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Permanent Establishment in Mexico: When is a Foreign Company Subject to Tax Obligations?
The concept of a "permanent establishment" is fundamental to understanding when a foreign company must comply with tax obligations in Mexico. In general terms, a permanent establishment refers to any place of business where the activities of a foreign company are carried out.
Small Business Tax Deductions: Tips on the Deductions You Can Take Advantage Of
Small businesses are the engine of the economy and maximising tax relief is critical to their sustainability and growth. Understanding your available deductions will not only help you reduce your tax burden, but can also provide you with the best way to get the most out of your small business.
Understanding Mexican Tax Obligations: Who Needs to Pay Income Tax (ISR)?
Mexico's Income Tax (ISR) is a key tax obligation for both residents and non-residents. However, many foreigners are unsure about whether they are required to pay this tax, especially when they receive income from Mexican sources. This article will clarify the...
Who must pay Income Tax (ISR) in Mexico?
Income Tax (ISR) is one of the most important taxes in Mexico, both for individuals and corporations. But who is required to pay it and in which cases is it applied? In this article we will explain the main scenarios...
Electronic Invoicing in Mexico: A Guide for US Persons
Mexico has developed one of the most sophisticated electronic invoicing systems in the world, known as CFDI (Comprobante Fiscal Digital por Internet). Understanding the requirements around CFDI is crucial for US persons or businesses operating in Mexico, as it plays...
VAT Returns for Foreign Businesses in Mexico
Operating a business in a foreign country can be complex, especially when it comes to understanding local tax regulations. This article aims to clarify the VAT return process for businesses exporting goods from Mexico, focusing on the implications of the 0% VAT rate...
Understanding Invitation Letters from the SAT: A Guide for Foreigners (SAT Invitation Letter)
If you are a foreigner who has received an invitation letter from the Mexican Tax Administration Service (SAT), you may be feeling confused or anxious about what to do next. These letters are usually sent to clarify discrepancies in tax filings or other related...
Taxation in Mexico and the US
In both Mexico and the United States, tax systems share similarities, including progressive income taxation for individuals, the imposition of corporate taxes, and the existence of various deductions and credits. However, a key difference is that Mexico employs a flat...
What to do if you don't receive a VAT refund: Steps to follow
Receiving a VAT refund can be crucial for a company's cash flow. However, in some cases, the refund request may be rejected or problems may arise. If you find yourself in this situation, here are the steps to take to resolve the issue.
Additional documents that the SAT may request in a VAT refund
When requesting a refund of a VAT balance in favor, the Tax Administration Service (SAT) has the power to request additional documents to verify the legitimacy of the request and clarify possible inconsistencies. According to Form 10/CFF Request...
Request for VAT credit balances
One of the main doubts of taxpayers who generate VAT balances in their favor is the time that the authority has to authorize or reject said refund. This process, regulated by law, has certain rules that both individuals and corporations...
Points to consider when opening your accounting firm
Opening an accounting firm is an excellent option for accountants looking to offer professional services independently or as part of a team. In addition to having the necessary technical skills, it is important to take into account certain legal aspects, such as:
The Professional Services Provision Contract
What is a Service Provision Contract? A service provision contract is an agreement between two parties, the service provider and the contractor, in which the former undertakes to carry out an activity or provide a specific service, and the latter undertakes to...
NIF C-9 Provisions, contingencies and commitments
Financial Reporting Standard NIF C-9 establishes the guidelines for the recognition, valuation, presentation and disclosure of provisions, contingent liabilities, contingent assets and commitments in the financial statements. Its purpose is to ensure that the...
NIF C-8 Intangible Assets
NIF C-8, "Intangible Assets", establishes the specific standards for the recognition, valuation, presentation and disclosure of intangible assets in the financial statements. Some key points of NIF C-8 are: 1. Definition...
NIF C-7: Investments in Associates, Joint Ventures and Other Permanent Investments
Financial Reporting Standard C-7 focuses on the accounting treatment of investments in associates, joint ventures and other permanent investments. The key points of this standard are detailed below: 1. Definitions and Scope: The main definitions and scope of the accounting treatment are:
