What is this leading to?

joanC

Well Known Member
The 2 issues for the vast majority of expats in Penasco:

1. Do resident expats, property owners or not, having legal permanent Mxcn residency with no right to work, and with no Mexico sourced income or employment, but having income from abroad, have to file Mxcn tax returns declaring their foreign income?

2. Do expats property owners who are not documented as permanent residents, with no Mexico sourced income or employment but income from abroad, have to file Mxcn tax returns declaring their foreign income?

Other questions arise if the expat property owner owns her property through a US LLC, but that can wait for another day!

Does anyone know the answer?
 

Terry C

Well Known Member
Shorten version I read is that anyone over 18 years of age with a temporary or permanent residency must apply.
 

joanC

Well Known Member
Many expats buy visas for 30 to 180 days at the border. If they have no Mxcn sourced income , do they need a RFC?

Moe importantly, who has to start filing a Mxcn tax return declaring world income?
 

ron

Well Known Member
I think this is going to develop into more of a tracking system for expats.

According to the article, "Lakeside News, an English-language news outlet that publishes on the Semanario Laguna website, said that without an RFC number on your electricity bill, you won’t be able to sell your house or buy a car. It also noted that in some places, an RFC number is needed to open a bank account or contract internet service."

Also, "Another bureaucratic requirement of foreigners once they have an RFC number is to obtain a document called Constancia de Situación Fiscal (Proof of Fiscal/Tax Situation). That document will be required by any foreigners doing business in Mexico, even if that business is simply being an electricity, water or internet customer."

To me that means anyone contracting for services will need the number in the future.
 

Terry C

Well Known Member
From an attorney in a form over in Baja

Fiscal reform and obligation to register with SAT to get a TaxPayers Id (RFC).
I sent letters to 3 different notaries regarding the above, and one replied as follows:
"Desconozco ese rumor, a mi entender no es una obligación excepto para los temas que usted menciona"
"I ignore that rumor, in my opinion, it is not an obligation except for those that do have a business or generate an income."
Rafael Solorzano.
 

joanC

Well Known Member
CFE is an arm of the Fed Govt and it now appears they are using it for tax reform.

We know from recent experience that to sell a property in Mx one must have the CFE bill in the name of the seller. Now, it is necessary that the CFE bill show a RFC, the equivalent to a TIN.

The main question remains: must an expat with no Mexico sourced income, but who has a RFC, file an annual tax return declaring foreign income?
 

joanC

Well Known Member
A couple of these articles say it's common that expats are audited by SAT every year.

CFE emailed us today an important notice regarding the new RFC requirements. Server error prevents me from posting it.



https://www.greenbacktaxservices.com/blog/expat-taxes-explained-living-mexico/

https://www.taxsamaritan.com/tax-article-blog/us-expat-tax-in-mexico/

 

joanC

Well Known Member
If Mx has any hopes of going from 4th world to maybe 3rd world, it has to develop an income tax system. To this point most tax revenue comes from IVA...14 % ? The majority of locals are hustling in the "sale on the street". They have had limited success making the streeters pay any tax.

So, now expats are ripe for the plucking...is that the right spelling?
 
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