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hlamb
Joined: 09 Dec 2003 Posts: 431 Location: Canada
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Posted: Wed Apr 05, 2006 3:58 am Post subject: mexican taxes |
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Hey everyone,
I was talking to my boss about taxes and he had told me previously he pays for all that on my behalf. He said he would pay me x pesos per hour and he has done so, but said he would pay my taxes above x pesos. However, when I tried to find out how much he is paying for me, while doing my Canadian tax return, he didn't know. After a lengthy chat with his accountant, he informed me that people on FM3 visas do not need to pay taxes, though we are required to be on IMSS. I have proof that I am covered by IMSS but am a bit concerned about the taxes. Is he right, or will this come back to haunt me when I apply for my next FM3? |
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Samantha

Joined: 25 Oct 2003 Posts: 2038 Location: Mexican Riviera
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Posted: Wed Apr 05, 2006 5:50 am Post subject: |
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He is playing with you because taxes are payable whether you are a foreigner on FM3 or not. If he IS deducting money from your pay, it sounds as if he is doing some creative accounting and pocketing your tax money instead of submitting it, which is not all that uncommon but usually done when a teacher is NOT on an FM-3 and where no paper trail is evident. It won't affect your future FM3's but it may affect your ability to deduct it from your Canadian taxes if you don't have the proper documentation to submit. You inadvertently may end up being his worst nightmare. Shame on him. |
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ls650

Joined: 10 May 2003 Posts: 3484 Location: British Columbia
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Posted: Wed Apr 05, 2006 1:01 pm Post subject: Re: mexican taxes |
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hlamb wrote: |
After a lengthy chat with his accountant, he informed me that people on FM3 visas do not need to pay taxes, though we are required to be on IMSS. |
Not true. He is likely either too lazy to generate the paperwork for you, or he doesn't have you "on the books" (I'm guessing the latter). |
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Ben Round de Bloc
Joined: 16 Jan 2003 Posts: 1946
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Posted: Wed Apr 05, 2006 1:19 pm Post subject: Re: mexican taxes |
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ls650 wrote: |
hlamb wrote: |
After a lengthy chat with his accountant, he informed me that people on FM3 visas do not need to pay taxes, though we are required to be on IMSS. |
Not true. He is likely either too lazy to generate the paperwork for you, or he doesn't have you "on the books" (I'm guessing the latter). |
I agree with ls650's impression about what's going on with taxes in this situation. Additionally, we aren't required to be on IMSS if our employer provides private medical insurance instead. |
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hlamb
Joined: 09 Dec 2003 Posts: 431 Location: Canada
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Posted: Wed Apr 05, 2006 7:41 pm Post subject: Re: mexican taxes |
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ls650 wrote: |
Not true. He is likely either too lazy to generate the paperwork for you, or he doesn't have you "on the books" (I'm guessing the latter). |
How can he avoid having me on the books if I have an FM3? Am I not automatically known to be working here if I have a visa?
As for my Canadian taxes, it's not a problem for me, since I'll be below the poverty line there. I only worked in Canada for three months last year.
Thanks to everyone. |
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ls650

Joined: 10 May 2003 Posts: 3484 Location: British Columbia
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Posted: Wed Apr 05, 2006 7:58 pm Post subject: Re: mexican taxes |
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hlamb wrote: |
How can he avoid having me on the books if I have an FM3? Am I not automatically known to be working here if I have a visa?
As for my Canadian taxes, it's not a problem for me, since I'll be below the poverty line there. I only worked in Canada for three months last year. |
Immigration and the tax service don't talk to each other in Mexico - just like in most countries. As long as you have an FM3 to work legally here, Immigration really doesn't care about your taxes - that's the hacienda's problem.
And as for your taxes, unless you declare yourself a non-resident, Revenue Canada (or whatever they call themselves these days) expects you to file a return, regardless of your income. If you don't, and you return to Canada some day, they may well declare an audit on you. |
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PlayadelSoul

Joined: 29 Jun 2005 Posts: 346 Location: Playa del Carmen
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Posted: Wed Apr 05, 2006 8:33 pm Post subject: |
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If you are on nomina, it is the company's responsibility to pay the taxes. Many times, I have heard of company's using the ignorance of their foreign employess to deduct taxes from their checks, but fail to pay taxes or IMSS. Ask the company for your oja roja from IMSS. This will show whether or not they have registered you. If not, sue them. |
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hlamb
Joined: 09 Dec 2003 Posts: 431 Location: Canada
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Posted: Thu Apr 06, 2006 4:18 am Post subject: Re: mexican taxes |
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ls650 wrote: |
And as for your taxes, unless you declare yourself a non-resident, Revenue Canada (or whatever they call themselves these days) expects you to file a return, regardless of your income. If you don't, and you return to Canada some day, they may well declare an audit on you. |
Oh, I know I have to file a return. What I meant, and maybe I didn't say it well, is that I don't have to worry about paying income tax in Canada. After I file, I will be getting some money back because of my low income. |
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hlamb
Joined: 09 Dec 2003 Posts: 431 Location: Canada
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Posted: Sat Apr 08, 2006 2:52 am Post subject: |
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Just an update on my situation...
My boss is paying income tax for me, but the way he does it is to pay for the number of foreign teachers and our level of income, rather than having it specific to our names. This way he can avoid changing the paperwork each year.
He's been very honest in his dealings with me so I suspect he's telling the truth on this. |
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Ben Round de Bloc
Joined: 16 Jan 2003 Posts: 1946
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Posted: Sat Apr 08, 2006 3:40 pm Post subject: taxes |
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The income tax thing has been a recent topic of discussion among our group of non-tenured teachers where I work. Teachers who began working for the university during the past 5 or 6 years have taxes deducted from their pay checks, but those of us who've been working there longer don't. We have the same type of contract for the same wages per hour before deductions, but because of the tax deductions from that amount, some of us get more per hour in actual pay than others. It has nothing to do with being Mexican or foreign in this case.
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geaaronson
Joined: 19 Apr 2005 Posts: 948 Location: Mexico City
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Posted: Mon Apr 17, 2006 1:50 pm Post subject: taxes |
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When its time for you to renew your FM3 status you might want to think about switching to FM3 independent status. This is a new category that enables us gringos to file our own taxes. All you have to do is announce to the employer that you are an indendent and he can not withold your taxes. Of course you have to file them. To do so you have to go to a SAT office and get the blue book and probably hire an accountant for 800 to 2000 pesos per year. But there is a way to accumulate huge deductions and you might come out ahead on the tax situation. |
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Dragonlady

Joined: 10 May 2004 Posts: 720 Location: Chillinfernow, Canada
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Posted: Thu May 04, 2006 4:07 am Post subject: |
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deleted
out of date
Last edited by Dragonlady on Sun Sep 26, 2010 7:44 am; edited 1 time in total |
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Dragonlady

Joined: 10 May 2004 Posts: 720 Location: Chillinfernow, Canada
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Posted: Fri May 05, 2006 5:11 am Post subject: |
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deleted
out of date
Last edited by Dragonlady on Sun Sep 26, 2010 7:48 am; edited 1 time in total |
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kitkat1
Joined: 17 Jan 2006 Posts: 37
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Posted: Tue May 09, 2006 2:47 am Post subject: |
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It has been a long time since I filed taxes in Mexico so this may no longer be the case. I remember that I filed all of my paperwork at the Hacienda and they gave me a form showing what I had filed and proof that I had filed. I don't remember the name of the form - sorry - but I will try to search for it for you. In the meantime, I would go directly to Hacienda and try to find out straight from the source. |
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kitkat1
Joined: 17 Jan 2006 Posts: 37
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Posted: Tue May 09, 2006 3:05 am Post subject: |
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I think this is what you are looking for from Hacienda:
Aviso al Registro Federal de Contribuyentes
I PMd you some info |
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