Malaysia Hotline: +603- 2141 8908
Corporate
Tax: Mexico's corporate tax rate for 2015 is 30%. The corporate tax rate will
be reduced to 29% in 2014 and 28% in 2015. An alternative minimum tax, AMT, of
17.5% applies to income on cash flow basis.
Capital
Gains: Capital gains of companies are added to the regular income.
Individuals:
Gains from sale of securities in the Mexican stock exchange are tax exempt.
Sale of
the principal residence is also tax exempt subject to certain terms.
Residence
A
foreign company is resident if managed in Mexico. An individual is resident
when holding a home in Mexico or when the center of life is in Mexico. Resident
companies and individuals pay taxes on their worldwide income too.
Mexico Tax Deductions
•Losses
are carried forward up to ten years. There is no carry back of losses.
•Depreciation
is deducted using the straight line method. The depreciation rates are as
follows:
•Machinery-
10%
•Furnitue-10%
•Buildings-
5%
•Cars
and Trucks- 25%
•Computers-
30%.
•There
is optional company consolidation for tax purpose in Mexico.
•Thin
capitalization rules relating to interest expenses are in effect in Mexico with
3:1 debt to equity ratio for loans from related parties.
•Donations
are tax deductible for up to 7% of previous year taxable income.
Mexico Personal Credits and
Deductions
There is
a tax credit for each dependant.
-Education
expenses are deductible, up to a limit.
-Deductions
are also permitted for social security payments by an employee, and payments to
private pension plans, up to a limit.
-Funeral
expenses are tax deductible up to a limit.
-Medical
expenses are deductible subject to a ceiling.
-Donations
to organizations, subject to terms, are tax deductible.
Deduction of Tax at Source
In
Mexico tax is deducted at source from the following payments to non residents:
-Dividend-
0%.
-Interest-
30%.
-Royalties-
25%/30%.
-Technical
Services -25%.
-Branch
Remittance Tax -0%.
Social Security
The
contributions by the employer and the employee are subject to ceiling defined
by law covering retirement fund, housing fund, death and inability. The
payments are divided roughly to two thirds by the employer and one third by the
employee. Payments to social securities are due on a monthly basis.
Contact
us
If
you have further queries, please contact Tannet
24
hours Malaysia hotline：603-21418908;
24
hours Hong Kong hotline：852-27837818;
24
hours Hong Kong hotline：86-755-
36990589;
Email:
mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.net, http://en.tannet.com.my