Expat Tax Treatment of Income Generated in 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:

  1. Physical persons who have established their home in Mexico. If physical persons have a domicile in another country, they will be considered as residents in Mexico if this is where they hold their vital interests. For purposes of determining the vital interests, amongst other things, the following will be taken into account:
  • If 50% or more of total income in the calendar year is generated from Mexico
  • If the main center of work activities is located in Mexico

2. Legal entities that administer their businesses in Mexico or have their operating headquarters in Mexico. Based on this information, nationality is not relevant in determining the place of residence.

So how we can help at the Biz Latin Hub?

Looking for more information about expat tax treatment in Mexico? At Biz Latin Hub we have a group of local professional accountancy experts, who are specialized in taxes and can answer all the questions you may have. Besides, Biz Latin Hub has extensive experience in assisting foreign individuals and companies to do business in Mexico and Latin America. Don’t hesitate, and contact our CEO, Craig Dempsey here to see how we can be of assistance.

The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.

Tags: Business | Expats | Taxes

Categories: Mexico

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