Job Discussion Forums

inotu-unotme · Joined: 26 May 2013 Posts: 197

This is a 2 part question that has come up so many times lately with other teachers in Mexico. And to tell the truth I do not know the answer. Does anyone have direct knowledge any teachers living in Mexico who are 'freelance teaching' in person or 'teaching English online' to people in Mexico?

I have been teaching as a free agent online for years. I do live in Mexico... But the school I work for is located outside Mexico. So, I am on a visa for that type of thing. But, what about other types of teaching when the teacher is NOT located in a physical school?

FREELANCE TEACHING... FACE TO FACE...

Is there a way to legally teach/ tutor students face to face? The thing that makes me ask is that Americans, Canadians, etc have businesses in Mexico that are legit. Many things can be made legit it Mexico... People who live in my city tend to say 'freelance teaching' is not legal at all. But, is it really illegal? Does it all depend on how you file your taxes? Meaning I assume one would have to maybe pay a higher tax bracket because they are considered 'business owners.'

FREELANCE TEACHING ONLINE...

For people that teach online I've always heard many different things including a huge amount of wrong information. Because the 'business' the 'services offered' do NOT have a physical address. So, I am wondering... Is it legal to 'freelance teach English' online in Mexico and specifically teach Mexican students who live in Mexico? Is it legal to advertise English teaching services to Mexican students who live in Mexico?

BadBeagleBad · Posted: Sat Jun 20, 2015 2:54 pm Post subject:

Depends on who you ask. I work for two online schools, and for one I pay taxes in the US (it is US based), but for the other (which is located in Spain), I will pay taxes in Mexico. (I have dual US-Mexican citizenship). I have two friends who work for the same schools and they both pay taxes in the US, for the US based school, and in Costa Rica and Spain, for the Spanish school. One of them is American, married to a Mexican, on a resident, and has been told many times that Mexico is not interested in her paying taxes because her job is based outside of Mexico. Giving private classes, on the other hand, is clearly being self employed in Mexico. Since I don´t have to deal with visa issues, I am not sure how that works, but I know that most people who give private classes don´t pay taxes. I also have a small business, and I pay taxes on that, I advertise and am very visible to the public, so if I were operating illegally, it would be easy to track. Even in the small town where I live, they are cracking down on that, in January they starting making all the businesses in the tianguis register with the SAT or they lost their stand. So my advice would be if you are advertising a lot or are highly visible to do things legally. If you are just teaching friends of friends, you might not be at any risk. People everywhere hire people to give them lessons, or do small job, on an informal basis, and I would be willing to bet money that very few, if any, declare that money on their taxes.

Phil_K · Joined: 25 Jan 2007 Posts: 2041 Location: A World of my Own

The issue with teaching face-to-face that will often arise is when a client (student) needs an invoice. Although it is often informal and no receipt is necessary, there are cases where you will encounter someone who has a business, or works some way or other with honorarios/facturas as persona física, and they can offset the cost of their classes under the guise of 'continuing education'. They are not going to turn down opportunity to offset their taxes, so the question is whether you are going to be prepared to turn down those classes (often the most dedicated and serious students!) for not being set up to handle this kind of client.
Unless things have changed (and I stand to be corrected), it is a pretty simple matter of applying to IMN for an extension of activities. INM will ask you to register with Hacienda (Hacienda will require that you have applied for permission from INM first). At least that's how I did it many years ago. As you ask, "Is it legal?", you can't get much more legal than having permission from INM and paying your taxes! I don't remember the rate of taxation, but it certainly isn't high.

Rose Cohen · Joined: 21 Apr 2010 Posts: 43 Location: Mexico

Guy Courchesne · Joined: 10 Mar 2003 Posts: 9650 Location: Mexico City

I am paying a little under 10% on average...it varies month to month

MotherF

Phil_K · Joined: 25 Jan 2007 Posts: 2041 Location: A World of my Own

Phil_K · Joined: 25 Jan 2007 Posts: 2041 Location: A World of my Own

MotherF · Posted: Sat Jun 20, 2015 9:41 pm Post subject:

Use salaried employees pay about 10% in income tax (isr) but I also pay about 10% in IMSS deductions. So a total of 20%.

inotu-unotme · Joined: 26 May 2013 Posts: 197

At this point I do have a visa issued to me through the SAT office. But, the type of visa I have only allows me to work as an independent agent with a company located outside the country of Mexico. So, I guess I could ask the people at the SAT office about teaching students in Mexico online. that is all I'm interested in is online teaching not face to face. I will ask. I just got the impression it was not legal at all ever.

And I do have to say the immigration office has been quite unhelpful and almost to the point of being negative and in your face since the reform stuff. It used to be better, but not now. i'm over by Cancun. It gets me quite tense to have to deal with immigration now days. When I get married to my Mexican fiance my hope is that it will get quite a bit easier. I hope.

BadBeagleBad · Posted: Thu Jun 25, 2015 1:11 am Post subject:

inotu-unotme · Joined: 26 May 2013 Posts: 197

SAT did not issue the visa... But, I had to get paperwork from SAT to turn into immigration which allowed me a specific type of independent freelance visa. I had to work with both SAT and immigration together. Most people do not get this type of visa. It is not normal and it was a pain in the ass to get it. It is yet another legal way to get a 'type' of visa but most people do not know about this. And I would never recommend anyone to get one. It was all just to difficult and stressful. Next time I will simply do a boarder crossing if I need to before I get married. I will never be willing to get this type of visa again. All of this is my own personal opinion based on my own personal experiences.

Guy Courchesne · Joined: 10 Mar 2003 Posts: 9650 Location: Mexico City

BadBeagleBad · Posted: Thu Jun 25, 2015 9:37 pm Post subject:

I am just glad I don't have to deal with all this visa stuff. I wonder why it got so difficult, it seems like 4 or 5 years ago it was pretty easy and straightforward.

Guy Courchesne · Joined: 10 Mar 2003 Posts: 9650 Location: Mexico City