Job Discussion Forums

SpaceTone · Joined: 11 Jul 2010 Posts: 29

thanks everyone for the advice, much appreciated. The process sounds a little daunting...i�m not sure i�ll be in Mexico long enough to justify it, but I�m interested in the idea of using someone else�s receipts. Does this definitely need to be someone in the same line of work, or can I use the receipts of someone in an unrelated field?
thanks again

Enchilada Potosina · Joined: 03 Aug 2010 Posts: 344 Location: Mexico

Isla Guapa · Posted: Tue Feb 01, 2011 12:00 am Post subject:

Samantha · Joined: 25 Oct 2003 Posts: 2038 Location: Mexican Riviera

Most people "sharing" tax related receipts are well aware of that and usually have an agreement worked out.

SpaceTone · Joined: 11 Jul 2010 Posts: 29

hi, picking up an old thread here...I have someone who is willing to let me use his recibos however I'm a little confused how much tax percentage I need to pay my friend, to cover his tax liability. I will be receiving 6,000 pesos from the company (from a recibo of 6,293) do I need to pay my friend 16 percent IVA (1006 pesos) or just 5.33 percent (16-10.66 iva retencion) ie 335 pesos?
Any help greatly appreciated

ton a bricks · Joined: 16 Sep 2006 Posts: 56 Location: Mexico City

For the recibos, if you have the "concepto" space filled in with Honorarios that should be ok.

The taxes are as you said, the IVA minus what the company pays, so if they pay 10.66%, you pay 5.33% to your friend. But then there is also the ISR which your employer must pay at 10%; that won't affect your friend who lends you the recibo. But there is another tax called IETU, which seems to work out to about 7.4%, and that gets charged when your friend does their monthly declaration. I think it fluctuates a bit. But if you calculate and add the 5.33% to the 7.4%, you pay about 12.73%. Of course your friend will likely ask you to repay the difference once they have paid it themselves if you still owe them something...

Getting independent teacher status seems easier in DF than in other places. Maybe because they just have so much work anyway, they don't want to make more work for themselves by challenging one's entitlement to having independent teacher status? But I was already a teacher at a state university when I switched, so they didn't have to review my qualifications either...

SpaceTone · Joined: 11 Jul 2010 Posts: 29

thanks ton a bricks, appreciate the advice. I�ve received a bit of conflicting information so was wondering if you, or anyone, can help clarify some things...
- i wrote before that the company are paying 10.66% IVA, but i�m not 100% sure this is the case (and the guy I�ve been dealing with isn�t around to ask). they said that there is 10.66% "IVA retencion", does this mean they are paying this amount? if yes, it would make sense that I only pay the difference (5.33%). However, a few people have said that even with this "retencion" I still need to pay the full 16%.
- also, you mentioned IETU tax of 7.4%. A few people have said IETU is 17.5% (ouch!). But one person said that you only pay one tax or the other, not IVA AND IETU....
I realise this is a site for teachers, and not Mexican tax accountants!! but any advice would be great.
thanks again!!

ton a bricks · Joined: 16 Sep 2006 Posts: 56 Location: Mexico City

The thing is, somebody has to pay the taxes, so if the company paying you doesn't retain the taxes, they you are stuck paying them, or owing them to the person who gives you a recibo, who has to pay. The total is 16% IVA, 10% ISR (Impuesto sobre renta) and about 7.5% IETU, or about 33.5%. So the IETU and ISR are 17.5% together. You need to find out ahead of time how much tax the person paying you is going to pay or else you are working without really knowing what you are getting paid! They usually automatically pay ISR, and like you say, 10.33% of IVA, leaving you normally with about 13% owed to the person who lets you use their recibo...

A trick to watch out for is that if you are told how much you are going to make, you need to make sure that that does not include the IVA being calculated aside. If they say 8,000 pesos but then the IVA wasn't paid, you are out that much. As the provider of the service, it doesn't seem right that you are paying the tax that is supposedly a "consumer" tax...

SpaceTone · Joined: 11 Jul 2010 Posts: 29

thanks ton a bricks, very helpful. The company have said they will retain the isr and part of the iva, so I should just have to pay around 13 percent as you say. Thanks again

mejms · Joined: 04 Jan 2010 Posts: 390

I think you need to get independent teaching status, your own recibos, and a trustworthy accountant, although it is possible to do it on your own. I think the company and your friend will soon get tired of filling you in on the details of the process. Who wants to make their lives more complicated?

Besides, getting an independent visa and recibos isn't all that hard. You might as well leave the possibility open to getting more work on your own. As it is, you might have one company, but I wouldn't count on getting more through an arrangement likes this.