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Do I have to pay taxes in Mexico for remittances from the United States?

2022-06-21T14:06:01.222Z


If your family receives remittances, you are probably wondering whether or not you should pay taxes on these transactions received. Here we solve your doubts.


Mexico receives a historic amount in remittances 0:56

(CNN Spanish) -- 

There is no doubt that remittances, the money that Mexican migrants send from the United States, represent an important source of income for the economy of Mexican families: in April 2022, US $ 4,718 million were sent, according to the Bank of Mexico.

Meanwhile, an analysis by BBVA suggested a "surprising" growth of 27.1% in remittances to the country in 2021 and 19.6% in January 2022 at an annual rate.

If you are part of any of these families whose livelihood is benefited by remittances, you are probably wondering whether or not you should pay taxes on these transactions received.

Here we solve your doubts.

  • Paisano Remittance Card: a new way to receive money in Mexico

Are taxes paid in Mexico for remittances?

BBVA: Remittances save 836,000 Mexicans from poverty 1:06

According to the Tax Administration Service (SAT), if you obtain income through remittances you must pay income tax (ISR).

However, according to article 93 of the Federal Income Tax Law, if you meet certain requirements, you do not have to pay taxes on the remittances received.

In its section XXIII, this law contemplates that remittances would count as donations and should not be included in the annual declaration if they fall into the following cases:

  • If the remittances, whatever their amounts, are sent between the direct family, that is, the spouse, parents and children of the taxpayer.

  • If they are for the non-direct family, as long as they are not alienated by third parties.

  • When the total value of the remittances received in a year, classified as donations, does not exceed three times the general minimum wage of the geographic area of ​​the taxpayer raised per year.

Remittances from the United States to Mexico maintained their rise in September, but the streak of historical highs stops

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In addition, take into account that Mexico and the United States have bilateral agreements to prevent fiscal evasion in terms of income taxes and prevent taxpayers from paying double.

It is because of these agreements that an income for which taxes were paid in one country does not have to pay them again in the other.

TaxesRemittances

Source: cnnespanol

All news articles on 2022-06-21

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