BajaNomad

Another new law

divemulege - 2-6-2014 at 11:40 AM

Another new law is coming out saying that if you spend more than $2000 pesos you have to use check or credit card. Not sure if it applies to foreigners or not but quite interesting.

http://www.cadenanoticias.mx/nota.php?cont=notas&nota=83...






[Edited on 2-7-2014 by BajaNomad]

DENNIS - 2-6-2014 at 11:45 AM

This won't happen. Who, in a private sale, like buying a car, would ever accept a check?

shari - 2-6-2014 at 11:54 AM

yup...my accountant told me yesterday that any expenditure over 2,000 pesos must be paid for with your bank or credit card...no mention of cheques...prolly not because all the facturas one gets for tax purposes HAVE to be electronic now...no paper receipts anymore...weird...folks are just shaking their head in disbelief and muttering comments about the new government's policies. I cant imagine how small mama & pappa businesses can swing it doing all this computer reporting...I find it infinitely challenging myself and makes operating a business even MORE complicated than it already is.

bajalinda - 2-6-2014 at 12:14 PM

right - but this applies to businesses, not the general public, if I understand the article correctly.

I've also been wading through all this new stuff with our accountant and everyone is grumbling about it here too.

dasubergeek - 2-6-2014 at 12:40 PM

PFFFFFFFFFFT. Yep. That'll actually happen, just like that law that says everyone has to fully declare their income is always followed in both letter and spirit.

divemulege - 2-6-2014 at 12:44 PM

Translated: The physical - moral including persons Incorporation Fiscal Regime , and will have to stop using cash this year , exceeding its 2000 pesos purchases , including making payroll workers , tax experts warned .

So they can make their deductible expenses , it is necessary that they be liquidated since opened in the name of the taxpayer accounts in the financial system , as established by the new Law on Income Tax (ISR ) .

Either by electronic transfer , personal check from the taxpayer's account , credit card , debit card or service is to be made as will purchases and higher payments to 2000 pesos , from this year.

Roberto Cavazos , director of CPA Global, said that according to the third section of Article 27 of the new Income Tax Law , payments to over 2000 pesos and should not be in cash but through a financial service payroll.

"The Law of previous ISR exempted payroll , however with the amendment to the Federal Labour Act now in the new Income Tax Law removed the exception," he said.

Raúl González Pérez Góngora fiscalist and Associates, said the IRS requirement that payments be through a financial service and no cash , is to ascertain the true income and spending by taxpayers.

"Cash is not marking, with effective authority can not know the pace of life that bears the taxpayer can not trace , whereas if paying by check , electronic transfer or credit card , yes ," he said .

DavidE - 2-6-2014 at 01:13 PM

EVERY TRANSACTION over an ever decreasing amount will be eventually monitored to INSURE the recipient's RFC number is recorded, with appropriate notification to SAT/SHCP. Hahahahahahaha, how about the one where ATM transactions require your passport number.

The fun part about this is oh say, transactions where an extraneous may "rent" a casa to another extraneous without reporting proceeds to Hacienda and then have Hacienda seize the home Fideicomiso or deed owned and nullify the residency permission of the lender.

You cannot even begin to imagine what the PRI is cooking up for new fees, regulations and restrictions. Like the one that absolutely FORBIDS under gran delito federal the transfer of extraneous currency from one Mexicano to another. The money MUST be deposited in a dollar-only account and properly taxed, before being extracted as pesos.

It is looking bleaker. I never thought in a million years some of this stuff would see the light of day. "It was said to me" the Baja California proyecto nacionalizado for motor vehicles has moved forward another step.

I burned 214 pesos last night on a telephone call getting all the latest gossip. I hung up totally dispirited. I cannot believe they are going to do this stuff...

BajaBlanca - 2-6-2014 at 02:11 PM

Yup and yup again. We were told that all our business transactions must be done by credit card from now on. Are you kidding me? The new facturas are so complicated that our accountant has requested we do them thru her ... So, email her the details and she emails the factura/ invoice directly to the recipient.

Right.


What do we do when there is no phone and no electricity? Give me a break. Very bizarre changes now. And David, I heard the same, no foreign money can go into a Mexican acct, so family cant send money from the states to family here without the cash being doubly taxed (once in US and again here).

Time to go on a vacation and hope this blows over ((:

[Edited on 2-6-2014 by BajaBlanca]

DianaT - 2-6-2014 at 02:26 PM

Quote:
Originally posted by BajaBlanca
..... And David, I heard the same, no foreign money can go into a Mexican acct, so family cant send money from the states to family here without the cash being doubly taxed (once in US and again here).



That is going to really hurt and there are possibly some tracking implications involved in that one! OUCH

I just shake my head every time someone posts about how much they love Mexico because of the freedom from regulations. There are lots of reasons to LOVE Mexico, but that is not one of them. And someday they may start enforcing all the laws and regulations!

Cash

dpwahoo - 2-6-2014 at 02:36 PM

I know that several times I went to home depot to purchase paint and supplies for my workers, they would not take anything over about 250.00 in dollars. i cant remember if it applied to pesos also. And, it was a big hassle to get a manager over to re ring every thing back up, splitting the total in half. This was last year before the tax increase, so i doubt it had anything to do with that.:no:

DavidE - 2-6-2014 at 03:50 PM

The people voted in the PRI. The dinosaurs have been planning this ever since Fox kicked the PRI out of Los Pinos. The greedy bastards cannot steal money that is not there. Yeah, honesty: Raul Salinas: "Oh I made that 180,000,000 dollars in Swiss bank accounts deposited under alias names honestly - SHREWD INVESTMENTS"

Who is the FOOL out there who believes Mexico is holding HUNDREDS OF BILLIONS OF DOLLARS in dollar reserves? Cash? Politicians? Billions upon billions? If a Bank of Mexico executive team had such wealth they would be kidnapped so fast, oh wait, how can you kidnap someone living on the 140th floor penthouse in Dubai - lapse of thinking here - that Bank of Mexico BANIX person would haved hauledass the instant all the pallets were aboard the chartered jet.

The 21th century

El saqueo del siglo México 2000 está en marcha. Existe más botones para presionar por más pesos a caerse. Todo eso es lo que ellos quieren. Conserve su ropa interior o dirá adiós también.

The best is yet to come. If you are extraneous you have NO VOTE. Got it. You are a twenty six point buck with a fluorescent bulls eye on your shoulder. Gringos have money. Gringos with homes or businesses cannot complain.

Ya damned right I am angry, my kids are suffering from the effects of reaganized inflation. You can't see it cause the tax folks say "It Ain't So". Loved it when bus ticket prices jumped TEN PERCENT in one month.

It isn't the DAMNED five percent tax increase. It is the Movie Star and her husband that orchestrates the PRI chicanery. Try living on a Mexican income and put up with stuff. I've got to get fixed up and get back to Michoacan before my kid and grandkids starve to death. ARGGHHHH!

Technology

baconjr - 2-6-2014 at 06:51 PM

Quote:
Originally posted by shari
yup...my accountant told me yesterday that any expenditure over 2,000 pesos must be paid for with your bank or credit card...no mention of cheques...prolly not because all the facturas one gets for tax purposes HAVE to be electronic now...no paper receipts anymore...weird...folks are just shaking their head in disbelief and muttering comments about the new government's policies. I cant imagine how small mama & pappa businesses can swing it doing all this computer reporting...I find it infinitely challenging myself and makes operating a business even MORE complicated than it already is.


A friend of mine who operates a small business has a card reader on his smart phone. When he makes a transaction the money is captured, the proper accounting is done in Quickbooks and seamlessly into Intuit for tax accounting. Maybe that is what the model is. A need for a more robust infrastructure. Lets face it Mexico is corrupt and until they can gather data and show what is going on it will always be a mess.

Marc - 2-6-2014 at 07:18 PM

Big gov libs should be happy with this.

dasubergeek - 2-6-2014 at 08:28 PM

Oh, Google Translate. Here's my own translation of it:
Quote:
Physical persons—including those from the Fiscal Incorporation Regime—and legal entities will have to stop using cash this year for their purchases of more than 2 000 pesos, including the payment of salary to workers, tax lawyers warned.

In order for their expenditures to be deductible, it is necessary for these to be liquidated from accounts opened in the name of the taxpayer in the financial system, according to what is established in the new Income Tax (ISR) law.

Whether it be by electronic transfer, personal check from the taxpayer's account, credit card, debit card or service card, this is how purchases and payments of more than 2 000 pesos must be carried out, starting this year.

Roberto Cavazos, director of CPA global, indicated that in accordance with the third section of article 27 of the new ISR law, even salary payments of more than 2 000 pesos may no longer be made in cash, but must be made through a financial institution.

"The previous ISR law excepted the payment of salary, however with the change to the Federal Labor Law now in the new ISR law they have removed the exception," he explained.

Raúl González, tax attorney at Pérez Góngora and Associates, said that the taxman's requirement that payments be through a financial institution and not in cash, is meant to be able to know the true income and outlay of taxpayers.

"Cash leaves no trace, with cash the authoriities cannot know the lifestyle the taxpayer leads, and cannot track it; on the other hand, if he pays with checks, electronic transfer, or card, yes, they can," he indicated.


Sounds like those not subject to the will and ire of Hacienda don't need to worry about it—and neither will those who don't care if their payments are tax-deductible.

[Edited on 2-7-2014 by dasubergeek]

MitchMan - 2-8-2014 at 12:37 PM

I realized years ago that Mexico handles administrative things extremely poorly and without much humanitarian concern, particularly financial matters. Over the years they have come out with some of the dumbest policies.

Their banking policies and procedures are marooonic, not to mention the punishing tax policies and brash changes from one moment to the next.

It's like the ruling class sends their kids to the best schools in the USA, and when the kids get back, they put them in positions of responsibility with their diploma and no practical experience eager to make policy devoid of proactive thinking, with a bias to furthering their upper class advantages.

No wonder that the disparity of income and wealth is so great in Mexico. The lopsided disparity of wealth is so very bad, that their lopsided disparity is almost as bad as that in the United States! Yeah, that bad! Makes you think...doesn' it?

[Edited on 2-8-2014 by MitchMan]