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Mexican Tax Law: Non-Residents
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Lease of Real or Personal Property Non-Residents: Income derived from the lease of real or personal property is taxed at a flat rate of 25% with no deductions, except for the lease of railroad cars, containers, airplanes, and ships for commercial transportation, which is taxed at 5%.
Capital GainsGains from the sale of shares or securities representing property located in Mexico, fixed assets, securities, or shares of Mexican companies are taxed at a flat rate of 20% of the gross proceeds of the sale. However, the non-resident may elect to pay tax at the rate of 25% on the net taxable gain realized, provided that the non-resident has a legal representative in Mexico who will calculate and pay the corresponding tax to the tax authorities. If the seller is a resident of a low-tax jurisdiction (tax haven), such seller can only apply the 25% rate. Joint Liability of WithholderAny company resident in Mexico or permanent establishment in Mexico must comply with the withholding and payment of taxes on behalf of third parties. If such taxes are not withheld and paid to the tax authorities, aside from imposing surcharges and penalties on the company, the latter is not authorized to deduct them as expenses for income tax purposes. Return to top |
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Mexican Tax Law: Third Party Taxes, Part II
Refer to this page for Mexican law on royalties and interest. Important terms and Mexican law are explained in relation to the U.S.-Mexican Tax Treaty.
| | Mexican Tax Law: Third Party Taxes, Part I
Questions about taxes in Mexico? SolutionsAbroad.com has you covered. Browse our guide to taxes in Mexico.
| | Mexican Tax Law: US-Mexican Tax Treaty
The US-Mexico Tax Treaty reduces the taxation of investment income flowing between the two countries. The treaty includes provisions designed to prevent double taxation and to reduce each country's tax rates on various types of income earned by non-residents.
| Mexican Tax Law: Canada-Mexico Tax Treaty
A bilateral income tax treaty has been in effect between Canada and Mexico since July 17, 1992. Like the U.S.-Mexico Tax Treaty, the Canada-Mexico Tax Treaty provides for avoidance of double taxation, reduction of income taxes applied to foreign residents, and the exchange of information between government authorities to avoid tax fraud.
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