dad just said... this tax is not over income, its over every single cash deposit... the exceeding of 25,000 pesos, no matter where it comes from... as long as you pay taxes there is no problem cuz u end up getting it back in some sort of way... itd be a problem if you (or jannet) didnt pay taxes, that would be money that Hacienda would just keep... i should think better before i actually turn into an accountant hahahaha
It is not necessarily an income tax it is just another tax. Everyone has to pay IVA for example. As RG mentions, Mexico is one of the countries with the lowest level of tax collection in the world. Here is an interesting comparison of tax revenue as a part of GDP http://en.wikipedia.org/wiki/List_of_countries_by_tax_revenue_as_percentage_of_GDP Everyone wants more the "government" to provide more goods and services but no one wants to pay for them. Not too different anywhere in the world. What is different is that people--for some good historical reasons and other reasons just to justify non-payment--don't trust the government to use the tax money wisely. Seems to be a worldwide epidemic of that lately. But in other countries, mechanisms are in place to make you pay whether you agree with the government's spending policies or not. In Mexico the mechanisms don't currently exist but as the government realizes that the "black gold, Texas tea" cannot continue to fund all of the necessary social programs of the country like roads, schools etc., they need to find other sources of revenue and, like most governments, they look to EFFECTIVE collection of taxes. Since most or many companies automatically deposit an employee's wages in his or her bank account for fiscal reasons now, this is a form of taxation that they felt they could impose painlessly--as if there is such a thing. The only thing that really works in Mexico is IVA/VAT. Pay it when you buy. The next step will be to impose IVA on more goods such as medicine and some foods not currently taxable. But that's another boring topic.
Morning everyone, Just a quick question - maybe I missed something - if you only pay the 2% on cash deposits over 25k what it to stop you standing in front of the cashier with a million pesos and saying "hi i want to deposit 24,000 pesitos" then after that transaction is done just repeat the process - until all your money is deposited. :?: I'm also interested in the fees/taxes issue for an international transfer from England - keep me posted on that if you find out anything??
I've wired money here a few times and I think it was in the neighborhood of about $30 USD to receive the money and my bank back home charged something less than that. For the amounts we moved (always over $10,000 USD) the bank fees were way, way less than 2%.
& of'course all of the businesses that this affects are going to pass that 2% on to the consumer on top of the already crazy inflation...
yeap... within a months time... the other option is having bank accounts on every single bank and deposit up to 24,999 pesos in each bank...
It's only for CASH transactions. If you wire money into your account and take it out via ATM, it doesn't affect you. I know of one person that thought it was if you had more than a certain amount of money in your account, so they started emptying a big account by pulling cash out (at the teller window) and moving it into other family members accounts, thus placing them into the target market. The banks all have an information brochure regarding the tax and who it affects and yes, you get to deduct it from your other taxes. It just a money laundering measure - to try to get people to use more electronic transactions that are traceable at both ends of the transaction, rather than cash one that the government only sees one side of the transaction.
Citizenship has nothing to do with it. If you are a permanent resident in Mexico, you have to pay taxes in Mexico on your worldwide income. If you're unlucky enough to have been born in a country that insists of taxing you as a citizen for life, no matter where you live (eg USA), you have to pay taxes in both countries. Luckily there are tax treaties that allow you to claim a credit on tax paid in one country against your tax bill in the other. So if for instance you are required to pay of 25% of your worldwide income to the IRS and the Hacienda wants 18% of your worldwide income, you can either pay the full 25% to the IRS and show the hacienda the receipt, or pay 18% to the Hacienda, and pay the IRS 7% and show them the Hacienda receipt for the other 18%.
Article in the other days papers says they collected 30% less last year than expected by this tax method. It isn't working so expect lots of changes. People just don't deposit--DUH! Seems the govenrment is just as unhappy with the program as you are! What you pay is also not as deductible or creditable to future tax declarations as previous schemes like fixed asset taxes, etc.
