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Maritsa


Oct 24, 2009, 1:44 PM

Post #1 of 39 (5293 views)

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Mexican govt taking your money?

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My boyfriend was watching the news from Mexico today and said that the Mexican government is going to (or is thinking about) taking 3-4% from everyone's bank account to help with the economy? Just wondering if any of you have heard about this?



La Isla


Oct 24, 2009, 2:53 PM

Post #2 of 39 (5266 views)

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Re: [Maritsa] Mexican govt taking your money?

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I've heard that the government is talking about raising taxes to help the economy, but nothing about raiding our bank accounts, which sounds wildly improbable (and illegal) to me.


bournemouth

Oct 24, 2009, 3:13 PM

Post #3 of 39 (5252 views)

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Re: [La Isla] Mexican govt taking your money?

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Is it possible that Maritsa is talking about the increase in tax on cash deposits exceeding a certain level each month?


esperanza

Oct 24, 2009, 4:43 PM

Post #4 of 39 (5222 views)

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Re: [bournemouth] Mexican govt taking your money?

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The tax on cash deposits is currently at 2% of cash deposits over $20,000MN in any month's time.

The proposed tax on cash deposits is 3% of cash deposits over $15,000MN in any month's time.

In other words, the current law is that if you deposit cash in the amount of $19,999MN during any month, you pay no tax.

If you deposit cash in the amount of $20,000MN during any month, you pay the 2%.


http://www.mexicocooks.typepad.com









La Isla


Oct 24, 2009, 4:48 PM

Post #5 of 39 (5216 views)

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Re: [esperanza] Mexican govt taking your money?

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Thanks for the clear explanation, esperanza. I wasn't aware of this tax because I've never deposited that much money in my Mexican bank account in any given month and don't expect to in the future unless I win the lottery!


Hound Dog

Oct 24, 2009, 5:08 PM

Post #6 of 39 (5214 views)

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Re: [esperanza] Mexican govt taking your money?

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Now, Esperanza, unless I am mistaken, you are incorrect. As I see it, if you deposit, under current regulations, cash in excess of $25,000 Pesos in cash in any given calendar month in any one account , you pay a 2% tax on that amount in excess of $25,000 Pesos so, for instance, if you deposit $30,000 Pesos in one calendar month in one specific account you are charged 2% of $5,000 Pesos and the reason I know this is that I made the mistake of making large cash deposits just before my FM-2 renewal last year in order to demonstrate my qualifying income for that renewal. Had I simply wired the funds into my Mexican bank account there would have been no tax at all. I was simply unaware of the new tax when it took effect.

Had I had two separate accounts and deposited $25,000 Pesos in each I would have not been taxed.

Now, here is the kicker. Once I was taxed a minor sum for depositing cash in excess of $25,000 Pesos in one calendar month I was cited by the SAT and had to go to Guadalajara to plead my case that I was a retiree with no Mexican based income. They were nice to me when I did that but what a pain in the butt.

Furthermore, the only reason I deposited rather than wired cash is because this Mexican foreign exchange firm opened an office in Ajijic and offered to cash checks for foreigners at favorable exchange rates and I perceived that it was easier to cash checks there rather than wire funds from the U.S. and walk the funds over to my bank. WRONG! Now I know why all Mexican business people I do business with have several accounts and demand time-based recompense for services provided..

THis country is constantly shooting itself in the foot. They have even bigger morons in charge than we Americans have in Washington or the French have in Paris if that is possible.


(This post was edited by Hound Dog on Oct 24, 2009, 8:33 PM)


mazbook1


Oct 24, 2009, 5:17 PM

Post #7 of 39 (5211 views)

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Re: [La Isla] Mexican govt taking your money?

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One minor correction to esperanza's great explanation. Unless my bank has seriously mislead me, the tax 2% is only charged to the amount OVER the $20,000 limit, not charged on the initial $20,000 even if you go seriously over the limit. That's supposedly the routine that will also be used if the proposed 3% over $15,000 tax passes.

My wife now gets the housekeeping money, kids' school tuition money, etc. in cash during the tourist season, rather than having it deposited to our account, since 100% of our bookstore business is conducted in cash, and we would definitely go over the limit. We make sure our deposits are less than the taxable limit, even if it means physically hiding some cash at the end of the month to use later. It's sort of ridiculous, since the cash register reports are sealed and Hacienda can see them any time, so this isn't an effort to dodge any of the normal IVA or income taxes, just an effort to dodge a tax designed to flush out narco trafficantes and under-the-table merchants who pay no other taxes at all.

IMO it just penalizes the honest merchant, as those it was designing to catch just quit using their bank account…if they even had one. Honest merchants HAVE to have a bank account, since expenses over $2,000 must be paid by check to be counted as a business expense by Hacienda.


(This post was edited by mazbook1 on Oct 24, 2009, 6:01 PM)


Manuel Dexterity

Oct 24, 2009, 5:24 PM

Post #8 of 39 (5204 views)

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Re: [Hound Dog] Mexican govt taking your money?

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Correction Mr. Banker. The $25000 limit is per banking institution. If your cash deposits total more than $25000 among all of your accounts in the same bank you will be charged 2% of the excess.


(This post was edited by Manuel Dexterity on Oct 24, 2009, 5:26 PM)


Hound Dog

Oct 24, 2009, 5:39 PM

Post #9 of 39 (5194 views)

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Re: [mazbook1] Mexican govt taking your money?

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Mazbook:

You are correct except the maximum amount today is $25,000 Pesos. The law is an absurdity and self-defeating. We have done a couple of fairly major home refurbishment projects in Mexico in various places and have been directed by service providers to make odd deposits to multiple accounts over incongruous time periods and these are all honest folks made to act as if they were criminals which they are most assuredly not because of irrational laws meant to nail lawbreakers.

Imagine the problems we experienced driving into Guadalajara to meet with SAT because I made a $30,000 Peso deposit in one calendar month in our Mexican bank in order to demonstrate our financial worthiness to qualify for an FM-2 renewal and my having to explain to the SAT people, who were clearly embarrassed by the whole affair, that we were simple retirees living on pensions from abroad just because I had deposited the equivalent of about $350USD in excess of the maximum allowed in one month in our bank account in order to qualify for a visa renewal.

Alice in Wonderland!


(This post was edited by Hound Dog on Oct 24, 2009, 8:32 PM)


esperanza

Oct 24, 2009, 6:53 PM

Post #10 of 39 (5166 views)

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Re: [Hound Dog] Mexican govt taking your money?

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Okay, all-a-y'all.

The amount I quoted ($20,000MN) came from an article in La Voz de Michoacán that I am looking at even whilst I type. God knows I have never deposited that amount of cash to my bank during any one calendar month. And it appears that the figure in the newspaper article dated 22 octubre 2009 in La Voz de Michoacán may be erroneous--can you even imagine!

And to the person who posted that the tax is on amounts exceeding the $20 or $25,000MN--you are correct. No tax is payable on the base amount. The tax is applicable on the amount exceeding the base amount.

Thanks for noticing.


http://www.mexicocooks.typepad.com









Hound Dog

Oct 24, 2009, 8:51 PM

Post #11 of 39 (5136 views)

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Re: [Manuel Dexterity] Mexican govt taking your money?

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Correction Mr. Banker. The $25000 limit is per banking institution. If your cash deposits total more than $25000 among all of your accounts in the same bank you will be charged 2% of the excess.

Actually not precisely true Señor Dexterity. My wife and I have accounts at the same bank in the same branch and both are co-signers on each other´s accounts so have absolute access to each account as if we held joint accounts as we would in the U.S. and we can deposit $25,000 Pesos per month in each account without being subject to any taxation so we can deposit $50,000 Pesos per month in the same branch of the same bank in our two separate accounts without a tax penalty.


Peter


Oct 24, 2009, 9:02 PM

Post #12 of 39 (5127 views)

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Re: [esperanza] Mexican govt taking your money?

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That explains the horrendous tax I got once when I deposited about $6,000US one month almost three years ago. The dollar was only getting a little over 10 pesos then, thank gawd. No one called me in for a meeting or did I ever know exactly what hit me, but swore not to deposit any more money to my Mexican account. I posted something about that on this board once but was told by several that I must be out of my gourd because Mexico would never do such a thing.


Manuel Dexterity

Oct 24, 2009, 9:04 PM

Post #13 of 39 (5123 views)

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Re: [Hound Dog] Mexican govt taking your money?

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Nice try, mutt. Each account is in a different name, doesn't matter who else has access. Try opening another account in your name and see how it works for you.


Camille

Oct 24, 2009, 9:28 PM

Post #14 of 39 (5117 views)

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Re: [esperanza] Mexican govt taking your money?

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OOOOOHHHHH! Cristina, never seen "all-a-y'all" written that way, or maybe I've never seen it written at all, but SHO am proud and pleased to see you using it.....and hope all o' y'all have a terrific Noche......


RickS


Oct 25, 2009, 7:31 AM

Post #15 of 39 (5042 views)

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Re: [Camille] Mexican govt taking your money?

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Yes, it does have a nice 'ring', doesn't it!

All-a-y'all have a nice day, ya hear now....


Camille

Oct 25, 2009, 9:02 AM

Post #16 of 39 (5002 views)

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Re: [RickS] Mexican govt taking your money?

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Y'all come back now, heah? You gotta flip your hair a little bit with that one....Good Lord, I'm headin' back to Texas next week and now my mouth is already there......


Hound Dog

Oct 25, 2009, 9:18 AM

Post #17 of 39 (4989 views)

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Re: [RickS] Mexican govt taking your money?

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Yes, it does have a nice 'ring', doesn't it!

All-a-y'all have a nice day, ya hear now....


Which prompts the Dawg to remind all yáll decidin´ where yáll should reetar that yáll should add this factor into yáll´s equation. It ain´t the cost of a house that is the overridin´factor in the decision but the ongoin´cost to maintain yo butt in that shelter and buy corn dogs until they be lookin´ for a place to bury yo fastly decomposing former sef once you expire and here is what yáll should seriously keep in mind:

As the Gillette company taught us in the 1950s. It is not the cost of the razor that matters but the cost of the custom blades. If you decide to retire in Texas because houses are cheap at present, just wait until you get that first property tax bill. Let´s say you buy a $300,000USD house in San Antonio or Dallas or elect to buy a $300,000USD (equivalent) house in beautiful San Cristóbal de Las Casas, Chiapas. Your property tax in San Cristóbal will be the equivalent of $25USD a year if you are over 60 years of age and you can feed yourself and family for the equivalent of pennies a day down there and there is no air conditioning required and just the heat you desire and you do not need a car.

When we retired in California we could have bought a home in France´s Loire Valley for the same price we bought in Chiapas. As I just stated, the property tax on our home in Chiapas lat year was the equivalent of $25USD per year. In France that annual property tax would have the equivalent of $16,000USD.

HELLO!

(Sigalert: Corn Dogs are hard to find in San Cristóbal so that´s a drawback.)


(This post was edited by Hound Dog on Oct 25, 2009, 9:21 AM)


arbon

Oct 25, 2009, 10:46 AM

Post #18 of 39 (4963 views)

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Re: [Hound Dog] Mexican govt taking your money?

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"As the Gillette company taught us in the 1950s.
It is not the cost of the razor that matters but the cost of the custom blades."

A valuable how to become a "consumer" lesson no doubt.

But you can't expect to get much of anything, if you don't pay much "Property Tax" Eh.
~~~~~~~~~~~~~~~~~~~~~~~



Hound Dog

Oct 25, 2009, 11:44 AM

Post #19 of 39 (4948 views)

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Re: [arbon] Mexican govt taking your money?

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But you can't expect to get much of anything, if you don't pay much "Property Tax" Eh.

Let´s talk about that, Arbon.

We get a 50% discount on our annual proprety tax bill in Chiapas because we are senior citizens over 60. So, if we were younger, we would pay the equivalent of about $50USD a year in San Cristóbal in property taxes.

At our last residence in Sonoma County, California considering its most recent sales price in about 2005, we would be paying about $10,000USD or, perhaps more, in annual property taxes. We don´t have any children and most of that money goes to county schools so I guess what we got for that was a paved county road up our mountain and a somnalent deputy sheriff in whom we had so much faith we kept a 12 gauge shotgun and a .38 police revolver at our bedside. We also were pleased to be purchasing an overstuffed and shiftless county bureacracy with whom every encounter we had was a nightmare.

We left California forever when we retired or we would be paying about a 10% state income tax rate on our IRA drawdowns in addition to federal income taxes. Despite that enormous tax burden the state is broke and people are leaving in droves. We needed air conditioning in much of the summer and gas heat in much of the winter and during our last year as residents of California we were being squeezed by the ENRON crooks for over $800 a month for electricity alone. We had to have two cars because we lived in the country and both had to travel in our work. When we quit our jobs to retire we were informed that we had access to COBRA health care benefits for an HMO plan where we could be treated as cattle to the slaughter for only $1,000USD a month more or less and that was nine years ago. The house we paid $265,000 for in about 1980 we sold for a good profit and the creep we sold it to turned around and sold it for $1,500,000 a couple of years later under a junk mortgage to people who were unqualified to buy it.

In Chiapas, what is it we do not get that we paid in blood for in California? We do not have or need guns or air conditioning and only a modest amount of gas heat and the street and state and federal roads are as finely paved as that county road in California and, unlike California, the neighbors take care of neighbors and enforce civility on our street because the cops have been crooks since the Spanish moved in over 400 years ago and I no longer have to drive down the mountain for food but just walk a couple of blocks to the indigenous market where we can buy enough delicious mountain grown vegetables and fruit and chicken and pork and fish to live on for a week for a pittance. I can drive from San Cristóbal de Las Casas to Lake Chapala, some 1,500 kilometers, over fine autopistas paid for in tolls by those using these great highways and both towns in which we live boast good restaurants and civilized residents and gorgeous scenery.

Tell me what I´m missing, Arbon? What does that extra $10,000 in property taxes we would be paying in California buy except another grinding year of long hours at the office and despotic bosses and long, arduous commutes in stop-and-go traffic and dangerous road rage and people who don´t break into your home simply to steal your television set but to kill you because of self-defeating "third Strike" laws that could incarcerate them for the rest of their lives and authorities who could confiscate your property because they found a marijuana plant out on your acreage you didn´t even know about and creeps running around in the woods or, if you live in the heart of the city as we did at one time in Oakland and San Francisco on the streets, who will shoot you dead for a sawbuck.

Sorry, I got carried away there. What was the question, Arbon?


(This post was edited by Hound Dog on Oct 25, 2009, 11:45 AM)


Gringal

Oct 25, 2009, 11:50 AM

Post #20 of 39 (4940 views)

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Re: [arbon] Mexican govt taking your money?

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Beg to differ there, Arbon. High property taxes do not necessarily result in better facilities or services as the Dawg waxed eloquently on, above.

The property taxes in CA, otherwise a once nice place to live, were obscene. The infrastructure has been crumbling, the schools are a mess, the potholes could swallow a Volks, and then there's the recent fiscal disaster, where people got IOU's instead of a paycheck. A frugal person could manage for months on the property taxes for a modest home.

In most other places including Mexico, it's not how much the government is taking in on taxes, it's how they're managing what they take.


(This post was edited by Gringal on Oct 25, 2009, 11:52 AM)


Rolly


Oct 25, 2009, 11:53 AM

Post #21 of 39 (4944 views)

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Re: [Hound Dog] Mexican govt taking your money?

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Amen, brother Bob, Amen!

Rolly Pirate


arbon

Oct 25, 2009, 11:57 AM

Post #22 of 39 (4940 views)

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Re: [Hound Dog] Mexican govt taking your money?

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"Sorry, I got carried away there. What was the question, Arbon?"

You must have had a very good reason for being where you were then, as well as for being where you are now.
~~~~~~~~~~~~~~~~~~~~~~~



arbon

Oct 25, 2009, 12:09 PM

Post #23 of 39 (4935 views)

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Re: [Gringal] Mexican govt taking your money?

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"Beg to differ there, Arbon. High property taxes do not necessarily result in better facilities or services as the Dawg waxed eloquently on, above."

That's correct, but I said

"But you can't expect to get much of anything, if you don't pay much "Property Tax" Eh."
~~~~~~~~~~~~~~~~~~~~~~~



arbon

Oct 25, 2009, 12:28 PM

Post #24 of 39 (4930 views)

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Re: [Gringal] Mexican govt taking your money?

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"A frugal person could manage for months on the property taxes for a modest home."

We are now getting into unknown territory.
~~~~~~~~~~~~~~~~~~~~~~~



Hound Dog

Oct 25, 2009, 12:33 PM

Post #25 of 39 (4928 views)

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Re: [arbon] Mexican govt taking your money?

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You must have had a very good reason for being where you were then, as well as for being where you are now.

Well, Arbon, when Dawg followed Chuck Berry´s lead and left Downtown Birmingham on the Midnight Flyer for Los Angeles in 1966, this was a magical place I was heading for. OK, forget the beaches at Santa Monica where Dawg expected to run into Nanette Funicello but there was always The Haight and the Summer of Love and Dawg loved L.A. as well as San Francisco and had spent his life to that point in that beautiful but ovewhelming social "prison of the mind" down on the bayou and just had to get out of there and the truth is that California took good care of my French wife and me for some 30 years and what a fine place with a splendid climate that offered us incredible employment opportunities we would never have found in Alabama or France but then as things happen to all of us, one day, in our 50s, we looked up and realized that that magical place was exacting a price on us we could no longer afford emotionally or financially so, first, Arizona and then New Mexico and the Alabama Gulf Coast and then the Mexican highlands beckoned. We made the right decision.

Stop, by the way, thinking that you have outsmarted The Dawg with your leading questions. I appreciate the openings but Dawg did not just arrive on the turnip truck.
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