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Wouter
Joined: 06 Oct 2004
Posts: 128
Location: Tlaquepaque
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 Posted: Wed Sep 26, 2007 10:07 pm Post subject: |
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So if I get it right.
The FM3 that you need for honorarios is not the same as the one for nomina.
Does anybody know what you need to bring to apply for a FM3 for honorarios and what the cost are? How is this FM3 called?
Wouter |
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Samantha
Joined: 25 Oct 2003
Posts: 2038
Location: Mexican Riviera
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| Posted: Wed Sep 26, 2007 10:16 pm Post subject: |
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| Just a thought, but wouldn't it be better to visit the INM in GDL and find out what they require for your particular "lucrative activities" as a foreigner in Mexico? Each one takes a slightly different approach to various work situations. |
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Phil_K
Joined: 25 Jan 2007
Posts: 2041
Location: A World of my Own
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| Posted: Wed Sep 26, 2007 10:26 pm Post subject: |
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| Wouter wrote: |
So if I get it right.
The FM3 that you need for honorarios is not the same as the one for nomina.
Does anybody know what you need to bring to apply for a FM3 for honorarios and what the cost are? How is this FM3 called?
Wouter |
It is called an FM3!!!
The document is not different - just the permissions inside. It costs the same except if you need to change or augment permissions, they will charge you for that process.... but I would take Samantha's advice!  |
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GueroPaz
Joined: 07 Sep 2007
Posts: 216
Location: Thailand or Mexico
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| Posted: Thu Sep 27, 2007 1:42 am Post subject: |
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Thanks for this discussion. Being the newbie here (and not having arrived yet), I'm also the dummy. I already have enough pensions, and don't need medical insurance, and I want to work independiente, as a free lancer, without forming my own company.
So, regardless of how I get to Mexico, I will need to apply at INM for Form FM3 to work independently, right?
To get the FM3 independiente, I write my own letter to INM or to others, telling them I want to do freelance teaching of ingles, right?
I need a cedula to get my receipts printed. Are those receipts called recibos? Does Hacienda issue the cedula to me after INM approves the FM3?
Then I offer the recibos/receipts to any company I do freelance work for, and any other clients who ask for recibos. If I'm teaching private lessons to individuals, would they even want recibos?
This only sounds a bit complicated, unlike the byzantine system in Thailand.
One more point. I qualify for the rentista visa, but if I'm going to work independiente, on what visa should I enter Mexico?
The dummy thanks you for your replies.  |
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Guy Courchesne
Joined: 10 Mar 2003
Posts: 9650
Location: Mexico City
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| Posted: Thu Sep 27, 2007 2:28 am Post subject: |
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I have a copy here from DF immigration on what's needed for the independent FM3. Bear in mind, other parts of Mexico are different, even if this comes from immigration HQ.
The checklist is posted at http://www.teflwatch.org/forum/index.php/topic,1513.0.html |
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notamiss
Joined: 20 Jun 2007
Posts: 908
Location: El 5o pino del la CDMX
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| Posted: Thu Sep 27, 2007 3:11 am Post subject: |
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Although I'm not a teacher, my experience was similar so it may be relevant. I didn't get a new FM2 when I went independent, just a cambio de actividad. On one of the pages of my visa booklet they typed a note "Se autoriza cambio de actividad dentro de la calidad y caracter�stica migratoria [...] para desarollar actividades en forma independiente... " etc. with authorization signature and stamp.
As mentioned above, going independent doesn't mean you get a new, different FM2/3, rather that the conditions of your FM get changed, which gets documented in the visa booklet. |
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notamiss
Joined: 20 Jun 2007
Posts: 908
Location: El 5o pino del la CDMX
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| Posted: Thu Sep 27, 2007 3:33 am Post subject: |
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| GueroPaz wrote: |
I need a cedula to get my receipts printed. Are those receipts called recibos?
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They're called recibos de honorarios; really recibo means "invoice".
| GueroPaz wrote: |
| Does Hacienda issue the cedula to me after INM approves the FM3? |
Yes, but not automatically. To get it, you have to go to a Hacienda office and register (in proper Spanglish, you are getting dado de alta). Then you will be issued an RFC (tax number), and a c�dula to prove it. It's not a bad idea to have an accountant to hold your hand and give you confidence throughout the process. Then you take your c�dula, your visa and probably a proof of address (the print shop will tell you all what documentation and copies you need) and order your booklet of recibos.
| GueroPaz wrote: |
| Then I offer the recibos/receipts to any company I do freelance work for, and any other clients who ask for recibos. |
Right. Or wait for them to ask. If they want you to issue them recibos they will ask you if you can issue recibos de honorarios or to put it another way, whether you are dado de alta en Hacienda.
| GueroPaz wrote: |
| If I'm teaching private lessons to individuals, would they even want recibos? |
Probably not, unless they in turn want them for their tax deductions.
Last edited by notamiss on Thu Sep 27, 2007 3:24 pm; edited 1 time in total |
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Phil_K
Joined: 25 Jan 2007
Posts: 2041
Location: A World of my Own
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| Posted: Thu Sep 27, 2007 2:43 pm Post subject: |
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| They're called recibos de honorarios; really recibo means "invoice". |
Be careful though, there is a difference.
Recibos (receipts) are for freelancers and the form has boxes for retention of ISR (Impuesto sobre la Renta or income tax), IVA etc
Facturas (invoices) are just like any commercial invoice, with subtotal, IVA and total. In my case, these are necessary, as many major companies won't accept honorarios, and besides, it gives me more credibility to present invoices with my company logo on them.
To get recibos, you need to ask for registration in Hacienda as "Persona F�sica. For invoices, "Persona F�sica con actividades empresariales". Also make sure to make this clear in INM when you apply for authorization.
Also, be aware of your obligations as a "contribuyente". I found it difficult to get clear information from Hacienda, so you need an accountant.
Finally, I pass on this advice from my accountant. "All IVA is deductable, so get an invoice for everything - supermarket, restaurant, gasoline, copy shop, EVERYTHING". (You do this by asking for a fiscal invoice when you pay, and as long as you present your c�dula, they are obliged to give it to you).
I'm not sure EVERYTHING is deductable, but what I do is, every month (IVA is payable on or before the seventeenth of the month following the corresponding month) I send all my incoming and outgoing invoices (and $100 MX ) to the accountant and he uses what he can, pays the taxes and I reimburse it in his account.
Yes, Mexico is complicated - but only the first time |
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Guy Courchesne
Joined: 10 Mar 2003
Posts: 9650
Location: Mexico City
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| Posted: Thu Sep 27, 2007 2:55 pm Post subject: |
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Finally, I pass on this advice from my accountant. "All IVA is deductable, so get an invoice for everything - supermarket, restaurant, gasoline, copy shop, EVERYTHING". (You do this by asking for a fiscal invoice when you pay, and as long as you present your c�dula, they are obliged to give it to you).
I'm not sure EVERYTHING is deductable, but what I do is, every month (IVA is payable on or before the seventeenth of the month following the corresponding month) I send all my incoming and outgoing invoices (and $100 MX Very Happy ) to the accountant and he uses what he can, pays the taxes and I reimburse it in his account. |
Canadians will recognize the IVA as GST, which you submit to the government periodically if you run a business there, with a wide variety of expenses being deductible.
Not all things are deductible on IVA though. Restaurant tabs are, but only if you are outside your city or state. They changed that a few years ago. IVA isn't applied to books, so there is no deductible there on it either. |
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notamiss
Joined: 20 Jun 2007
Posts: 908
Location: El 5o pino del la CDMX
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| Posted: Thu Sep 27, 2007 2:56 pm Post subject: |
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| Phil_K wrote: |
I'm not sure EVERYTHING is deductable |
I thought pajamas and dog food should be deductible, since I work out of my home, and so the former is the work uniform and the latter is necessary regular maintenance for the security system, but it turns out neither are.
What is certainly deductible without a doubt is IVA paid on office supplies, (daytime) clothing and footwear, and utility payments. Also medical expenses can be deducted from your total income at the end of the year.
But like Phil says, an accountant is really necessary. The fiscal regulations are changed with such dizzying speed that it's a full-time job keeping up with them. My accountant also saved me once when a certain government fiscal office tried to extort money from me. Innocent me, since the scam was being worked actually within the physical offices, and I was being asked to pay at the cash windows, it never occured to me that it wasn't legitimate. Fortunately he set me straight and I only had to pay what I truly owed. |
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Phil_K
Joined: 25 Jan 2007
Posts: 2041
Location: A World of my Own
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| Posted: Thu Sep 27, 2007 3:11 pm Post subject: |
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| Not all things are deductible on IVA though. Restaurant tabs are, but only if you are outside your city or state. They changed that a few years ago. IVA isn't applied to books, so there is no deductible there on it either. |
But get invoices in any case, as Notamiss says, the rules just might change again - nothing to lose!
Also, as Guy says, books don't have IVA but certainly you will be able to deduct English text books from your ISR at the end of the cycle. There are many things that work that way. For that reason I didn't want to nit-pick about what is or isn't deductible - just get an accountant you can trust and leave it to him. |
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GueroPaz
Joined: 07 Sep 2007
Posts: 216
Location: Thailand or Mexico
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| Posted: Fri Sep 28, 2007 2:17 am Post subject: |
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| So, even though I was an income tax accountant in a previous life and country, and even though I would just be teaching independiente and earning less than 9,000 pesos per month, should I hire a Mexican accountant to do my taxes? Do we have to file monthly or yearly, after I'm set up? |
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notamiss
Joined: 20 Jun 2007
Posts: 908
Location: El 5o pino del la CDMX
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| Posted: Fri Sep 28, 2007 3:01 am Post subject: |
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| GueroPaz wrote: |
| So, even though I was an income tax accountant in a previous life and country, and even though I would just be teaching independiente and earning less than 9,000 pesos per month, should I hire a Mexican accountant to do my taxes? Do we have to file monthly or yearly, after I'm set up? |
How's your Spanish? If it's up to dealing with Hacienda and perusing the tax regulations and frequent updates to same, then you might be all right on your own.
Income tax is filed yearly and IVA monthly. But it can change. A few years ago it was IVA every quarter, then it changed to monthly, then briefly flipped back to quarterly, then settled at monthly. |
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Phil_K
Joined: 25 Jan 2007
Posts: 2041
Location: A World of my Own
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| Posted: Fri Sep 28, 2007 2:39 pm Post subject: |
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My accountant deducts provisional monthly ISR as well!
Another tip: If you have a friend who travels a lot, give him a copy of your c�dula for out of town restaurant & hotel bills (assuming he doesn't need them himself), in any case it is good to distribute c�dulas among your family and friends, so that they can collect invoices for you. |
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leslie
Joined: 08 Feb 2003
Posts: 235
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| Posted: Fri Sep 28, 2007 8:52 pm Post subject: |
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Bye
Last edited by leslie on Tue Feb 16, 2010 9:40 pm; edited 1 time in total |
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