In this article, I explain what a CFO does, how they differ from other executives, the benefits of having one (or hiring one as an external service), and the consequences a company can face if it doesn't pay attention to its finances. If you're in Guadalajara and are growing your company, this article will interest you.

What does a CFO do?

The CFO is responsible for the financial health of the business. His or her duties include:

• Oversee accounting, treasury, budgeting, and compliance with tax obligations.
• Design the short, medium and long-term financial strategy.
• Protect the company through financial risk management.
• Establish internal controls and processes that ensure the proper use of resources.
• Generate clear financial reports for decision-making.
• Attend internal and external audits.
• Represent the company before banks, investors, tax authorities, and strategic partners.

What is the profile of a CFO?

A CFO typically has a background in accounting, management, economics, or finance. They also commonly hold postgraduate degrees or specialized certifications (such as IFRS, NIF, CPA, CMA, etc.). His experience ranges from tax and accounting issues to strategy, financial modeling, budget control, and team management.

How is a CFO different from a CEO or COO?

• CEO (Chief Executive Officer): is the CEO. He or she defines the general direction of the business, makes key decisions, and represents the company at an institutional level.
• CFO (Chief Financial Officer): is in charge of finances. His role is to analyze, plan, and control everything related to financial resources.
• COO (Chief Operating Officer): is the chief operating officer. He oversees the day-to-day execution of the business, from production to logistics and fulfillment.

Benefits of having a CFO in your company

Having a CFO, whether internal or through the "CFO as a Service" model, has concrete benefits for the stability and growth of your company:

• Informed decision-making based on real reports.
• Cash flow control to ensure daily operations.
• Tax planning that reduces risks with the SAT.
• Preparation for investors, banks or international expansion.
• Profitability analysis by product, customer or sales channel.
• Preventing financial crises through control and monitoring.
• Reduction of fraud, errors and money leaks.

What happens when a company doesn't pay attention to its finances?

Many growing companies, especially in cities like Guadalajara, focus on sales, production, or hiring, but neglect finances. The consequences can be serious:

• Lack of cash flow awareness: They sell well, but they don't have any cash available.
• Tax Administration Service fines, blocking of digital seals, or audits due to lack of fiscal control.
• Not knowing if the business is really profitable.
• Inability to access credit or raise investment.
• Poorly calculated prices and poorly defined margins.
• Total dependence on the accountant without strategic financial vision.

What is a CFO as a Service?

It's a flexible model that allows you to hire an external CFO on an hourly, project-based, or monthly basis, without having to add them to your payroll. This is ideal for small and medium-sized businesses that require strategic financial direction but can't (or don't want to) assume the fixed cost of a senior executive.

At Tax ID Mexico, based in Guadalajara, we offer the service CFO as a Service for companies that need to take control of their finances, prepare for growth, and meet all their obligations in an orderly and strategic manner.

Are you ready to take the next step?
Contact us to schedule a diagnostic session and find out if your company is financially prepared for the future.

La entrada ¿Qué es un CFO y por qué tu empresa necesita uno? se publicó primero en TAX ID.

What are the elements of cost?

There are three essential elements that make up the production cost:

1. Direct raw material

It's the material that can be directly identified in the final product. For example, in the manufacture of a chair, wood would be a direct raw material, as it is part of the finished product.

2. Direct labor

These are the wages and salaries of the personnel directly involved in the processing of the product. In our chair example, this would be the salary of the carpenter who cuts, sands, and assembles the chair.

3. Manufacturing costs or indirect charges

These are costs that cannot be directly associated with a single product but are necessary for the production process. They include:

• Salaries of maintenance or supervisory staff.
• Electrical energy used by machinery.
• Depreciation of equipment and buildings.
• Nails, glue, and paint, which are used in small, unidentifiable quantities.

Case study: "Maderas Finas" chair factory

Suppose the company Fine Woods SA de CV manufactures wooden chairs and wants to calculate its monthly production cost. Here's the data:

Classification of cost elements:

The total manufacturing cost is $115,000.

Why is it useful to identify these elements?

• To establish actual sales prices, considering not only the material, but all associated costs.
• To improve profitability, by identifying which part of the process is most expensive.
• To prepare industrial financial reports, like the Production and Sales Cost Statement, mandatory in manufacturing companies.

Conclusion

The cost elements They are a fundamental tool for the financial management of any productive company. Knowing how to correctly classify direct raw materials, direct labor, and manufacturing costs allows for better decision-making, realistic budgeting, and effective control over business profitability.

Would you like us to help you design an Excel format to calculate your production cost? Tax ID Mexico We can help you customize it for your industry.

La entrada Elementos del Costo: Guía práctica con un caso aplicado se publicó primero en TAX ID.

What are transfer prices?

Transfer prices are the values assigned to commercial or financial operations between related partiesThese operations may include:

• Purchase and sale of goods
• Provision of services
• Granting of loans
• Assignment or use of intangibles

The guiding principle is that These transactions must be valued as if they were carried out between independent parties under comparable conditions., which is known as the Principle of Arm's Length (article 179 of the LISR).

Legal basis in Mexico

The regulation on transfer pricing in Mexico is found in the Articles 179 to 180 of the LISR, and considers the following key aspects:

• Transactions must be valued according to one of the five established methods in Article 180.
• A must be made functional and economic analysis of the parties involved.
• Supporting documentation must be kept and made available to the authority.

In addition, the Article 76, Section IX, establishes the obligation for legal entities to have supporting documentation that demonstrates that transactions with related parties were carried out in accordance with market prices.

In the case of taxpayers who exceed certain income or asset thresholds, the obligations of the Article 76-A, which include the filing of information returns:

• Local Information Declaration
• Master Information Statement
• Country by Country Declaration

Consequences of non-compliance

When the authority detects that operations between related parties do not comply with the arm's length principle, it may carry out fiscal adjustments that increase the taxpayer's tax base. This may result in:

• Determination of tax credits
• Fines and surcharges according to the Federal Tax Code
• Risk of double taxation in international operations

Key Considerations for Taxpayers

1. It is not optional: Having a transfer pricing study is mandatory if transactions are carried out with related parties, even if they are only domestic, when certain thresholds are exceeded.
2. Must be updated annually: Especially if the economic conditions or the roles of the parties change.
3. It is part of tax compliance: Failure to have this study may result in sanctions and adjustments by the SAT.
4. It must be technically supported: Include comparables, justification of the method applied and economic analysis.

Recommendation

Any company that conducts transactions with related parties must consult with experts in the field and prepare its transfer pricing documentation in advance. This responsibility is not limited to multinational companies; Even transactions between partners, family businesses or national groups of companies may be subject to review.

La entrada ¿Qué son los Precios de Transferencia y por qué deben considerarse en México? se publicó primero en TAX ID.

The answer lies in the analysis of the Return on Investment (ROI)This indicator allows you to assess whether an investment in fixed assets will generate the expected benefits relative to its cost. Below, we explain how to calculate it, what factors to consider, and when it may be a strategic decision.

What is ROI?

The Return on Investment It measures the efficiency of an investment, expressing the percentage of profit (or loss) relative to the amount invested. Its basic formula is:

How does this apply to the PP&E case?

When we talk about PP&E, the return is not always immediate, but rather spread over time. Therefore, instead of a simple immediate benefit, estimates are usually made future cash flows that this asset will generate or save.

Example:

Suppose you buy a machine for $1,000,000 pesos and it is expected that:

• Reduce production costs by $250,000 pesos per year,
• Have a useful life of 5 years,
• And in the end it can be sold as scrap for $100,000 pesos.

So:

Estimated total net profit =
($250,000 × 5 years) + $100,000 = $1,350,000

Initial investment = $1,000,000

ROI = (1,350,000 / 1,000,000) × 100 = 135%

This means that, in 5 years, the company not only recovers its investment, but also earns an additional 35%.

Key factors to consider

Before deciding on a purchase, take into account:

1. Recovery time: How long does it take to recover your investment?
2. Accounting and tax depreciation: The asset's value is decreasing. This affects your financial statements and taxes.
3. Financing: If purchased on credit, the financial cost must be included.
4. Maintenance and operation: Some assets require recurring expenses.
5. Obsolescence: Can it be used efficiently throughout its useful life?

When is it a good idea to invest in PP&E?

• When it significantly reduces your operating costs.
• When your production capacity or income increases.
• When it gives you independence (for example, stopping renting machinery).
• When your competitiveness or product quality improves.

What if it's not a good time?

Not all PP&E purchases are strategic. If the estimated ROI is low, if the asset will be underutilized, or if it severely compromises your cash flow, it's better to wait or look for alternatives (leasing, manufacturing, renting, etc.).

Conclusion

Investing in property, plant, and equipment can be an excellent decision for growing your business, provided it's done with a solid return on investment analysis. ROI not only helps you justify decisions, it also allows you to plan more confidently for the business's financial future.

Before buying, Do the numbers, project scenarios, and make decisions with strategic vision.

La entrada ¿Vale la pena invertir en activos fijos? ROI en la compra de Propiedad, Planta y Equipo se publicó primero en TAX ID.

Who is Considered a Tax Resident in Mexico?

According to Article 9 of the Mexican Tax Code, an individual is considered a tax resident in Mexico if they meet any of the following conditions:

1. Primary Home in Mexico – If you have established your primary home in Mexico, you are considered a tax resident.
2. Center of Vital Interests in Mexico – If you also have a home in another country, you will still be considered a tax resident in Mexico if your center of vital interests is located in the national territory. The center of vital interests is deemed to be in Mexico if:
   • More than 50% of your total income in a calendar year comes from Mexican sources.
   • Your main center of professional activities is within the country.
3. Mexican Government Employees – Mexican nationals who are government officials or employees are considered tax residents, even if their center of vital interests is abroad.
4. Presumption of Residency – Unless otherwise proven, individuals of Mexican nationality are presumed to be residents in Mexico.

Implications of Being a Tax Resident in Mexico

Once you are classified as a tax resident in Mexico, you are required to pay income tax on your worldwide income, regardless of the country where the income is generated. This means that if you earn income abroad, it must still be reported and taxed in Mexico, although tax treaties may help prevent double taxation.

Obligations for Tax Residents in Mexico

• Annual Tax Returns: As a tax resident, you must file an annual income tax return with the Mexican tax authority (SAT – Tax Administration Service).
• Tax on Worldwide Income: You must declare all your earnings, including those derived from foreign sources.
• Foreign Tax Credits: If you pay taxes abroad, you may be able to apply foreign tax credits to avoid double taxation, depending on applicable tax treaties.

Final Thoughts

Understanding tax residency in Mexico is essential for foreigners who live, work, or conduct business in the country. If you meet the criteria for tax residency, you are subject to taxation on your worldwide income. However, tax treaties and proper tax planning can help manage your obligations efficiently.

If you need assistance determining your tax status or fulfilling your obligations, it is advisable to consult with a tax professional experienced in international taxation and Mexican tax law.

Contact Information for Specialized Assistance

For expert tax advisory services, feel free to contact us:

Tax ID Mexico
 Office Address: Eca Do Queiros 5147, Zapopan, Jalisco, Mexico
E-mail: hgalicia@taxid.mx
Phone: +52 3310235948
Website: www.taxid.mx

We specialize in tax advisory services for foreigners in Mexico, helping you navigate tax obligations, compliance, and planning strategies to optimize your financial situation.

La entrada Understanding Tax Residency in Mexico for Foreigners se publicó primero en TAX ID.

In this article, we explore how RESICO works for foreigners, who can benefit from it, and how to comply with tax obligations in a simple way.

What is the Simplified Trust Regime (RESICO)?

The RESICO It is a tax regime in Mexico designed for individuals with annual incomes of less than $3.5 million Mexican pesos (approximately $205,000 USD or €190,000 EUR)It is characterized by its simplified structure and low tax rates, making it an attractive option for self-employed foreigners.

Main benefits of RESICO:

• Low tax rate: Depending on the income level, the ISR rates range from 1% to 2.5%, significantly lower than in other regimes.
• Pre-filled declarations: The SAT (Tax Administration Service) pre-fills your returns, reducing the administrative burden, however this information must be verified against internal records.

Who can benefit from RESICO?

This regimen is ideal for Foreigners residing in Mexico and generate income independently. Some profiles that can take advantage of it include:

• Digital nomads: Professionals who work remotely for clients abroad.
• Freelancers and consultants: Designers, programmers, writers, coaches and consultants who provide online services.
• Digital Entrepreneurs: People who sell products or services through their own online store (does not apply to Amazon, MercadoLibre, etc.).
• Short-term rental property owners: Foreigners who rent properties on Airbnb and other platforms, especially in areas such as Guadalajara and Zapopan, where the real estate and tourism market is growing.

How to register with RESICO as a foreigner?

To register with RESICO as a foreigner, it is necessary to meet certain requirements:

1️.-RFC (Federal Taxpayers Registry): If you are a foreigner and have a tax residence in Mexico, you can request it from the SAT.

2️.- CURP: You must have a Unique Population Registry Code (CURP), which is obtained when processing temporary or permanent residency.

3.- Tax domicile in Mexico: You need a registered address within the country.

4.-Electronic signature: To issue digital tax receipts (CFDI) and declare income.

Tax obligations under RESICO

• Submit monthly returns of ISR and VAT with the corresponding tax rate.
• Issuing electronic invoices to national and international clients.
• Make tax payments in a timely manner to avoid sanctions.
• Not exceeding the annual income limit of $3.5 million pesos (approximately $205,000 USD or €190,000 EUR), otherwise it is necessary to change the regime.

Conclusion

The Simplified Trust Regime (RESICO) It is an efficient and accessible tax option for foreigners working in Mexico, especially those who operate independently in destinations such as Playa del Carmen, Tulum, Guadalajara, Zapopan or Mexico City.

If you are a freelancer, digital nomad or foreign entrepreneur and you want to operate legally in Mexico with low taxes and few complications, RESICO could be the best option for you.

Consult with our experts!

If you need help registering for RESICO, understanding your tax obligations, or finding the best strategy to pay less taxes in Mexico, Contact us today.

Telephone: +52 1 33 3468 4172

Email: hgalicia@taxid.mx 

Visit our website: www.taxid.mx

Home: C. Eca Do Queirós 5147University Gardens, 45110 Zapopan, Jal.

Request a free consultation and ensure you comply with tax regulations without complications.https://taxid.mx

La entrada Régimen Simplificado de Confianza (RESICO) para Extranjeros en México se publicó primero en TAX ID.

In this article, we explain the tax regimes that may suit you, how to open a company, Simplified Stock Company (SAS) and why having specialized tax advice is key for foreigners in Mexico.

What does it mean for a foreigner to have an RFC in Mexico?

The Federal Taxpayer Registry (RFC) It is essential to carry out legal economic activities in Mexico. Having an RFC implies:

• Tax obligations: Depending on the tax regime you choose, you may have to file monthly and annual returns with the SAT.

• Access to tax benefits: You can deduct expenses, invoice legally and optimize taxes according to your activity.

• Compliance with regulations: You avoid sanctions or tax problems that could affect your immigration status or investments.

Tax regimes for foreign individuals

Depending on your type of activity, you can choose between different tax regimes in Mexico:

• Simplified Trust Regime (RESICO): Ideal for small business owners with annual revenues of less than $3.5 million pesos. It offers reduced tax rates and a lower administrative burden.

• Business and Professional Activity Regime: There is no income limit and it allows the marketing of articles, manufacturing and other services. It is ideal for freelancers, consultants, merchants and companies that want to operate independently in Mexico.

• Leasing Regime: If you own properties in Mexico and wish to rent them legally, this regime allows you to comply with your tax obligations.

Each regime has specific requirements and different benefits, so having tax advice is key to making the best decision.

Creating a SAS for foreigners: a viable option?

If you want to operate a business in Mexico without local partners, the Simplified Stock Company (SAS) is an excellent option. Some benefits include:

• 100% digital: You can set it up online without having to go to a notary.
• No partner required: Unlike other companies, you can open it as a sole shareholder.
• Limited liability: Your personal assets are protected in case of debt or legal problems.

To establish a SAS as a foreigner, it is important to verify immigration restrictions and comply with SAT requirements.

Specialized tax advice for foreigners in Mexico

If you are a foreigner and need support to manage your tax situation in Mexico, our accounting firm offers you:

• RFC Registration and Update
• Tax returns and tax payments
• Electronic billing
• Advice on investment and opening of companies
• Tax optimization and savings strategies

We work with foreigners to ensure that they comply with their tax obligations without complications.

Testimonials from foreign clients

• «I cannot recommend TaxID highly enough for anyone looking to establish a foreign company in Mexico. Their team has been incredibly efficient and knowledgeable in navigating both Mexican and foreign regulations, ensuring everything was handled with precision and care. The staff is not only highly skilled but also friendly and always willing to go the extra mile to help. What truly sets them apart is their unwavering integrity, which gave us complete confidence throughout the entire process. If you need reliable,» – Ralph Kaiser 

• «Excellent service from the accounting team. They are always attentive, do everything correctly and on time. They provide support and explanations as needed throughout all processes. « – Anastasia Perevozchikova

Schedule a consultation with our tax experts in Mexico

If you are a foreigner and want to optimize your tax situation in Mexico, contact us for personalized advice:

Telephone: +52 33 3468 4172
Email: hgalicia@taxid.mx
Visit our website: www.taxid.mx

Request a free consultation and discover how we can help you operate legally in Mexico without tax concerns.

La entrada Asesoría Fiscal para Extranjeros en México: Regímenes Fiscales se publicó primero en TAX ID.

1.Do foreigners have to register with the RFC?

According to RMF 2025, foreigners who need to register in the RFC can be:

• Residents in Mexico with regular stay (temporary or permanent).
• Foreign persons who will carry out economic activities in Mexico, including:
  • Those with work permits.
  • Individuals who will open a business or become partners in a company.
• Foreign minors with legal representatives, who may be registered in the RFC by their guardians or parents.
• Foreign persons who require the RFC to comply with specific tax obligations, such as real estate investments or bank accounts.

Depending on your immigration status and the activity you will be carrying out, the required documents may vary.

2. General Requirements for Registration in the RFC for Foreigners

To register for the RFC, you need to schedule an appointment on the SAT portal (https://citas.sat.gob.mx) and present the following documents at the SAT office:

Current immigration document (according to Annex 1A of RMF 2025):

• Visitor card for humanitarian reasons.
• Temporary resident card.
• Permanent resident card.
• Frontier Worker Visitor Card.

Proof of address in Mexico (according to Annex 1A of RMF 2025):

• Electricity, water, telephone bill or lease agreement.
• In the case of Mexicans by birth residing abroad, the Third Generation Consular Registration can be presented.
• Other accepted documents in Annex 1A.
• Some proofs of address do not need to be in the taxpayer's name, which facilitates the process for foreigners who do not yet have property or contracted services in Mexico.

Instrument to accredit legal representation (if applicable):

• Notarial deeds with witnesses and signatures ratified before a notary public.

For foreign minors, the following is also required:

• Birth certificate of the minor, issued by the Civil Registry or equivalent document from the country of origin.
• Current official identification of the father, mother or guardian who acts as legal representative.
• Document proving parental authority or guardianship, if the child is not the parents.

3. RFC for Foreigners Without a Work Permit

If you have Temporary residence without a work permit, the SAT can give you an RFC, but with restrictions:

• You cannot issue invoices or carry out economic activities.
• It is mainly used to open bank accounts or declare investments in Mexico.

If you later want to operate a business or invoice, you will need to change your immigration status to a Temporary Residence with a Work Permit.

4. RFC for Foreigners with Work Permit

If you have Temporary Residence with Work Permit and you are going to carry out an economic activity in Mexico, you can obtain an RFC as a natural person with business activity. This will allow you to:

• Issue invoices.
• Open a business.
• Register employees.
• Comply with tax obligations in Mexico.

In addition to the general requirements, you will need to provide:

• Certificate of Employer Registration (CIE) if you will be hired by a company.
• Articles of incorporation and RFC of the company if you are a partner in a business.

5. Conclusion on the RFC for foreigners

Registration for the RFC for foreigners in Mexico depends on their immigration status and the activity they wish to carry out. If you are a resident without a work permit, you can obtain an RFC for limited tax purposes, but if you wish to start a business or work, you must change your immigration status before registering as an active taxpayer.

If you need advice on the process, in Tax ID Mexico We can help you manage your RFC registration and guide you in opening a business in Mexico.

Contact us: hgalicia@taxid.mx +52 3310235948

La entrada Inscripción al RFC para Extranjeros en México: Guía Basada en la RMF 2025 se publicó primero en TAX ID.

What does Amazon's investment in Mexico entail?

The investment announced by Amazon aims to establish a advanced data center which will allow us to offer cloud services, data storage and artificial intelligenceThis digital region will be key for companies, startups and government entities that require access to cutting-edge technological solutions.

According to the company's plans, this infrastructure will improve connectivity and data security, as well as reduce operating costs for businesses that use AWS in the region. It is expected that this initiative will generate 7,000 jobs annually and that the investment contributes to $10 billion to GDP of Mexico in the next 15 years.

Querétaro: A Strategic Technology Hub

The choice of Querétaro as the headquarters of the new AWS data center is no coincidence. The entity has consolidated its position as one of the main technological hubs in Latin America due to its infrastructure, access to specialized talent and strategic location in the center of the country. In addition, Querétaro is already a key point for the installation of data centers of international companies, which reinforces its attractiveness for investments of this magnitude.

The Impact of Amazon in Mexico

Since his arrival in Mexico in 2015Amazon has played a key role in the country's digital economy. The company has made investments of more than 110,000 million pesos and has contributed significantly to job creation with more than 10,000 direct jobs Y 40,000 indirect jobs.

Amazon has 13 shipping centers, 24 delivery stations and a corporate office in the country, which has allowed it to expand its logistics reach and improve its delivery times for Mexican consumers. With the new investment in AWS, the company reinforces its commitment to digitalization and the economic development of Mexico.

Conclusion

The arrival of the new digital region of AWS in Querétaro represents an opportunity for the technological and economic growth of the country. This investment will allow Mexican companies to access advanced cloud services, foster innovation and strengthen Mexico's competitiveness in the digital field. With this move, Amazon not only expands its presence in the country, but also places Mexico in a privileged position within the global digital economy.

This is undoubtedly great news for the Mexican technology ecosystem and a reflection of the potential that the country offers for high-impact foreign investments.

If you want to invest in Mexico, contact us

La entrada Amazon Refuerza su Presencia en México con Inversión de 5,000 Millones de Dólares se publicó primero en TAX ID.

Responsive and Custom Design

The new portal features a responsive design that adapts to mobile devices, allowing users to access their procedures from anywhere. Upon entering, users can select their type of taxpayer—whether an individual, company, new taxpayer, or resident abroad—which filters and displays only the information and procedures relevant to their profile.

sat.gob.mx

Simplified Navigation

The structure of the portal has been organized into key sections for easier navigation:

1. Taxpayer Type Menu: Allows you to choose the corresponding profile, filtering the contents according to the selection.
2. Seeker: It offers a simple search with predictive results and an advanced search that allows you to define the type of taxpayer, regime or type of information to locate the desired content.
3. Submenu of Regime: Available for individuals and companies, it allows customization by a specific regime, showing only the corresponding procedures and services.
4. Quick Access Menu: Facilitates one-click access to sections such as home, news, calendar, regulations, contact, guidance and help.
5. Tax Mailbox Button: To log in to the Tax Mailbox.
6. Main Navigation Menu: Allows you to quickly locate the contents of interest, displaying submenus with the most used ones according to the regime or type of taxpayer selected.
7. Central Panel: Provides relevant information on the type of taxpayer or regime selected, with direct access to the most relevant content. sat.gob.mx

Access to Procedures and Services

The portal classifies procedures and services according to the user's needs, such as filing, invoicing or requesting a refund. In addition, the regulations are presented in an organized and accessible manner.

sat.gob.mx

Tax Mailbox

When logging into the Tax Mailbox, the system identifies the regimes to which the taxpayer belongs and displays only the applicable procedures or services, personalizing the experience according to their specific needs.

sat.gob.mx

With these improvements, the SAT seeks to simplify and streamline the interaction of taxpayers with the tax administration, promoting voluntary and timely compliance with tax obligations.

La entrada Nuevo portal del SAT 2025 se publicó primero en TAX ID.