rental, gasoline or transportation to travel are deductible. Likewise, it is decreed in the same Law that only expenses strictly essential for the taxpayer’s business activity can be deductible, so that the Pleasure travel allowances will not be included in the return annual as tax exempt.
How much can be deducted in travel expenses?
In order to present travel expenses as deductibles, it is necessary that the person has a business activity, that is, provision of a professional service, service or commercialization of goods. In case it is an employee, it must be on the company’s payroll.
It is also important to note that only the vIatics who are paid with bank cards, debit or credit, are subject to deduction since the legislation does not admit payments in cash.
Thus, the LISR establishes in article 28, the tax limits to be deducted, which are:
|Concept||Limit in national territory||Limit abroad||Requirements|
|Transport||There are no limits since it is not possible to control the rates imposed by the airlines or buses||It must be accompanied by the receipt that covers the expense.|
|Lodging||$ 3,850 pesos daily||It must be accompanied by the proof that covers the transport.|
|Feeding||$ 750 pesos per day for each beneficiary||$ 1,500 pesos per day for each beneficiary||It must be accompanied by the receipt that covers the expense|
|When accompanied only with transport documentation, payment must be made with the credit card of the person making the trip.|
|Temporary use or enjoyment of automobiles||$ 850 pesos daily||$ 850 pesos daily||It must be accompanied by the proof that covers the lodging or transportation|
|Travel expenses for seminars or conventions||The recovery fee indicated in the tax receipt is deductible, if it is not indicated, only an amount equivalent to the limit established for food expenses will be deductible.|
|Other requirements||CFDI tax receipt||Supporting documentation|
|People must have a working relationship with the taxpayer or provide professional services.|
Source: Faculty of Accounting and Administration, UNAM and Colegio de Contadores Públicos de México, AC
It should be noted that for the purposes of the deduction, the expenses related to the employee’s car must be carried out in national territory and be backed by the CFDI issued in the name of the taxpayer, which must be distinguished from the CFDI that certify the expenses incurred in the vehicles owned by the latter. Additionally, the tax receipt that covers the accommodation of the person who drives the vehicle must be included.
What are the requirements to deduct?
Mainly, in order to deduct business travel expenses, the following requirements must be met:
- That he trip is made for a purely business purpose and by people who work directly for the company or have a current contract.
- That destiny be to one minimum distance of 50 kilometers from the tax domicile of your business.
- Likewise, present vouchers that comply with the tax requirements of the SAT, if they are carried out within the country, or clear and complete supporting documentation if they are carried out abroad. This also helps to manage per diem control in a better way.
Finally, it is important to note that travel expenses are only deductible for the employer or legal entity, plus not for the employee, since it does not constitute an expense for the worker.