Capital Gains Tax on the sale of homes in Mexico

Publicado en Martes, 08 Noviembre 2016

If you are selling your home in Mexico it is of the utmost importance to know, before you sign an agreement or offer to sell, how much you are going to pay in Capital Gains Tax (ISR) because this amount is going to be deducted from the price of sale. Before signing a private sales contact or offer, make sure you have a WRITTEN calculation of the Capital Gains Tax from your tax consultant or your notary. Make sure you review the calculation and confirmed with your consultant that there are no other ways to reduce the amount of Capital Gains Tax.


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Tax requirements for payments made to abroad (US) suppliers.

Publicado en Martes, 01 Noviembre 2016

There are two main groups of requirements related to payments to US suppliers. “Formal requirements” are the ones related with the invoice and payment. The second group is called “Substance requirements” and includes the requirements needed to prove that the service exists and that there is not a special treatment between the related parties. 


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Outsourcing: Labor responsibilities vs Exemption payment of VAT

Publicado en Miércoles, 28 Septiembre 2016

Published in Wednesday, September 28, 2016

As an important matter, we would like to comment that recently there were changes in the treatment of Law of value added tax (IVA Law) through jurisprudence) based on an analysis made in labor matters.

The amendment in question applies to Companies (clients) that outsource to another company and is commonly called outsourcing.


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Simulated Activities and EFOS

Publicado en Martes, 15 Septiembre 2015

Published in Tuesday, September 15, 2015

Currently one of the deductions that judge the tax authority (SAT) with more severely is the payment of professional services, because it has been under his criteria a frequent mechanism to tax avoidance, used for deduction of bills paid to assumptions suppliers, and that not exist evidence of having carried any work, that the price at which they are paid far exceeds market value or the supplier who allegedly has provided the service does not have the necessary infrastructure.


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You now need an RFC (Mexican Tax ID) to buy property in Mexico

Publicado en Martes, 09 Septiembre 2014

Published in Tuesday, September 09, 2014

Since Mr. Peña Nieto has taken office at the President of Mexico he has imposed sweeping tax reforms. These reforms are trickling down and making major impacts on the secondary laws, rules and applications in Mexico.

One of the most recent rules is the requirement for all buyers of Mexican real estate to have a Mexican Tax Identification or “RFC” in order to purchase. If a buyer does not have one, the Notary handling the closing will not be able to issue the necessary closing documents and the deal will be delayed until the RFC of the buyer is acquired. In order for a foreigner to acquire an “RFC” the tax law sets out two options:


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