How to Declare and Calculate the Withholding of Taxes VAT and ISR of DIDI of the SAT

DIDI has been a solution for many people in the world. But how does DiDi Conductor work ?; Since, being an economic activity, we must pay our taxes. Today you will learn how to declare and calculate the VAT and ISR withholding of DIDI from the SAT.

What is the SAT?

Its acronym stands for “Tax Administration System”; It is an organism or institution of the government of Mexico, which mainly is in charge of collecting taxes of all taxpayers, both individuals and corporations.

It should not be confused with the SAT of Guatemala; that has acronyms with the same meaning and has the same purpose, but within the aforementioned territory. In any case, the goal of both is facilitate the contribution of taxes by citizens.

What is the VAT and ISR tax withholding of the SAT?

The taxes that must be voluntarily complied with are VAT (Value Added Tax) and ISR (Income Tax). In Mexico, its withholding on monetary transactions had a reform on June 1, 2020.

photo of a sat headquarters in mexico

Paying taxes, though can be annoying at timesHe has his reasons for the good of the nation. Reason why, it is interesting to know the disadvantages and advantages of the value added tax (VAT).

This reform forces applications such as DIDI or Uber, to do withholding taxes regularly; therefore you can declare taxes if you are an Uber or DIDI driver. This applies to payments of any kind, be they credit cards or even cash.

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The formula for its calculation is simple; It can be summarized as follows: TAX = Total accumulated income * Tax percentage. In the case of DIDI, it must be taken into account that the amount of Total accumulated income includes the commission charged by the App to the driver.

So we can declare and calculate the VAT and ISR withholding tax of DIDI of the SAT

DIDI Conductor calculates and retains the VAT and ISR taxes automatically; Since an RFC (Federal Taxpayers Registry) identification is needed to work in DIDI. The calculation is daily and for each trip; its totalization is weekly, every Monday starting at 12:01 am.

As everything is automated, the driver you won’t have to go make a statement of taxes each month. Since DIDI previously discounts the amounts, before paying the driver his accumulated earnings.

driver didi screens to view tax withholding

However, it is useful know where to locate withholding calculations of taxes within the application; this way we will have an idea of ​​what we are paying as taxpayers, and the net profit that we are going to receive from DIDI.

To access all the aforementioned calculations, first of all we must open our DIDI Driver app and follow the next steps:

  • Press the earnings button in the upper right.
  • We enter “My Wallet” where our “Balance” is shown.
  • We make click on “Travel” to view the “Income for the day” screen.
  • We select the last day Monday and at the end of all the buttons “VAT Withholding taxes” and “ISR Withholding taxes”.
  • By clicking on any of them, we will see “Tax details” that shows us the weekly period, the tax amount, total accumulated income, tax percentage and the applied TAX formula.
  • In “Show more” we can display a table that reflects the tax percentages that are applied according to the Total accumulated income.
  • For more detail, we can press the “History” button; where we visualize the withholding tax broken down for each trip.

The “Show more” button table has 4 levels; each one with a minimum and maximum range of Weekly Earnings of the driver. As the case may be, you will have a withholding percentage for income tax (from 2% to 8%); while VAT has a fixed percentage of 8%.

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In conclusion, DIDI makes life easier for the driver; since it avoids the hassle of having to make the calculation and the declaration in the SAT of the VAT and ISR taxes. Thus, he will only have to worry about the trips, which he must do to have his winnings.

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