Doing Business

Doing Business in Mexico 2015

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223 Doing Business in Mexico 2015 Tax computation Mexican Pesos Income - Salary, allowances, bonus, and fringe benefits 1,100,000 Less - Earned income exclusions: Non-taxable fringe benefits - 100,000 Excludable portion of Christmas bonus - 2,019 Excludable portion of vacation premium - 1,009 - 103,028 996,972 Add - Foreign-source investment income 55,000 1,051,972 Deductions: Medical Expenses 30,000.00 Charitable contributions 15,000.00 45,000 Taxable Income Ps 1,006,972 Income tax (Art. 152 MITL) 263,221 10% Income tax on sales of shares in Mexican stock market 3,000 Less - Foreign tax credit (Note) 16,500 Net tax liability Ps 249,721 NOTE: The foreign tax credit allowed is the lesser of the foreign tax paid on the foreign-source income (as in the example) or the foreign tax credit limitation, which is computed by applying the regular tax tables to the foreign source income only. X

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