Even though the work home office —initially called teleworking— is a modality that has allowed employees to use Information and Communication Technologies (ICT), and collaboration with transnational companies. There are a series of fiscal responsibilities from which they cannot be separated if they want to avoid legal problems.
According to information from the specialized finance portal MyPocketsome of the responsibilities for workers are to update the RFC, pay the monthly ISR, file the annual declaration and review the tax treaties of the resident’s country and the contracting country.
READ: SAT: What is the change in payroll receipts and what should you verify?
Tax responsibilities with income from abroad
Update in the Federal Taxpayer Registry (RFC)
Those people who receive income from foreign employers have the obligation to notify the Tax Administration Service (SAT) about your tax situation. To do this, they must:
- Submit a notice of update of economic activities.
- Select the “employee” category.
- Specify that the income comes from foreign sources, embassies or international organizations.
Monthly tax payment
According to him Article 96 of the Income Tax Law (ISR), those who earn income from abroad They are obliged to calculate and make the provisional payment of the ISR before the 17th of each month. This procedure must be carried out through the system “Declarations and Payments”of the SAT, considering the income obtained during the corresponding period.
Annual declaration
According to the Article 98, section III, subsection d) of the ISR Law, Workers with income from abroad must submit their annual return before April 30 of the year following the corresponding fiscal year. This report must include a summary of the income received and taxes paid during the year.
Considerations on international tax treaties
It is essential to analyze the tax agreements between Mexico and the employer’s country of origin to define where taxes should be paid. For example, The tax agreement between Mexico and the United States stipulates that wages must be taxed in the worker’s country of residence, unless the employment is performed in the other Contracting State.
Each situation requires a thorough review of applicable regulations to ensure tax compliance.
READ: How much ISR does the SAT deduct from you if you earn 12 thousand per month?
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