All about taxes for expats in Mexico

MEXICO
TAX RETURN is a confusing name used in your inquiry. I usually do not receive any taxes returned to me. Please avoid confusing terminology even if your Taxistas use it.
 
I went to the tax office SAT in MX to ask. If I do not have income in Mexico my tax is limited to the respective surcharge on goods and services I obtain and pay for.
The person who told me knew that I am Canadian, the subject of double tax agreement were not touched.

Once a business is registered taxation for this begins. The lowest is kind of street vendor license, musicians, etc. (no book keeping) which is a flat amount each month.
May be SAT in MxCity has English documents?

ezpaci wrote:

MEXICO
TAX RETURN is a confusing name used in your inquiry...

I suppose it's understandable that there is some confusion for speakers of English as a second language.

However, in the United states, that's exactly what the tax form submitted by the taxpayer is called.

A Tax Return

The name has nothing to do with a REFUND or REBATE of taxes paid, although that is the form that is used in order to apply to get a tax refund if one is due.

For Canadians, Mexico has a tax agreement. If retired / on pension and am a resident of Mexico with a pensioner's visa, it is my understanding that you don't file Mexican income taxes if you have no income earned in Mexico (one lives on Canadian pensions). As a Mexican resident, would I have to file Canadian taxes too???? Let me know how it works.

In my investigation so far the Canada-Mexico tax treaty allows you to pay Canadian taxes on your Canadian income and not worry about the Mexican tax system

Not true for investment income - Mexico taxes on your worldwide income. If your only Cdn income traces to CPP, OAS, RRIF - then you just pay Cdn taxes but investment income is taxed by Mexico. I believe many Canadians are residents of Mexico and are filing Cdn taxes - this is incorrect.

Things are confusing - If I was a resident of Mexico using a Pensioner's visa and have Cdn CPP / OAS / RRSP income (all of these the Cdn gov't withholds 25% or so for taxes if you are a non-resident of Canada). However, investment income needs to be reported in Mexico - at least that is my understanding even if the investment income is generated outside Mexico. Can anyone confirm this? Thanks

From what I read on the CRA website, they withhold 15% on your CPP and OAS if you are a resident of Mexico.  If you were like me (in that my combined benefits would be below a taxable rate) you could apply to have part or all of the holdback eliminated. Part 217

The holdback can increase to 25% depending on the amount I think but if you file Cdn taxes, you still pay on investment income. If you file in Mexico, you pay tax on your worldwide income - CPP / OAS are taken into consideration and you get a rebate or credit on the tax withheld by the Cdn gov't. I think that is how it works.