# Getting RFC and paying income tax in Mexico



## ndee (Apr 4, 2018)

I'm living in Mexico for a year (as a temporary resident), and it seems that I need to pay taxes on my income that I'm getting outside Mexico.
I'm also going to buy an apartment in Mexico, and probably sell it a few years later. (What is the subject to a tax too, as far as I understand)

So, I'm trying to register for the RFC number online. There is a question there: "¿Tiene fuente de ingresos en territorio nacional?", and I wonder what would be the correct answer in my case? I'm not getting any income *in* Mexico (yet), but I probably will need it later. Should I answer "No" and then change my status later, or just answer "Si" now (if it doesn't involve too much extra paperwork)?


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## TundraGreen (Jul 15, 2010)

ndee said:


> I'm living in Mexico for a year (as a temporary resident), and it seems that I need to pay taxes on my income that I'm getting outside Mexico.
> I'm also going to buy an apartment in Mexico, and probably sell it a few years later. (What is the subject to a tax too, as far as I understand)
> 
> So, I'm trying to register for the RFC number online. There is a question there: "¿Tiene fuente de ingresos en territorio nacional?", and I wonder what would be the correct answer in my case? I'm not getting any income *in* Mexico (yet), but I probably will need it later. Should I answer "No" and then change my status later, or just answer "Si" now (if it doesn't involve too much extra paperwork)?


I am no tax authority, but I suggest you say NO and change it later. If you say YES, you would probably be expected to file monthly tax statements.


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## ndee (Apr 4, 2018)

TundraGreen said:


> If you say YES, you would probably be expected to file monthly tax statements.


Monthly? Why?


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## chicois8 (Aug 8, 2009)

Welcome to Mexico ........


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## lagoloo (Apr 12, 2011)

"If at first you don't succeed"..............saw this on another forum, where it went nowhere. Too many "if's".


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## TundraGreen (Jul 15, 2010)

ndee said:


> Monthly? Why?


When I was working full time (for a Mexican government agency), I was required to file a monthly tax statement. It was complicated enough that I paid someone to do it for me, even though I have always done my own US taxes. You can file on line I believe, although at the time you had to have a Windows computer and couldn't use an Apple computer. If you are paying taxes in Mexico, you can get a "Factura" instead of, or in addition to, a receipt for many purchases. The Factura includes your RFC number and means the taxes you paid on the item are credited to your account. When you file taxes, you can deduct all the factura-ed expenses. Most small places do not pay the tax and will not give you a factura, or if they give it to you, the cost will be higher. But any large establishment can provide a factura.


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## ndee (Apr 4, 2018)

TundraGreen said:


> When I was working full time (for a Mexican government agency), I was required to file a monthly tax statement.


Any official source would be nice. It may be specific to your circumstances only.

Anyway, I asked 4 tax advisors here so far, and nobody gave a certain answer if they know how to do taxes in my case.


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## RVGRINGO (May 16, 2007)

If you have no source of income in Mexico, the answer is “No“.
The question is in the present tense. Besides; you cannot work in Mexico on your visa without formal OK from INM authorities.... A lucrativa endorsement.


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## ndee (Apr 4, 2018)

RVGRINGO said:


> If you have no source of income in Mexico, the answer is “No“.


In this case, I can't choose Mexico as my country of residence. What means that I have to pay tax somewhere else - that doesn't make the situation any less complex 



RVGRINGO said:


> Besides; you cannot work in Mexico on your visa without formal OK from INM authorities.... A lucrativa endorsement.


As I was said in the INM, I can't work for Mexican employers - what is a bit different.


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## RVGRINGO (May 16, 2007)

You cannot work for anyone, not even yourself, and receive any payment in Mexico on an FMM tourist permit or a Residente Permanente visa, unless you apply to INM for a Lucrativa endorsement for your visa. 
Otherwise, you would have to wait three more years, when you could transition to a Residente Permanente visa and have automatic permission to work, but with simple notification to INM.
If you work, you will need a CURP, RFC and other government documentation, and probably an accountant to do your regular tax reporting several times per year.


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## ndee (Apr 4, 2018)

RVGRINGO said:


> You cannot work for anyone, not even yourself, and receive any payment in Mexico


Could you point to any official source? BTW, what if I don't receive my payments in Mexico?


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## TundraGreen (Jul 15, 2010)

ndee said:


> Any official source would be nice. It may be specific to your circumstances only.
> 
> Anyway, I asked 4 tax advisors here so far, and nobody gave a certain answer if they know how to do taxes in my case.


There was nothing special about my tax situation. I had a contract to work for the Mexican government. I am pretty sure it is a requirement to file monthly. I filed in Mexico on my Mexican income and the US on my US income and didn't mix the two. I might have been violating US tax law by not reporting my Mexican income to the US, but it was way, way under the Foreign earned income exclusion.

The tax advisors may be confused because few people report non-Mexican income to Mexico. Also, regarding buying property, there are taxes involved both in buying and selling but they are handled by the Notario Publico (real estate attorney) who handles the transaction.


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## ndee (Apr 4, 2018)

TundraGreen said:


> There was nothing special about my tax situation. I had a contract to work for the Mexican government.


It just looks strange. All the sources I have found so far state that the income tax declaration is to be filed once a year, before 30 April of the next year. https://smartexpat.com/mexico/how-to-guides/financial-legal/accountant/income-tax


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## TundraGreen (Jul 15, 2010)

ndee said:


> It just looks strange. All the sources I have found so far state that the income tax declaration is to be filed once a year, before 30 April of the next year. https://smartexpat.com/mexico/how-to-guides/financial-legal/accountant/income-tax


I think the difference may be employees versus self employed. I had a contract but was not an employee, so I was self-employed and had to file a statement of taxes paid monthly. Maybe employees only have the annual requirement.

Calendario Fiscal 2018


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## AlanMexicali (Jun 1, 2011)

ndee said:


> It just looks strange. All the sources I have found so far state that the income tax declaration is to be filed once a year, before 30 April of the next year. https://smartexpat.com/mexico/how-to-guides/financial-legal/accountant/income-tax


In Mexco income tax declaration forms are filed in April were itemized deductions are entered but payments are paid every month or every 3 months. In the US payments are every month and filing tax returns is in April.


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## ndee (Apr 4, 2018)

AlanMexicali said:


> In Mexco income tax declaration forms are filed in April were itemized deductions are entered but payments are paid every month or every 3 months. In the US payments are every month and filing tax returns is in April.


Hmmm. Any source for this information?


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## TundraGreen (Jul 15, 2010)

ndee said:


> Hmmm. Any source for this information?


This is a forum. People do their best to share their knowledge in response to questions. You are smart to not taken everything said here as necessarily correct, but repeated requests for sources makes it sound like someone wants others to do the research for them.


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## ndee (Apr 4, 2018)

TundraGreen said:


> This is a forum. People do their best to share their knowledge in response to questions. You are smart to not taken everything said here as necessarily correct, but repeated requests for sources makes it sound like someone wants others to do the research for them.


Well... I indeed never take anything what strangers say for granted. Because many people have no idea what they're talking about, and it would be very stupid to trust them blindly. And as far as I understand, forum is a place where people share their knowledge, this is what it's made for. Isn't it?


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## surabi (Jan 1, 2017)

Just because you live in Mexico does not mean you have to pay income taxes in Mexico for money earned outside of Mexico. You don't. 
I have a business and am self-employed. I file and pay taxes on my business income every two months. I have no employess, so it's not very complicated and I do it myself. 
And I don't understand why you post the question on a public forum, then when you get answers, you ask for sources. Pay an accountant for official info if you don't believe the answers here.


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## ndee (Apr 4, 2018)

surabi said:


> Pay an accountant for official info if you don't believe the answers here.


Nothing useful from them so far. It seems they don't really know.


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## ndee (Apr 4, 2018)

RVGRINGO said:


> You cannot work for anyone, not even yourself, and receive any payment in Mexico on an FMM tourist permit or a Residente Permanente visa, unless you apply to INM for a Lucrativa endorsement for your visa.


Really?
https://www.gob.mx/sre/acciones-y-programas/visa-de-residencia-temporal


> Este tipo de visa puede solicitarse directamente en cualquier representación consular de México *y le permite al extranjero trabajar en nuestro país, siempre y cuando el salario que perciba sea pagado en el extranjero.*


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## RVGRINGO (May 16, 2007)

My error: That should have said Residente Temporal, instead of Residente Permanente. Sorry for the confusion, if any was caused.
Residentey Permanente: May work in Mexico with notification to INM.
Residente Temporal: May work in Mexico with formal & specifica approval & endorsement by INM.
FMM tourist permit: May not work in Mexico.


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## ndee (Apr 4, 2018)

RVGRINGO said:


> Residente Temporal: May work in Mexico with formal & specifica approval & endorsement by INM.


Hmmm you sure about that? Point 2 (working for Mexican companies) from the immigration website says that permission from the INM is required, but point 1 says nothing about this.



> 1. Este tipo de visa puede solicitarse directamente en cualquier representación consular de México y le permite al extranjero trabajar en nuestro país, siempre y cuando el salario que perciba sea pagado en el extranjero.
> 2. En caso de contar con una oferta de empleo en México y recibir su salario en territorio nacional, la empresa o persona física deberá gestionar directamente ante el Instituto Nacional de Migración la autorización para la expedición de visa del extranjero.


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## TundraGreen (Jul 15, 2010)

ndee said:


> Hmmm you sure about that? Point 2 (working for Mexican companies) from the immigration website says that permission from the INM is required, but point 1 says nothing about this.


I don't understand what the disagreement is. It seems pretty clear: To receive salary in Mexico permission is required (Pt.2) If your salary is paid outside of Mexico, it's okay (Pt. 1). 

So as RV stated you cannot for example consult on your own in Mexico and be paid in pesos without express permission. But if you work online, for another example, and are paid in dollars outside of Mexico, no problem.


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## ndee (Apr 4, 2018)

TundraGreen said:


> I don't understand what the disagreement is. It seems pretty clear: To receive salary in Mexico permission is required (Pt.2) If your salary is paid outside of Mexico, it's okay (Pt. 1).
> 
> So as RV stated you cannot for example consult on your own in Mexico and be paid in pesos without express permission. But if you work online, for another example, and are paid in dollars outside of Mexico, no problem.


That's what I thought. And the other guy wrote that a permission from INM is required in any case.


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## surabi (Jan 1, 2017)

ndee said:


> That's what I thought. And the other guy wrote that a permission from INM is required in any case.


On Residente Permanente status no permission is required to work and earn money in Mexico. However, you are required to notify INM of your business activity, and, if you change what you are doing or where you are working, you need to notify INM of the change.


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## ndee (Apr 4, 2018)

surabi said:


> However, you are required to notify INM of your business activity, and, if you change what you are doing or where you are working, you need to notify INM of the change.


What makes you think so?


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## RVGRINGO (May 16, 2007)

La Ley. Just ask INM.


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## surabi (Jan 1, 2017)

ndee said:


> What makes you think so?


You come on here looking for answers and then when you are given them, you respond in a snotty manner. Have lived here 16 years, am aware of the laws and requirements. Unlike you, I have actually bothered to go to the Mexican tax dept. and INM to inform myself of their policies.


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## chicois8 (Aug 8, 2009)

ndee, she may be answering in this rude way because English may not be her first language since she indicted she is from Russia...If I received snotty or curt answers I would ignore the whole thread...........


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## Pitufohead (Apr 19, 2018)

I have two Mexican friends who work at the same place in a government organisation. One submits a tax declaration annually, the other, monthly. The monthly one has a second job as a doctor and her income varies because the number of appointments she gets fluctuates weekly. That's one reason for 'why monthly?', anyway.


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## ndee (Apr 4, 2018)

RVGRINGO said:


> La Ley. Just ask INM.


It seems that they just don't know for sure


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