Impact | Positive
CIVICUS rating | Open
On December 30, 2021, in a resolution published in the Official Journal of the Federation, the government announced the new tax regulations for civil organizations. Among its most important aspects is the possibility to deduct taxes on donations.
Organizations that intend to benefit from this regulation must obtain permission from the Tax Administration Service (SAT in Spanish). At the end of the fiscal year, in order to continue receiving this benefit, the organizations must make public a statement accounting for the use they made of the donations and specifying if the funds were destined to attend a cause that helps to mitigate the consequences of the Covid-19 pandemic, in addition to complying with the requirements established in the Income Tax Law.
This regulation aims to encourage citizen participation by allowing the financing of the activities and different operations of organizations in a country with a highly active civil society. As of December 31, 2021, a total of 43691 active CSOs were listed in the Federal Registry of CSOs.