In this update from Ronival Real Estate, uncover the new taxpayer registration requirements in the tax reform policy. As Americans and Canadians are moving to Baja California Sur regularly, Nick Fong, the founder and broker of Ronival Real Estate is compelled to announce these important details before the deadline of July 1st, 2022.
This is a change to the tax reform policy that will help the Mexican government detect money laundering and other illegal financial transactions. It’s a policy that requires all legal residents aged 18 or over to have an RFC or Registro Federal de Contribuyentes (Federal Taxpayers Registry) number whether they earn income in Mexico or not.
Continue reading to learn more about this important policy change in Mexico.
The new Mexican federal policy
To begin, all foreign residents in Mexico will soon be required to obtain a federal tax number, as stated in the recent tax reform. That means, both temporary and permanent residents that are 18 years of age or older must have get their RFC number by the first of July. This is regardless of earning income in Mexico or not.
Your RFC number is used by the Mexican federal government for a range of purposes. But the primary purpose of the RFC is to track income. Also, it detects potential money laundering cases.
Applying for an RFC number
You must apply for an RFC number in person. To do this, just visit an office of the federal tax agency SAT. These offices are located within all major cities in Mexico. Start by making an appointment at your nearest SAT office via the agency’s online portal, which is in Spanish. That means, you must translate it if you don’t understand Spanish.
Once you request an appointment, choose the option for an individual taxpayer. Then, enter your CURP number – find that on your residency card. After that, follow the link to the next page. There, select the service for your appointment, the Mexican state where you live and the office where you’d like to submit your application.
Next, you’ll either schedule your appointment on the page’s virtual calendar or the page will state that no appointments are available. If no appointments are available, you’ll be given the option to join a virtual line. By entering your email address, you’ll be sent a “token,” which is an alphanumeric code to be used for joining the virtual line.
Finally, you’ll receive an email confirming that you’re in the virtual line. Also, you’ll be advised to monitor your email for an appointment date and time. On the day of your appointment, you must take a variety of documents to the SAT office. These documents include: A valid migration document i.e. a residency card, proof of address, such as a bank statement, electricity bill or rental contract, and your passport. Also, be sure to bring a printout of your CURP and a thumb drive to save files.
The entire process in a nut shell
When you’re there, SAT collects biometric data from you. This data includes facial photographs and fingerprints. Fortunately, there is no cost involved in applying for an RFC number. On top of that, the application process in a SAT office usually doesn’t take longer than 40 minutes.
Typically without an RFC number on your electricity bill, you won’t be able to sell your house or buy a car. And in some places, an RFC number is needed to open a bank account or contract internet service. One other bureaucratic requirement once you receive your RFC number is to obtain a document called Constancia de Situación Fiscal (Proof of Fiscal/Tax Situation). That document will be required foreigners doing business in Mexico.
Work With Ronival Real Estate
Ronival Real Estate has helped thousands of buyers and sellers across Los Cabos since 2010. If you’re interested in Cabo Real Estate, our team can assist with everything from showings and negotiations to closing and property management. Have questions? Contact us here or call +52 (624) 227 5766.