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Employee Tax Filing in Mexico

US citizens who are on assignment in Mexico often have questions about how to coordinate their tax filing in Mexico and US.  Fortunately, the dates for tax filing in Mexico, are similar to those in the US, and US citizens must also file a timely US tax return on all Mexican income.  The tax treaty between the US and Mexico prevents payment of double taxes, but the forms still must be filed.

As a client of Shield GEO, we are able to guide both the employer and employee in the specifics of Mexican tax rules, and here are a few of the most frequently asked questions:

What is the official name of the annual Mexican tax reporting form?

Form 37, Annual Constancy of Wages and Salaries.  This form basically shows the employee total annual income, with tax and other withholding in the taxable year.

In Spanish, it is referred to as “Constancia de sueldos, Salarios, Conceptos asimilados, Crédito al salario y Subsidio al para el empleo.”

What format is used?

The form is sent by us to the employee electronically in a PDF file. It requires an employee signature once they have verified the amounts.

When is the tax form, Form 37 sent to employees?

Normally, the form is sent to the employee in the last week of February, to be signed and returned.

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What date must the employer supply Form 37 to employees?

The Mexican deadline for employers to submit the form is the last week in February, in time for April filing of personal income tax returns.

Can it be prepared earlier if requested by the employee?

Because it takes time to aggregate and process the data for multiple employees, typically it cannot be sent early unless the employee is terminated.

When are employees in Mexico required to submit the Mexican tax return?

Personal income tax returns must be filed by April, so there is plenty of time to prepare the return and file it on time.

How Does Shield GEO Assist Clients with Tax Filing in Mexico?

The Shield GEO employment service includes compliant withholding, reporting and generation of the forms that each employee will need to file a Mexican tax return.  Our local employer of record is well versed in the process of Mexican tax laws and deadlines, and will keep us apprised of any changes or complications.

This is only one part of the GEO solution for international employment, but shows how we are involved in every detail of employee payroll, withholding and tax filing.  In this way, our clients do not have to monitor or administer tax requirements in Mexico, avoiding any mistakes or inadvertent violations of tax laws.  This puts both the employer and employee at ease, allowing them to focus on the substantive business activity in the country.

Get in touch to find out more about how an Employer of Record Solution can help with your employment needs in Mexico

Read our other articles on Employment in Mexico here:

5 Things to Look Out For When Employing in Mexico 
What are the New Payroll Rules in Mexico in 2017? 

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