# Pay taxes in usa or mexico



## alegra1983 (Feb 10, 2016)

I currently work for an American Company (Get paid in USD) and live in Mexico. Am I obligated to pay taxes in Mexico?


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## joaquinx (Jul 3, 2010)

That would depend on whether you go to work on a computer at home or go to an office/plant owned/operated by this American company. Is this American company licensed to do business in Mexico? If so, are you employed at the Mexican site?


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## alegra1983 (Feb 10, 2016)

The company has offices/warehouses operating in various parts of Mexico (&%$# SA DE CV). I'm employed/payed through my US headquarters. I currently have an FM3 work visa.


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## chuck846 (Jan 15, 2016)

alegra1983 said:


> I currently work for an American Company (Get paid in USD) and live in Mexico. Am I obligated to pay taxes in Mexico?


What does your employer think ? Have they issued you an RFC ?


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## alegra1983 (Feb 10, 2016)

My US employer thinks it's okay; I continue to get paid on the US payroll. They haven't gotten involved in issuing me an RFC. I'm a US citizen earning a US salary while living in Mexico. I just want to do what's right and abide the laws for both the US and Mexico.


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## chuck846 (Jan 15, 2016)

alegra1983 said:


> My US employer thinks it's okay; I continue to get paid on the US payroll. They haven't gotten involved in issuing me an RFC. I'm a US citizen earning a US salary while living in Mexico. I just want to do what's right and abide the laws for both the US and Mexico.


Not sure you are going to like this response - but when we were in a similar situation we walked into the local SAT office and asked them. Get it from the horse's mouth so to speak. It would probably be useful to get the name of the person you might speak to etc.


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## alegra1983 (Feb 10, 2016)

Thanks Chuck. I've spoken to so many people, especially tax attorneys in Mexico, and everyone has told me something different. I might have to visit a SAT office like you mentioned.


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## chuck846 (Jan 15, 2016)

Any way you look at it you will still need to file a US return - probably until you die. The question is - I guess - do you pay Mexico some of the taxes and the claim foreign tax exclusion for a portion or not. I am not an accountant etc.


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## AlanMexicali (Jun 1, 2011)

alegra1983 said:


> My US employer thinks it's okay; I continue to get paid on the US payroll. They haven't gotten involved in issuing me an RFC. I'm a US citizen earning a US salary while living in Mexico. I just want to do what's right and abide the laws for both the US and Mexico.


If the company has you working in an office or factory in Mexico you need to have a Residente Temporal Mexican immigration visa/card with a "Permiso para Trabajar," work permit with your temporary resident visa, and a RFC number to legally be in Mexico and working anyplace. They will tax you for all your earnings no matter which country your pay is deposited in at their rate of taxable income. If it is for example 15% in Mexico and 25% in the USA you will pay 25 - 15% = 10% of your taxable income to the IRS in the US and 15% to SAT in Mexico.


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