CASES IN WHICH THE INCOME TAX MUST BE PAID
Foreigners residing abroad and earning income in Mexico, or when they have a permanent establishment in the country, for income derived from said establishment.
The above-mentioned persons must pay taxes in Mexico when they obtain income for the following concepts:
Know how much and how you pay, select the type of income you get
Wages
Personal payments
Remuneration to members of councils, administrators, commissioners and managers
Property leasing
Furniture Rental
Timeshare service contracts
Financial leasing
Royalties, technical assistance and publicity
Interests
Awards
Artistic, sports or public entertainment activities
Distributable remnant of non-profit moral persons
Dividends, profits, remittances and profits distributed by moral persons
Sale of real estate
Construction of works, installation, maintenance or assembly in real estate, inspection or supervision
Other income from sources of wealth in Mexico
WAGE INCOME
They are those that are obtained for salaries and other benefits derived from an employment relationship, and include extra time and additional benefits, indemnities, compensation and retirement, pensions, retirement insurance, gratuities, among others, except for remunerations to board members, monitoring, advisory or otherwise, as well as fees to administrators, commissary and general managers.Income tax calculation:
The following rates are applied to the income obtained in the year:
• The tax is not paid for the first 125,900 pesos. • The rate of 15% is paid when income is more than 125,900 pesos up to one million pesos. • The rate of 30% is paid when the income received exceeds one million pesos.
How tax should be paid
The employer or the person who made payments for wages is required to withhold income tax.
If no retention is made, taxpayer who obtains the income calculates and pays the tax by means of a declaration made within 15 days after obtaining the income.
Exempt income
Tax is not paid for income derived from wages, and generally for the provision of a personal subordinate service, paid by residents abroad who do not have a permanent establishment in the country, or that the service is not related to such establishment.
As a requirement for such exemption, it is established that the stay of the service provider in the national territory is less than 183 calendar days, consecutive or not, in a period of twelve months.
INCOME FOR PERSONAL PAYMENTS
Personal payment income is that which is earned for providing independent professional services, such as medical, administrative, financial, accounting, architectural, engineering, computing, design, artistic, sports, music, singing, among others. Services are not provided in a subordinate way, i.e., there is no employment relationship.Income tax calculation
Tax is determined by applying the rate of 25% on the total income obtained, without any deduction.
How to pay tax
Tax is paid by retention that must be done by the person who do the payments. if he is resident in Mexico, or resident abroad with a permanent address in Mexico with which the service is linked.
In all other cases, the taxpayer must enter the corresponding tax by means of a declaration, which he/she submits through Internet or at a bank window, within 15 days after the date on which he receives the income.
Electronic invoice dispatch
Those who receive personal payments income are required to issue electronic invoices.
Exempt income
Tax is not paid for income derived from personal payments, and in general for the provision of an independent personal service, paid by residents abroad who do not have a permanent establishment in the country, or that the service is not related to such business.
As a requirement for such exemption, it is established that the stay of the service provider in the national territory is less than 183 calendar days, consecutive or not, in a period of twelve months.
COMPENSATION TO MEMBERS OF DIRECTORS, ADMINISTRATORS, COMMITTEES AND MANAGERS INCOME
Payments of any kind received by members of management, supervisory, advisory or other boards, as well as personal payments to administrators, commissioners and general managers, are considered within this concept.Calculation of income tax
Companies that make payments must apply the tax rate of 25% to the total amount paid, without deduction.
Payment mode
Individuals who make payments must retain and notice the tax to the Tax Administration Service.
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