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Accounting Services

MEXLAW > Accounting Services

You Have Purchased Property in Mexico, What’s Next?

The most critical points that must be considered after purchasing a property in Mexico include: Getting Possession of the Original Title Deed Get that title deed in your hands; five to six months after both parties sign the title deed, your lawyer or the Notary must provide you with the original title deed. The original title deed includes the boleta de registro with the folio number; this document guarantees the title deed has been registered in the Public Registry of Properties. In their files the last information will be the transfer of rights in favor of the purchaser. Annual Payment on the...

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Your Domestic Staff and the Aguinaldo Deadline

The holiday season is quickly approaching, and if you have employees, you need to be aware of the annual bonus all workers are entitled to during the month of December. What is aguinaldo? An annual Christmas bonus that employers in Mexico are required by law to pay to their employees, and it must be paid by December 20. Aguinaldo is separate from vacation pay and it benefits families for the added expenses that come with the holiday season. Article 87 Federal Labor Law states that all employees in Mexico will be entitled to an annual bonus. Not only business owners need to provide...

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Foreigners and Tax Obligations in Mexico

Whether you are an individual earning an income in Mexico, or a business owner in Mexico, you have certain income reporting and tax obligations. This article includes a brief description of the most common taxes and contributions, as well as the corresponding authority. As an employer in Mexico, you are responsible for the following contributions and taxes Payroll Tax 3% of the total salary of the employees is to be submitted monthly to the State Government. The Mexican Social Security Institute (IMSS) Instituto Mexicano del Seguro Social As an employer, you are obligated to pay IMSS for health services and...

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Formalized Tax Collection Through Airbnb in Quintana Roo

Travelers have changed over the years; nowadays many people prefer to stay in homes rather than large resorts. Airbnb has become a popular choice,  an intimate, less expensive way to travel and see the world. Many travelers make lasting connections in these homes and neighborhoods and experience more culture than they would if they were staying at a large resort. Airbnb’s popularity continues to grow and because of its success has triggered concern from the hotel industry regarding tax obligations and the lack of regulations for this type of accommodation. The Mexican government also recognizes the importance of home sharing for...

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THE IRS GETS ITS SHARE, EVEN ON THIS SIDE OF THE WALL

REPORTING OBLIGATIONS OF U.S. CITIZENS IN MEXICO* A recent incident that occurred to a local U.S. ex-pat living in Mexico emphasizes the IRS’ efforts to collect taxes and enforce taxation reporting legislation, even on the fun side of the wall. While on a return trip to the U.S., Tom Smith (the individual’s identity is being withheld) and his family were intercepted at customs and repeatedly asked whether he was the “Tom Smith” that was identified by the passport. After confirming his identity, his family was authorized to enter the U.S., and he was detained. Hours later, a representative of the IRS introduced...

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