Roberto
Guest
Following was sent to all HOA members at Princessa:
IF you rent your condominium.
This is to notify you of what we understand concerning the new Hacienda (SAT) , Small Business Tax Structure. All owners will need to comply with the new SAT laws that will be implemented January 1, 2014. If you are an owner of property and have income from that property you are required to register with the SAT.
The closest SAT office that you can register at is in Mexicali, you have to register in person. There is a possibility that there may be a mobile office in Puerto Penasco but this has not been determined yet. The individual owner will not only have to register with the SAT but will have to obtain a bank account with a debit card with electronic signature and electronic password ability. This will also open up owners to U.S.-F-BAR reporting requirements.
To open a Mexican bank account you will need a copy of your passport, a valid & updated migration document and a recent bill – power, phone, property tax or water.
This new income tax will be zero the first year but will go to 10% starting in 2015. The rate in 2015 will be based on your net income from 2014. There will also be an increase in the sales tax from 11% to 16% and also the 2% lodging tax. The net income will allow only expenses that are obtained through a factura to be deducted. This will not include anything bought in the U.S. or any other labor or materials purchased in Mexico that do not have a factura issued.
The rental companies will not be able to rent units that are not tax compliant without risking penalties from the SAT. SAT has made this an enforcement action for 2014. The plan is to find and penalize owners outside the system. The penalty may include moving you to the General Business Regimen that would have a tax rate of up to 35%.
This is a brief overview as we understand the law. If you have any questions please contact a Mexican accountant. Please remember that Mexican Banks, Hacienda and Migration Office maybe closed during the holidays.
Thank You!
IF you rent your condominium.
This is to notify you of what we understand concerning the new Hacienda (SAT) , Small Business Tax Structure. All owners will need to comply with the new SAT laws that will be implemented January 1, 2014. If you are an owner of property and have income from that property you are required to register with the SAT.
The closest SAT office that you can register at is in Mexicali, you have to register in person. There is a possibility that there may be a mobile office in Puerto Penasco but this has not been determined yet. The individual owner will not only have to register with the SAT but will have to obtain a bank account with a debit card with electronic signature and electronic password ability. This will also open up owners to U.S.-F-BAR reporting requirements.
To open a Mexican bank account you will need a copy of your passport, a valid & updated migration document and a recent bill – power, phone, property tax or water.
This new income tax will be zero the first year but will go to 10% starting in 2015. The rate in 2015 will be based on your net income from 2014. There will also be an increase in the sales tax from 11% to 16% and also the 2% lodging tax. The net income will allow only expenses that are obtained through a factura to be deducted. This will not include anything bought in the U.S. or any other labor or materials purchased in Mexico that do not have a factura issued.
The rental companies will not be able to rent units that are not tax compliant without risking penalties from the SAT. SAT has made this an enforcement action for 2014. The plan is to find and penalize owners outside the system. The penalty may include moving you to the General Business Regimen that would have a tax rate of up to 35%.
This is a brief overview as we understand the law. If you have any questions please contact a Mexican accountant. Please remember that Mexican Banks, Hacienda and Migration Office maybe closed during the holidays.
Thank You!
