# Tax on depositing funds to mexi account?



## englishman (Dec 6, 2010)

Hi all

Im planning to transfer £25,000 (sterling) to my mexican wife's bank account here: scotiabank. Will this trigger tax on her account ? I will be sending the money by swift from my uk account to hers. Can i avoid this tax, if there is such a thing ?
I have an FM2 now but do i have the right not to pay it ????

Thanks


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## Hound Dog (Jan 18, 2009)

englishman said:


> Hi all
> 
> Im planning to transfer £25,000 (sterling) to my mexican wife's bank account here: scotiabank. Will this trigger tax on her account ? I will be sending the money by swift from my uk account to hers. Can i avoid this tax, if there is such a thing ?
> I have an FM2 now but do i have the right not to pay it ????
> ...


The tax on cash deposits is a tool being used by the Mexican authorities to tax the substantial untaxed cash economy here and does not apply to wired funds or checks drawn on another bank and deposited to your account . You would not have the right to not pay the tax assessed on cash deposits in excess of the calendar monthly limit of $15,000 which is automatocally deducted and to try to do so would be foolhardy and pointless sine the tax is inconsequential. This is not an an issue in your case as you are wiring funds.

As an interesting aside, the tax on cash funds in excess of the $15,000 Peso limit each calendar month is is only assessed on the funds exceeding the $15,000 Peso limit so if you make a cash deposit of, say, $20,000 Pesos in any given calendar month, the tax applies to the $5,000 Peso excess. not the $20,000 Peso deposit in gross. The tax on any excess cash deposit is not particularlly onerous so I wouldn´t worry about that but the larger than permitted untaxed deposit will trigger review by some bureaucrat in Mexico City or some outlying taxing authority and the rule for pleasant living in Mexico is to not attract attention by performing some extraordinary act even if in total innocence. As I´ve stated in a previous post on this subject, the officials at SAT who called me to Guadalajara to explain my innocent but unusual cash deposit could not have been more courteous once they understood that my cash deposit had been a result of my ignorance of the new changes in the law. No matter; we still wasted a day driving up from Lake Chapala and sitting in the SAT offices for hours so they could apologize for inconveniencing us. I never met a bureaucrat that civil and polite in San Francisco so in terms of equanimity´as exhibited by governmental functionaries, I´ll take Guadalajara over San Francisco any day.

Mexico is a decidedly polite socieaty as long as you don´t hog the left lane driving inattentively a la Southern California or spit in their eyes. Do that and say your prayers because your interview with St. Peter is shortly to commence.


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