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How to Calculate Income Tax in the General Law Regime (Title II)?
It is important to understand the calculation of the ISR even if we are not accountants, since as professionals or businessmen we have to understand the logic to avoid problems with the SAT. Article 9 of the Income Tax Law (LISR) tells us how companies calculate the ISR.
Permanent Establishment in Mexico: Understanding Tax Obligations for Foreign Companies
If you're a foreign company operating or planning to operate in Mexico, understanding the concept of “Permanent Establishment” (PE) is crucial. This term determines when a foreign business is liable for tax obligations in Mexico. The definition of a Permanent...
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...
