Best Tax Lawyers in Cancún

About Tax Law in Cancún, Mexico:

In Cancún, Mexico, Tax Law is principally governed by the Mexican Tax Administration Service (SAT), a federal department under Mexico's Secretariat of Finance and Public Credit. Taxes are a primary funding source for governmental services, so businesses and individuals must ensure compliance with various tax regulations. Local tax obligations in Cancún may include Income Tax (ISR), Value Added Tax (IVA), Business Flat Tax Rate (IETU), among others.

Why You May Need a Lawyer:

Understanding and complying with complex tax laws can be a daunting task for both businesses and individuals, particularly for those not familiar with Mexican tax regulations. A tax lawyer can provide valuable guidance on accurate tax planning, tax disputes, audits, fines, evasions, and even restructuration in case of financial difficulties. Individuals planning to invest in properties or start a business in Cancún may require a tax attorney to understand their tax obligations better.

Local Laws Overview:

Key aspects of local tax laws in Cancún, Mexico include:
1) Income Tax: For residents, worldwide income is taxable, but non-residents are taxed only on income from Mexican sources.
2) Value Added Tax: A 16% IVA is generally applied to the sale of goods, services, and property in Cancún, except for certain exempt items.
3) Estate Tax: There is no estate or inheritance tax in Mexico, but some related transactions may trigger income tax liability.
4) Tax for Touristic Services: Cancún applies a tourist tax on hotel accommodations and related services.

Frequently Asked Questions:

1) As a foreigner operating a business in Cancún, what taxes must I pay?

Generally, you would be liable for Income Tax (ISR), Value Added Tax (IVA), and possibly Business Flat Rate Tax (IETU). However, specific tax obligations can vary based on business particulars, so consulting with a tax attorney is advised.

2) What happens if I do not pay my taxes in Cancún?

Failure to comply with your tax obligations can result in monetary fines, sanctions, or even legal actions, depending on the severity and recurrence of the non-compliance.

3) Are there any tax benefits for starting a business in Cancún?

Yes, the Mexican government provides certain incentives to support businesses. These may depend on various factors such as the industry, location, and size of the business.

4) What is the property tax in Cancún?

Property taxes in Cancún, referred to as “Predial” tax, are around 0.1% to 0.25% of the property's assessed value.

5) Do non-residents have to pay taxes on property rental income in Cancún?

Yes, non-residents must pay income tax on rental income from properties in Cancún. However, specific tax obligations may vary, necessitating legal advice.

Additional Resources:

For additional details, individuals can consult the Mexican Tax Administration Service (SAT) or Cancún's official government website. The American Consulate in Cancún also provides resources and references for American citizens.

Next Steps:

If you need legal assistance with tax matters in Cancún, consider consulting with an experienced tax attorney. Prepare documentation related to your financial status or business operations, and do remember to ask questions to clarify your tax obligations and potential liabilities in Cancún, Mexico.