![]() ![]() In the case of dividends and other corporate distributions from Mexican companies, since 2014, there is a 10% tax withholding on the dividends from corporate profits generated after 2013. Other types of Mexican-source income (including rents and royalties) are also subject to WHTs when paid to a non-resident. Forty-six percent believe the income tax they pay is fair, essentially tying 1999’s 45 as the lowest in. Six in 10 Americans say the amount of federal income tax they pay is too high, a level last seen in 2001. Sales of shares in the Mexican stock exchange are subject to a flat 10% tax withholding on the profit from said transaction. Americans’ opinions of federal income taxes are the worst Gallup has measured in about two decades. Generally, when a capital gain is subject to tax, the non-resident investor can elect to pay either a flat rate of 25% of the gross proceeds or 35% of the net gain. Mark Kantrowitz The Kiddie Tax thresholds are unchanged at 1,100 and 2,200. Non-residents are subject to Mexican tax on gains arising from sales of real property located in Mexico (including shares of foreign companies holding a significant amount of Mexican real property) as well as the sale of shares of Mexican companies. Tax Brackets The tax-rate tables include seven tax brackets, with the following income ranges. Non-residents are subject to withholding taxes (WHTs) on Mexican-source interest income at rates varying from 0% to 35%, depending on several factors. The following tax table is applicable to income tax with respect to income earned by non-residents for the calendar year 2023: Taxable income (MXN) The first MXN 125,900 of employment income received in a 12-month floating period will be tax exempt. ![]() If the employee is considered a non-resident for Mexican tax purposes, the tax rate applicable to compensation will vary from 15% to 30%. Read a May 2023 report PDF 194 KB prepared by the KPMG member firm in Canada. The budget also provides for a reset of property tax assessment rates equivalent to 2020 rates. Each bracket saw an increase in the range tied to inflation. Another measure increases the basic personal income tax exemption to 12,750 (from 12,000). ![]() The most important update for many Americans is the tax brackets the changes to the income ranges for the marginal tax rates. The following tax rates are effective for resident individuals for calendar year 2023: Taxable income (MXN) 2020 Income Tax Brackets 2020 Income Tax Tables - Click on image to enlarge. Non-residents, including Mexican citizens who can prove residence for tax purposes in a foreign country, are taxed only on their Mexican-source income. Resident individuals are subject to Mexican income tax on their worldwide income, regardless of their nationality. ![]()
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