Doing Business

Doing Business in Mexico 2015

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117 Doing Business in Mexico 2015 Chapter 14 Tax administration Investor tax considerations • Resident taxpayers (corporate or individual) are subject to Mexican taxation on worldwide income. • Non-resident taxpayers (corporate or individual) are taxed on Mexican-source income only. • Corporate taxpayers are required to file an annual income tax return no later than March 31st, of the following year. • Corporate taxpayers are generally required to make monthly advance payments; there are no extensions for corporate returns. • Individual returns are due on April 30; no extensions are granted. • Filing of financial statements that have been audited by an independent public accountant with an opinion on the tax status is optional, considering certain parameters, as taxable income, number of employees and the value of the fixed assets. • Penalty interest is payable on any unpaid tax, as adjusted for inflation. • Joint returns are not permitted. Placing income-producing assets in the name of the non-working spouse can result in some savings. • Individuals receiving compensation directly from abroad must generally make monthly estimated tax payments. • Severe penalties, including imprisonment, can apply in the case of fraud and for failure to file returns, withhold taxes or pay tax liabilities. • Departing aliens should notify tax authorities of the cessation of their tax obligations. Principal taxes The principal taxes in Mexico are as follows (also discussed in Chapter 13): 1. Federal taxes: a. Income tax; b. Value-added tax; c. Custom duties; d. Payroll taxes, mainly social security. 2. Local taxes: a. On real property; b. On salaries 14

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