In today’s fast-paced business environment, agility in corporate decision-making is essential. Unanimous resolutions outside of formal meetings, as allowed under Mexico’s General Law of Commercial Companies (Ley General de Sociedades Mercantiles – LGSM), provide a powerful and efficient tool for companies operating in Mexico....
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In recent years, the Servicio de Administración Tributaria (SAT) in Mexico has intensified its scrutiny of business transactions, placing special emphasis on the concept of Materialidad de las Operaciones (Materiality of Operations). This principle is crucial for companies and individuals conducting business in Mexico, as failing to provide sufficient proof of the legitimacy of transactions can lead to severe tax consequences....
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There appears to be some confusion as to what needs to be reported to the IRS by US citizens owning property in Mexico. Some US based accountants and tax preparers provide contradictory information and instructions to their clients. ...
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According to foreign investment laws in Mexico, foreign investors may hold 100% of a Mexican corporation or partnership. The legal system and tax laws do not discriminate between foreigner business and Mexican National owned businesses. One thing that separates foreign-owned corporations and Mexican owned corporations are the activities they may carry out. Foreign investment is permitted in most sectors except for those activities listed below. Sectors reserved for the Mexican State Oil and other hydrocarbons exploration and extraction Sale of electricity to the public Nuclear power Radioactive minerals Telegraph and radiotelegraph services Postal services Printing money and coin minting Control, supervision, and...
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Real estate transactions in Mexico typically involve a profit for the seller, and on that profit, the seller is expected to pay capital gains tax. The tax is classified as ISR (Impuesto Sobre la Renta) and applies as an income tax. Whether you are a foreigner or Mexican national, you will be subject to this tax. However, an experienced Mexican accountant can assess your situation and find the best way to reduce or avoid the capital gains tax. Before you complete the sale of your property, you are advised to seek the advice of an accountant in Mexico. The assessment...
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