Do I have to report a loan I received to the SAT?

Quick answer

If in a single year you receive loans, gifts and prizes that together exceed $600,000, you must report them in your annual return (LISR / Mexican Income Tax Law, art. 90, second paragraph). You do not pay ISR (income tax) just for reporting them — but if you omit them, the SAT (Mexico's tax authority) can treat them as omitted income through a tax discrepancy (art. 91), with inflation adjustments, surcharges and a fine. It is the cheapest field on the entire return.

The full rule, no myths

The second paragraph of art. 90 of the LISR requires individuals resident in Mexico to report in their annual return the loans, gifts and prizes obtained during the tax year, when individually or in the aggregate they exceed $600,000. Three points that always come up:

  • It is an aggregate total: a $400,000 loan plus a $250,000 gift = $650,000 → both are reported, even though neither on its own crosses the threshold.
  • Reporting ≠ paying: the reported loan does not trigger ISR — it is still a debt, not income. The field is informational.
  • It applies even if you are not otherwise required to file based on your income: receiving these amounts above the threshold pulls you into the annual return solely to report them.

The cost of omitting it: tax discrepancy

Art. 91 LISR empowers the SAT to compare your outlays (spending, acquisitions, deposits, card payments) against your declared income. When you spend more than you declare, the difference is presumed to be income. And here is the catch: loans and gifts not reported under art. 90 cannot be used to rebut the discrepancy — the law itself treats them as omitted income. The money your father lent you, real and documented, is taxed as your own gain because you failed to tick a box.

Reporting is not enough: you have to be able to prove it

The field protects you from the automatic assessment; the documentation protects you from the audit. The ideal file for a loan received:

  1. A loan agreement (contrato de mutuo) with a certain date (fecha cierta) (notarial ratification) — it proves it was a loan from that moment on, not a document assembled once the invitation letter arrived.
  2. An identifiable transfer from the lender to you (a cash deposit is the enemy).
  3. Visible repayments — a "loan" that is never repaid, with no interest or term, smells like a gift or a simulation.

On the other side of the table: if the lender is an individual, their interest is taxable income (we covered this in loans between private parties and taxes); your reporting obligation does not depend on them meeting theirs.

Gifts: the cousin with its own rules

Do not confuse the reporting duty with the exemption for gifts: those between spouses and lineal ascendants and descendants are exempt from ISR without limit (subject to conditions); other gifts are exempt up to a certain annual cap, and the excess is taxed. But the obligation to report under art. 90 runs on a separate track: an exempt gift is still reported if the aggregate crosses $600,000. Exempt but unreported = an avoidable problem.

Have assets but short on cash? For a personal plan, a family emergency or your business: don't sell off your wealth at a loss. A secured loan gives you the cash today while what's yours stays yours. Tell us what you have and how much you need.

Get a quote
Frequently asked questions
Is the $600,000 threshold per loan or on the total for the year?
On the total: loans + gifts + prizes for the tax year, whether individually or in the aggregate (art. 90, second paragraph, LISR). If the total exceeds $600,000, all amounts received are reported.
I received a $700,000 loan and reported it — do I pay tax on it?
No: the loan is a liability, not income; the obligation is only informational. ISR (income tax) would appear only if the SAT proves it was not a real loan (simulation) — hence the importance of a contract with certain date (fecha cierta) and traceability.
What if I already filed my annual return and forgot the field?
You can file an amended return reporting the amounts. Correcting it voluntarily before any request from the authority is dramatically cheaper than explaining it in a discrepancy audit.