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Author: Subject: SAT TO REQUIRE TAX REGISTRATION FOR EXPATS
BajaParrothead
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puzzled.gif posted on 5-22-2022 at 08:03 AM
SAT TO REQUIRE TAX REGISTRATION FOR EXPATS


https://mexiconewsdaily.com/news/tax-reform-requires-expat-t...
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Don Pisto
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[*] posted on 5-22-2022 at 09:13 AM


from Rafael Solorzano a respected tijuana attorney, im just passing it along.....
Damaging Hearsay
RFC (ITIN for Mexico.

I keep being asked if it is now mandatory for all foreigners to have a Tax Id Number or ITIN as some call it north of the border, it's abbreviated as RFC (Registro Federal de Contribuyentes) in Mexico.

Well, I have not found the law to confirm the above, thus this, for now, is just one more rumor.
Currently, In Mexico, a foreigner, with legal residence (temporary or permanent visa holders) with an income (salaries, commissions, rent, etc) is obligated to have a tax id number, report income, and pay taxes. Thus a resident with no income is not obligated to have a tax id number.

I know of people that decided to apply for an RFC and failed to make reports thereafter, when asked they said "well, I don't have an income", well, should have asked what burdens did you take on before putting that noose around your neck!

Yes, if you have an income in Mexico then you must obtain an RFC and make tax reports and for that, you need to retain the services of a CPA before putting the noose around your neck.

I read news clips in some places where they tell ex-pats to get an RFC, I am not sold yet, thus I have been searching for information to confirm the law or debunk more hearsay.
I don't have much respect for a magazine that is read by thousands of Expats that suggests readers get an RFC and fail to cite the law to confirm the information.
By the way, Expats that don't have an RFC and need one, for example, to get a factura from a contractor to deduct investment made to their house can use the XEXX010101000 tax id number known as generic RFC for foreigners.

So far I have seen mere assumptions multiplied primarily by Expats and Mexico News. The tax reform requires people to sign up and get an RFC upon becoming of age, that is, once a person turns 18, but there is NO mention whatsoever of resident foreigners to get an RFC.




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[*] posted on 5-22-2022 at 09:18 AM


If I'm reading this correctly, this rule will apply not only to expats who are permanent or temporary residents, but also to foreign property owners who visit less frequently.



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[*] posted on 5-22-2022 at 09:25 AM


From the CFE (electric company) website:

- Por la disposición oficial, requerimos actualizar tus datos fiscales para evitar rechazo de tu factura de suministro de energía eléctrica ante el SAT; acude a tu Centro de Atención a Clientes. Tienes hasta el 30 de junio de 2022.

google translate:

- Due to the official provision, we require you to update your fiscal data to avoid rejection of your electricity supply bill before the SAT; Go to your Customer Service Center. You have until June 30, 2022.

------------------------

I think this means they want a Registro Federal de Contribuyentes (RFC)
number issued by the Servicio de Administración Tributaria (SAT).

But, I'd be surprised if they cut off an existing customer. However, it might be hard to initiate new service without an RFC.

More bureaucratic BS.

Mexico has a huge "informal" cash economy. I bet there are many, many Mexicans that don't have an RFC.


[Edited on 5-22-2022 by SFandH]




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[*] posted on 5-22-2022 at 09:32 AM


Quote: Originally posted by Don Pisto  
from Rafael Solorzano a respected tijuana attorney, im just passing it along.....
Damaging Hearsay
RFC (ITIN for Mexico.


By the way, Expats that don't have an RFC and need one, for example, to get a factura from a contractor to deduct investment made to their house can use the XEXX010101000 tax id number known as generic RFC for foreigners.




Hmmm, that's interesting.




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[*] posted on 5-22-2022 at 10:00 AM


you need more than the RFC
you will need "Constancia de Situación Fiscal" by July


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https://www.youtube.com/watch?v=0B9kUK37lQA

https://www.youtube.com/watch?v=eh2li1L6mA8&t=162s




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[*] posted on 5-22-2022 at 11:18 AM


“Constancia de Situación Fiscal“

The Proof of Tax Status for IMSS is a document that workers of a company or organization can request to obtain the benefits offered, in kind or money, by the Compulsory Social Security Scheme.

Harald,

You need this to make benefit payments for various Mexicans who do work for you. They, the workers, would need to give you their RFC number? If they have one.
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[*] posted on 5-22-2022 at 03:11 PM


The law states all people are equal, this doesn't apply to citizens therefore its a request outside the rights of residents. No one will comply other than baja nomad forum viejitos...continue normal casual, no one will comply
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[*] posted on 5-22-2022 at 05:12 PM


Goin' rogue? Are ya?
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[*] posted on 5-22-2022 at 07:17 PM


Quote: Originally posted by RFClark  
“Constancia de Situación Fiscal“

The Proof of Tax Status for IMSS is a document that workers of a company or organization can request to obtain the benefits offered, in kind or money, by the Compulsory Social Security Scheme.

Harald,

You need this to make benefit payments for various Mexicans who do work for you. They, the workers, would need to give you their RFC number? If they have one.


By law every Mexican has to have an RFC by July.
Hundreds have been lining up every day in front of the Hacienda in La Paz for many months.
Seems pretty serious.




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[*] posted on 5-22-2022 at 07:19 PM


Quote: Originally posted by gnukid  
The law states all people are equal, this doesn't apply to citizens therefore its a request outside the rights of residents. No one will comply other than baja nomad forum viejitos...continue normal casual, no one will comply


you seem smart - but not very bright




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[*] posted on 5-22-2022 at 08:47 PM


So this is a push to get Mexicans to sign up for their Social Security.

But not us Gringos and we don’t need an RFC if we don’t earn money in Mexico.

An interesting interpretation, if you work remotely from Mexico and are paid and taxed in the US. I wonder what the Hacienda thinks about that?
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[*] posted on 5-22-2022 at 09:12 PM


Quote: Originally posted by 4x4abc  
Quote: Originally posted by gnukid  
The law states all people are equal, this doesn't apply to citizens therefore its a request outside the rights of residents. No one will comply other than baja nomad forum viejitos...continue normal casual, no one will comply


you seem smart - but not very bright


Paul revealed his level of smarts with his covid advice.
If you trusted his covid advice, then perhaps you will trust his tax advice :lol::lol::lol::lol::lol::lol:

[Edited on 5-23-2022 by mtgoat666]




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[*] posted on 5-23-2022 at 05:49 AM


Quote: Originally posted by RFClark  
So this is a push to get Mexicans to sign up for their Social Security.

But not us Gringos and we don’t need an RFC if we don’t earn money in Mexico.

An interesting interpretation, if you work remotely from Mexico and are paid and taxed in the US. I wonder what the Hacienda thinks about that?


There is a tax treaty between the two countries. But if you are renting out your casita, the Hacienda wants to know. And yes, if you have Mexican residency, you need a RFC.




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[*] posted on 5-23-2022 at 07:03 AM


My local bill paying/property management company in Los Barriles told me that CFE is now requiring RFC for new services when gringos are purchasing or building homes. Often times without a Mexican income, they are accepting a "generic" RFC. I guess I'll sit back and see how it all shakes out. If I can't even get an appointment, I'm not going to get too worked up about it yet.
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[*] posted on 5-23-2022 at 08:25 AM


Use to rent a property out in Sonora. My real estate agent (Century21) had someone in their office do this paperwork for us. We had a book to give renters facturas.

That is who I'd ask first.



[Edited on 5-23-2022 by JZ]




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[*] posted on 5-23-2022 at 09:46 AM


Quote: Originally posted by Bajaboy  


There is a tax treaty between the two countries. But if you are renting out your casita, the Hacienda wants to know. And yes, if you have Mexican residency, you need a RFC.


if you are renting out your casita you must pay tax
not declaring that income (tax is due the day you take the money in) is up to you
in a country where the sharks are only waiting to strip you of your property I would not take that risk
I decline any cash offer for my airbnb - it could well be Hacienda bait

by the way, in addition to local hotel taxes, the tax on rentals is 30%
happy renting!




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[*] posted on 5-23-2022 at 09:55 AM


Thanks,

We don’t rent out! Probably have a similar problem at swap meets too!
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[*] posted on 5-23-2022 at 12:28 PM


Not sure that it is clear, there are two types of RFC, persona fisica and persona moral, everyone who has a CURP has a persona fisica but not person moral, which is a associated to a business.

This week I solicited new contracts with SAPA and CFE, I stood in line numerous times in the contracts area, I was never asked for either type of RFC nor residency, all of which I have. No one else was observed being asked for their RFC and showed only IFE or other form of ID e.g passport.

I am sure milage varies by office, and agent.

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[*] posted on 5-23-2022 at 01:10 PM


There must be some other criteria that prompts RFC, as noted a CURP is an RFC which is noted on the residency card for foreigners. But it has been possible to contract with FMM up til now. It may also depend on region, there are different type of contracts in La Paz for rural or urban, home, business solicitudes. Perhaps rural don't require RFC since its less common for rural folks. I notice that there are many claims of new requirements which seem to fade away once you inquire more formally. Water and Power is a right of the people.

[Edited on 5-23-2022 by gnukid]
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