Income Taxes for Expats

Has anyone researched the pros and cons of one Visa versus another with respect to how it affects us with regard to paying Mexican taxes? If so, could you share your thoughts.

No difference as far as I know .... only if you are working here

in other words you pay your income tax as required to your country of origin. you pay mexican income tax on the money you earn in mexico, including on rental property but as a canadian you don't pay to canada if you have been taxed by mexico for income generated in mexico. i can only speak as a canadian and canada has a tax treaty with mexico.
what visa you have makes no difernce.

The name of the type of visa does not matter as much as your residence for tax purposes based upon where your center of activity is and where you live for the most time as well as your source of income and international tax treaties.

I believe there are different rate structures for different types of corporations (if you are employed by one), such as S.A., S. de R.L. de C.V., S.C., etc.
Best to check with a C.P. who files and pays the SAT through Hacienda as their regular business. Legal deductions are constantly changing.
Retenciones (with holding) has to be filed and paid every month by your employer or by yourself if you are a sole proprietor.

OK, here is a twist. I plan to move to Ajijic as a Permanente in June 2015. After that, I might be able to arrange a long-term but part-time job entirely online for a Canadian employer. The employer will insist on paying me as a casual employee in their payroll system, complete with tax deductions. I suspect I'll have to be considered a "tax resident" of Canada for the purpose of the Canada Revenue Agency. Do I submit a return and pay tax to Mexico as well?

farndale wrote:OK, here is a twist. I plan to move to Ajijic as a Permanente in June 2015. After that, I might be able to arrange a long-term but part-time job entirely online for a Canadian employer. The employer will insist on paying me as a casual employee in their payroll system, complete with tax deductions. I suspect I'll have to be considered a "tax resident" of Canada for the purpose of the Canada Revenue Agency. Do I submit a return and pay tax to Mexico as well?

no and your description is not a twist

Canadians over 65 tax

Targeted Tax Relief for Seniors ...It's gone up since the last time I checked.

In 2013, a single senior can earn at least $19,892 and a senior couple at least $39,784 before paying tax.

Ignore all the Mexican tax issues if you work online. I've done a Canadian real estate company listing Mexico properties and Google Adsense for years and it's NOB income. That is all

farndale wrote:OK, here is a twist. I plan to move to Ajijic as a Permanente in June 2015. After that, I might be able to arrange a long-term but part-time job entirely online for a Canadian employer. The employer will insist on paying me as a casual employee in their payroll system, complete with tax deductions. I suspect I'll have to be considered a "tax resident" of Canada for the purpose of the Canada Revenue Agency. Do I submit a return and pay tax to Mexico as well?

You pay taxes to Canada but one has to go over the tax liability to Canada. You should be taxed at the non-resident rate(s) for your Canadian earnings if your total income warrants.

Can anyone recommend a local person with up to date knowledge in Canadian tax preparation?

Fig wrote:Can anyone recommend a local person with up to date knowledge in Canadian tax preparation?  

I have been doing Canadian Taxes professionally for the last 25 years, the last 5 of which are NR returns here in Mexico. Is that current enough?

Sent you a PM Dave.

US taxpayers who want to opt-out of ObamaCare don't forget to file an 8965 so you are fined for not joining up.

Here is a hypothetical (kind of) question. If I live in Mexico and buy and sell pesos and US dollars online with a US account, whom would the taxes be paid to...? Mexico or the US?

tictoc wrote:Here is a hypothetical (kind of) question. If I live in Mexico and buy and sell pesos and US dollars online with a US account, whom would the taxes be paid to...? Mexico or the US?

US

I'm sure I read a thread on here from a Canadian(s) who had not received their NR4s from the Canadian Government although I can't find the thread now. On assembling my tax receipts, I noticed that I also did not receive an NR4 for OAS contributions. Any suggestions on how to proceed? I hesitate to try to phone Service Canada at the end of April as I'm sure I'd be put on hold for hours.

Irish Gal wrote:I'm sure I read a thread on here from a Canadian(s) who had not received their NR4s from the Canadian Government although I can't find the thread now.    On assembling my tax receipts, I noticed that I also did not receive an NR4 for OAS contributions.   Any suggestions on how to proceed?  I hesitate to try to phone Service Canada at the end of April as I'm sure I'd be put on hold for hours.    

that was me and we got the t4 # over the phone so we could finish.

here is the # at oas to call-613-990-2244 to get your t4 $'s as per. and then attach a note that you did not receive the t4. certain designations have until june 30 to send in. i don't know what they might be so ask.
we now file under a new designation called "deemed resident" of canada whereas before we were a "factual" resident of alberta
the office hours are 8:30-4:30 eastern time.

Thanks. I'll call them. We're non-residents of Canada. What is the difference between "deemed" and "factual" residents? Just curious.

Irish Gal wrote:Thanks.   I'll call them.    We're non-residents of Canada.   What is the difference between "deemed" and "factual" residents?   Just curious.  

"Factual resident" is just what it sounds like. Someone who is a resident of Canada for at least 6 months of the year. (there are other factors, but that is the simple definition).
"Deemed resident" is someone who is considered a "factual resident" for tax purposes.

Thanks for the explanation.

zenwoodle wrote:

Irish Gal wrote:Thanks.   I'll call them.    We're non-residents of Canada.   What is the difference between "deemed" and "factual" residents?   Just curious.  

"Factual resident" is just what it sounds like. Someone who is a resident of Canada for at least 6 months of the year. (there are other factors, but that is the simple definition).

wrong-we were designated "factual residents of alberta" after we became permanent residents of mexico for taxation purposes only. namely to pay income tax as if[but didn't] live in alberta[you pay income tax federally and as per the province you left]. not the flat tax of 15% on all income as a none resident for tax purposes.the latter designation means you cannot claim medical expenses or other exemption no mo. this deemed resident of canada thing is new to us this year. there is the form for federal tax and as mi esposa our tax doer says, another form to be fill for "i don't know what".

Pedro, my husband and I have both been "non-residents" of Canada for taxation purposes effective January 2006. I've been claiming medical expenses every year since then (at least every year that I've had sufficient receipts).

hmm! i wonder if you aren't being designated as factual. we didn't go the 15% thingy because we were told that you get charged the straight 15% and not able to deduct anything. maybe davep who does people"s taxes can wade in on this.
we've been factual since 2006.
as factual we get the standard exemption that all albertans get. yvonne's teacher pension is paid to her with a hold back of 15% and she gets a refund every year even without the med stough.

We're definitely classified as non-resident Canadians for tax purposes. I take the medical deductions for both of us.