Articles written by this author include Legal updates and changes, regulatory updates, industry reviews, legal advice, accounting advice, Professional Employer Organization (PEO) news, Q&A with experts, and more.
As business opportunities grow in Mexico, so does the demand for prime real estate. Investing in Mexico 's real estate market over the last few years has shown increasingly strong returns. Thanks to its combination of iconic cities, unusual tourist attractions, and the economic expansion of its professional middle class, the real estate industry is experiencing substantial growth in...
Each country has their own requirements for taxes and accounting. Mexico is no different and has its own set of tax rules to follow. Below is an overview of the varying legal requirements for doing business in Mexico. 1. Accounting and Taxation - Corporate Income Taxes in Mexico Corporations are subject to different tax rates than other business models, families, or individuals are. They are...
As tax period is currently in full swing, you may be wondering how this affects you as an expat in Mexico. If you're a business owner in Mexico, you're probably already aware that companies' Annual Tax Declarations were due on 31 March 2018. However the dates for tax declarations for individuals are still coming up and need to be submitted by the end of April 2018. Therefore here, we tell you if...
With the growing number of expats living in Mexico, Biz Latin Hub has decided to take a close look at one of the major challenges foreign residents in Mexico have to face: completing an annual tax registry. Continue reading if you want to learn how to pay your taxes properly in Mexico! The law is different for expats and Mexican nationals, therefore, this article only concerns those foreigners...
This article offers an overview of the tax and accounting requirements for both local and foreign companies operating in Mexico. It is important that you understand your business obligations when operating in Mexico. A thorough understanding will ensure that you avoid any penalties that could arise from not fulfilling your duties. In addition, smart accounting can lead to substantial savings...
How Have the Accounting Standards in Mexico Changed? When we speak about business in Mexico, we usually think about the legal, financial, fiscal or tax issues, but not always about accounting. However, in order to establish and operate a successful business one needs to take accounting into consideration. Mexican Accounting Standards A couple of years ago Mexico had its own accounting...
The taxation system in Mexico can be somewhat complicated; this can make it difficult for foreigners operating in the country. Taxpayers in Mexico are divided into four groups, all which have specific tax requirements. It is essential that both foreigners and locals conducting business in Mexico have a comprehensive understanding of the taxation system and their tax obligations. Mexico...
Expat tax treatment of income generated in Mexico is regulated by Title V of the Income Tax (Ley del Impuesto Sobre la Renta). Income can be: Cash Assets Services Credits Any other income as determined by the tax authorities. In article 9 of the Fiscal Code, the following are defined as residents in Mexico: Physical persons who have established their home in Mexico. If physical persons have a...
With the 2016 tax reform, the article 22-D of CFF (Código Fiscal de la Federación) was added, which indicates that the tax authority may apply its right to review your books or pay you a visit in order to ensure that your tax refund is accurate. One of the possible effects of this reform is that taxpayers will not take up the option to request the 5-day tax refund in order to avoid an unwanted...