Business taxes

All fees including hacienda are so cheap it's nutz not to abide by the law and be safe.

oncesubtle wrote:All fees including hacienda are so cheap it's nutz not to abide by the law and be safe.

What's cheap about 35% of the net rent on a furnished place?

I don't know anything about the 35% so let me put it this way, for our 5 apartments we pay 1K pesos per month. That includes the accountant who pays all fees and submits year reports to the fed. He is always available by phone or in person and his staff are experienced. Over the years I've seen many of the B&B owners in his office and in that time have never had so much as a question from the authorities.

There is a 3% state tax on gross earnings. There is no "honeymoon" phase in. You start paying immediately. Federal tax is on net earnings (after deductions). Once you sign up it is 100% tax free for the first year, 90% tax free for the second year, 80% tax free for the third year and so on and so on for ten years. After ten years you pay the full tax rate which won't be anywhere near 35% unless you are making  some serious money. Best to pay your taxes versus risking deportation or property seizure IMO. Never mess with the tax man (just ask Al Capone...jaja).

Yup and we've been legal for just over 10 years with the cost in taxes close to nada and refer to them as our token tax.

BTW........state and federal taxes must be submitted every two months. For simple business's it is easy to go online, fill in your income amount and print out an invoice that can be paid at any bank, OXXO, etc. If you have employees and/or a lot of deductions it is probably best to get an accountant.

It is just peace of mind, I even had authorities come by one of my sales and ask for my paperwork and was confident because I did have it. We even made copies for each vehicle since we are not always at home to have it on hand.

Yep for sure. I even added "work permission" to my permanenta visa.They said I didn't really require it for my casita rental business but they added it and granted approvals anyway.

I had Chapala Law do everything for me to ensure it was done correctly.

Also for those that are able to submit their taxes on their own (via the State & SAT websites) I recommend it as I have heard more than one story where people had been paying their accountant and said accountant wasn't submitting their taxes at all, just pocketing the money. They found out when presented with a huge fine for not submitting.

Yes, pay your business taxes to SAT and IMSS with a banca electronica transfer directly from your business bank account, which I thought was mandatory now.

You can submit both state and SAT online. It let's you print out an invoice to pay at your bank, OXXO, etc. IMSS is only for those businesses that have employees. In my case we have none.

CanuckBob wrote:You can submit both state and SAT online. It let's you print out an invoice to pay at your bank, OXXO, etc. IMSS is only for those businesses that have employees. In my case we have none.

You should pay yourself........ ......so you can

Who would you recommend as an accountant locally ?

Here is a sample calculation I posted on TOB to give you all an example how low taxes can be

Assuming you rent your home for 24,000 pesos a month. You can deduct expenses or get a straight 35% deduction which is 7,700 pesos leaving you with a taxable net of $14,300 pesos which you will pay tax of 1,945 pesos income tax (ISR). You are still clearing 22,000 pesos. There are tiered tax brackets starting at 1.92 percent and rising with income here in this example part is paid at 23.52% tax rate at the highest and the tax rates cap at 35%. You can also write off the property taxes along with the 35%.

This is ISR tax only and if you rent a furnished property then you are liable to pay the 16% IVA tax as well.

IVA technically is paid and collected from the renter and then turned over to the government by the owner/recipient of the rental income, less any IVA paid out in expenses associated with the business.

The rental contract will include the total rent including the IVA, but the facture for reporting rental income will be broken down to separate IVA from income.

Then ISR is computed on the income less the IVA portion.

hickton wrote:Who would you recommend as an accountant locally ?

GL Servicios in Ajijic..... Sonia Guerra and Alejandro Lopez....Contadores Publicos
I will try to get their exact street address and post it later.

I have worked with them for 20+ years with complete satisfaction and know that they know their business and keep up to date on tax laws.

slainte39 wrote:

hickton wrote:Who would you recommend as an accountant locally ?

GL Servicios in Ajijic..... Sonia Guerra and Alejandro Lopez....Contadores Publicos
I will try to get their exact street address and post it later.

I have worked with them for 20+ years with complete satisfaction and know that they know their business and keep up to date on tax laws.

Thanks that would be great.

Pretty sure they're in Ajijic on Nicolas Bravo, between 16th of Septiembre and the Lake, west side about mid-block.

Rosa Venus wrote:Pretty sure they're in Ajijic on Nicolas Bravo, between 16th of Septiembre and the Lake, west side about mid-block.

I think you're right,,,,Nicolas Bravo #31, but I will get the correct address tomorrow and phone numbers.

I checked that address and it looks like a residence. No sign or anything. Were you able to confirm?

I'll try to remember to confirm it today in the office. Yes, it looks like a residence.

I went back there and knocked on the door. Yes, that is the place.

GL Servicio
Nicolas Bravo - 31A
766-1028
766-4326

I was prepared to answer, "Yes, that's it", but instead I'll say, "Yes, that's it."