our Blog
-
Common Mistakes Foreigners Make When Starting a Business in Mexico
Starting a business in Mexico is a great opportunity, especially in booming sectors such as tourism, construction, and vacation rentals in Los Cabos, La Paz, San José del Cabo, and the East Cape. However, many foreign entrepreneurs face delays, unexpected costs, and penalties due to mistakes that can easily be avoided with proper legal and…
-
Accounts Payable (AP) Process in a Company — Best Practices & Compliance Guide.
The Accounts Payable process refers to a company’s short-term obligations to pay suppliers and service providers for purchases made on credit. A well-structured AP workflow is essential for maintaining cash flow management, ensuring tax compliance, and strengthening vendor relationships. Invoice Receipt Purpose: Ensure accurate capture of invoices for timely processing.Process: Receive invoices via email, vendor…
-
Residential Lease in Mexico: A Complete Tax Guide for National and Foreign Property Owners.
Tax Audits in Construction: What No One Tells You About Deductions and Materiality in Mexico Do you own a house, condo, or apartment in Mexico and are renting it out for residential purposes? Whether you’re a Mexican resident or a foreign national, the residential lease in Mexico involves key tax obligations that you must understand…
-
Tax Audits in Construction: What No One Tells You About Deductions and Materiality in Mexico
Tax Audits in Construction: What No One Tells You About Deductions and Materiality in Mexico Do you want to ensure profitability and fiscal peace of mind for your construction company in Mexico? Discover how to avoid tax audits, penalties, and the loss of key tax deductions in your construction projects. Tax audits in the construction…
-
Legal Ways to Remunerate Partners and Shareholders in Mexico
Tax strategies, documentation and asset protection for business owners and investors. In the dynamic Mexican business environment, remuneration of partners and shareholder payments is a core issue for business owners, investors, and SME directors. There are several legal ways to remunerate partners in corporate entities, each with specific fiscal, legal, and accounting implications. Adopting the…
-
Financial Statements: How to Interpret the Financial Health of Your Business
Is your business truly profitable, stable, and sustainable? Financial statements are more than just accounting reports. They are essential strategic tools that reveal the profitability, stability, and growth potential of a business. For entrepreneurs and professionals in Los Cabos, Baja California Sur, understanding them is key to making informed decisions. In this article, we explain…
-
SIROC in Construction: Comprehensive Guide to Compliance with IMSS and Avoiding Penalties
The Integral Construction Work Registration Service (SIROC) is a digital platform of the Mexican Social Security Institute (IMSS) designed to ensure that construction industry employers comply with their social security obligations. This tool replaced the SATIC and aims to guarantee that construction companies, contractors, and project owners make the required contributions for their workers. If…
-
Obligations of Authorized Donee Organizations in Mexico.
Authorized donee organizations in Mexico are civil organizations or trusts authorized by the Tax Administration Service (SAT) to receive tax-deductible donations under the Income Tax Law (LISR). To maintain this authorization and operate in compliance with the law, they must fulfill various tax and administrative obligations primarily established in the LISR and provisions issued by…
-
Joint Liability of Directors and Administrators with the SAT: Key Points to Avoid Risks
Directors, general managers, and sole administrators of companies in Mexico must understand that their role goes beyond strategic decision-making; it also involves ensuring that the company complies with its tax obligations. Noncompliance can result in joint liability, potentially putting their personal assets at risk. When Does Joint Liability Arise? The Federal Tax Code outlines several…
-
The Importance of Compliance in Vulnerable Activities under Anti-Money Law
At Tax Art, we recognize the importance of aligning with fiscal and legal regulations, especially in critical areas such as vulnerable activities governed by the Federal Law for the Prevention and Identification of Transactions with Illicit Proceeds (LFPIORPI). On November 1, 2024, the Mexican Tax Administration Service (SAT) issued a significant announcement (060/2024), revealing that…
