Doing Business

Doing Business in Mexico 2015

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188 Tax and Legal Services - PwC Mexico Other taxes Local taxes on income Some states impose taxes on salaries and wages, which are payable by the employer. Such tax may be from 2% to 3% of gross wages, without a cap. Some Mexican states may assess a local tax on specific activities such as independent personal services, rental income and sales of real estate. Wealth, gift and inheritance taxes No specific wealth or inheritance taxes exist in Mexico. For federal income tax purposes, inheritances are tax exempt. Recipients of gifts from a spouse or lineal descendant/ancestor (parent, grandparent, child, grandchild, etc.) are also income tax exempt. In most circumstances, in order to maintain the income tax exemption, gifts and inheritances must be disclosed in the recipient's annual income tax return. Gifts from other sources exceeding three times the annual minimum wage are subject to federal income tax on the excess.

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