ライトイヤージャパン List of News Articles

When Japanese companies conduct business in Mexico, it is essential to understand what a Factura is, why it needs to be issued, and who can issue it. This time, we will focus on who can issue it. 【Mexico】 Obligations for Issuing Factura A Factura is an invoice, and Mexico has implemented an electronic invoice system. Under this invoicing system, all business owners and self-employed individuals are required to issue a Factura for the sale of goods and services. This requirement also applies in the case of advance payments. For general situations that require issuance and the obligation to retain documents after issuance, please refer to the following columns. Title: 【Mexico】 General situations requiring issuance, 【Mexico】 Retention obligations after issuance.

For Japanese companies conducting business in Mexico, it is essential to understand what a Factura is, why it needs to be issued, and who can issue it. This time, we will focus on who can issue it. **Common Situations Requiring the Issuance of a Factura in Mexico** Generally, all business owners and self-employed individuals must issue a Factura in the following cases: - When the customer is a business owner or self-employed individual. - When the customer (individual) requests it for tax purposes. - When the customer is an administrative body or an entity that is not a business owner or self-employed individual (in the former case, an electronic Factura must be issued). *Persona jurídica: This includes various classifications such as municipalities, public hospitals, universities, associations, foundations, etc. - For the sale of goods that require assembly or installation before sale. For information on the obligations of issuers and the storage obligations after issuance, please refer to the following columns: [Mexico] Obligations of Factura Issuers, [Mexico] Storage Obligations After Issuance.

It is essential for Japanese companies conducting business in Mexico to understand what a Factura is, why it needs to be issued, and who can issue it. This time, we will focus on who can issue it. 【Mexico】Storage Obligations After Issuance The issuer of a Factura must always keep a copy and provide a separate copy to the customer. Currently, invoicing is done electronically (it is necessary to use a Factura issuance system authorized by the tax authority), and data is automatically sent to the customer and the tax authority at the time the Factura is issued. While it is possible to store data electronically, it is still common practice to file documents in paper format for operational purposes. For information on the obligations of issuers and storage requirements after issuance, please refer to the following columns: 【Mexico】Obligations of Factura Issuers, 【Mexico】Common Situations Requiring Issuance.

This is a brief explanation aimed at providing a quick overview of Mexico's fiscal year and the often confusing tax system in Mexico, with the goal of being readable in about one minute. I hope it will be helpful for those considering entering the Mexican market or those who have already established themselves there. ◆【Mexico】Federal Tax - ISR (Income Tax) First, Mexico has federal taxes and state taxes. Federal taxes are those that must be paid regardless of the state of residence and are the same throughout Mexico, while state taxes vary depending on the state where the business is located. Among federal taxes, ISR (Income Tax) applies to both individuals and corporations. For individuals, it is taxed on income from salary or other personal services. For corporations, it is taxed on activities such as commerce, industry, agriculture, livestock, and fishing. For information on other taxes, please see the following columns. Title: 【Mexico】Federal Tax - IVA (Value Added Tax) and 【Mexico】State Tax - Employee Payroll Tax (ISN)

This is a brief explanation aimed at providing a quick overview of Mexico's business year and the often confusing tax system in Mexico, with the goal of being readable in about one minute. I hope it will be helpful for those considering entering the Mexican market or those who have already done so. 【Mexico】Federal Tax - IVA (Value Added Tax) Value Added Tax is a federal tax that must be paid regardless of the state of residence. It is a tax applied to the sale of goods and the provision of services, equivalent to Japan's consumption tax. The standard rate for IVA is 16%. IVA is generally reported monthly. 【Mexico】State Tax - Employee Payroll Tax (ISN) Payroll tax is a type of state tax that varies by the state where the business is located. A payroll tax of 2-4% is applied to the total amount paid to employees. The company withholds this tax from employees' salaries and reports it. One of the challenging aspects of Mexico's tax system is that it is divided into federal and state taxes. Mastering this division is likely a key point for business development in Mexico. If you have any concerns regarding doing business in Mexico, please feel free to contact our company!

This is a brief explanation aimed at being read in about one minute regarding the business year in Mexico and the often confusing taxes in Mexico. I hope it will be helpful for those considering expanding into Mexico as well as those who have already done so. ◆【Mexico】About the Business Year in Mexico The business year in Mexico is defined by law as running from January 1 to December 31. This applies to all institutions, including national agencies, domestic companies, and foreign companies. Unlike in Japan, it is not possible to freely set or change the business year. The business year is a one-year period established to reflect a company's financial situation and calculate its operating results. During the business year, individuals and corporations must report various taxes. For information on the main taxes, please refer to the following columns. (*Titles: 【Mexico】Federal Tax - ISR (Income Tax), 【Mexico】Federal Tax - IVA (Value Added Tax), and State Tax - Employee Payroll Tax (ISN))

◆Tax Obligors According to Article 31 of the Constitution of the United Mexican States, all Mexican citizens are obligated to pay taxes. *Article 31 of the Constitution of the United Mexican States... Duties of Mexican citizens... IV. To contribute to public expenditures of the Federation, states, Mexico City, and the municipalities in which they reside, in a proportional and equitable manner as established by law. ◆Broadly Divided into Three Categories In Mexico, taxes applicable to taxpayers are mainly classified into the following three categories: 1. Federal Taxes (Impuestos Federales) 2. State Taxes (Impuestos Estatales) 3. Municipal Taxes (Impuestos Municipales) Taxes such as income tax (ISR) and payroll tax (ISN) fall under one of these three major classifications. The tax collection agency is called SAT (Servicio de Administración Tributaria), which is the tax administration service provider responsible for ensuring the application of tax laws and that individuals and businesses pay taxes to contribute to the public expenditures of the state. Additionally, at the local level, it is generally managed by organizations commonly referred to as FINANZAS.