By Linda Neil
Whether a property owner or just the occasional visitor on a beautiful
beach in Mexico, everyone pays taxes, natives and foreigners. Some of
the taxes are hidden and others are not. The purpose of this article is
to touch on some of the important taxes levied and paid in Mexico.
WHO COLLECTS TAXES: The SAT (Servicio de Administracion Tributaria),
also known as Hacienda, is the federal tax collector. It collects all
federal taxes such as the ISR (Income or Capital Gains) tax, the IVA
(Added Value) tax, the IDE (Tax on Cash Deposits) and the IEPS (Special
Tax on Production and Services). Each state government has its own taxes
such as the 2 to 3 percent tax on lodgings and tourism. The municipal
governments assess and levy taxes on real and personal properties.
IVA TAX: This is the Value Added Tax which is charged on goods and
services. The only exemptions are medicines and food. Often this tax is
INCLUDED in the price of food served in a restaurant, legal services,
and the items purchased in a department or clothing store. The business
owner and tax resident is obligated to file a monthly declaration with
Hacienda and pay the tax on earnings. Credited against this tax are IVA
taxes paid on goods and services acquired.
There is no IVA tax on the sale of vacant land or on the sale of
residential dwellings. The tax is levied on all commercial construction
when it is sold or transferred, at the rate of 16% of the value of
construction, regardless of where the property is located.
IVA tax is charged on lodgings, hotel rooms and furnished homes which
are rented.
As of January 1, 2010, this tax has been increased from 15% to 16% in
the interior of the country and from 10% to 11% in the border zones.
IEPS TAX: This is the Special Tax on Products and Services which is a
new tax for 2010. It will cover certain internet and cable TV services,
alcohol, cigarettes, and gaming.
PROPERTY TAX; This is a municipal tax with… Click Here For Additional
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