Mexican income tax on rental income

[mr bill]

Sue100
Yes, I saw the news stories about the 10,000-peso assessment. Do you think this would be in addition to income tax obligations or instead of them?

My best guess is that it would (eventually) be in addition to taxes rental operators should be paying as the 10,000 peso assessment would have to be paid via official means/forms/bank accounts where an RFC would be needed. And that should get the interest of the SAT. Another interested party to this are all the hotel operators that lose business to AirBnB type rentals.

There is [was?] an interesting way around this - the taxes I mentioned in my earlier reply- referred to Furnished apartment rentals. You could rent unfurnished and then have someone like an Allen Weisselberg-type set up a furniture rental operation for the units.

Bottom line is if one is legit and pays taxes as one should one's bottom line is going red fast making the whole rental idea a questionable enterprise - so as mentioned in other posts here take advantage of the glacial speed of the municpio but don't complain when the tax free/tax avoidance holiday comes to an end.

-what does mr bill know about this anyway? From around 2000 to 2010 he owned/operated or managed 26 units in GTO. Taxes were a constant headache - what was reportable? All the rental or just part of it as the booking service collected the initial payment (even sometimes all of the payment) and that was paid into a non-Mexican bank which then brought up tax issues beyond the Mexican border. From 2010 to 2016 he was able to duck out before new, more rigorous, tax reporting rules came into play.He couldn't just 'go out of business' but SAT allowed him to suspend it. And it remains so today.