Can anyone tell me the amount or % of tax that is taken out of a "paycheck" (like an income tax) here? Is it a flat % for everyone or are there different levels.
I believe it's 3 percent. Seems that's what I pay in ISR after IVA is subtracted from my rental income. The accountant has the ledger at the moment...
My ISR seems to be about 23% of my base salary, or 14% of my salary and benefits combined. When I get a bonus, they take out 23% of that as well.
Seem like I'm paying about 17% income tax on my regular pay check, plus additional deductions for IMSS. This seems to be about right Mexico Tax Rates
The system here, like that of many countries, is complex. Local accountants know many ways to reduce taxes- I'm speaking of legitimate ways- so that many people end up paying an amazingly small part of their "wages" in taxes. Because of how various parts of my salary are categorized- for example, compensation categorized as "cost of living adjustments" (sums paid to equalize living expenses across the nation, with Cancun being one of the more expensive cities in Mexico)- and therefore exempt from taxation, I end up paying only about 5% of my income in taxes.
Hey V, Am I right in thinking that you do your own taxes via an accountant then and the university you work for hire you on contract work or something along those lines? The company I work for do all my taxes etc. and I'm losing 20% some months - I'd like to get that down to 5% as well!
Mat, those comments in my previous post were limited to my salary at the university, where the bookkeeping and accounting are all done by the accounting and payroll department of the university.
