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Gracious

Jan 7, 2016, 12:53 PM

Post #1 of 6 (7492 views)

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Work Authorization on Temporal Resident Visa

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Hi,

Can you tell me if we can work on the Temporal Resident visa in Mexico . My parent company is in US and i will get paid in USA but for few months I have to go to Mexico and I am having my Temporal Resident Visa .

Question is are we allowed to work here . Again repeating I will not get paid in Mexico ,Its just like i am on deputation to Mexico for few months .



YucaLandia


Jan 7, 2016, 1:24 PM

Post #2 of 6 (7479 views)

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Re: [Gracious] Work Authorization on Temporal Resident Visa

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The last time we asked this question about Canadians or Americans in Mexico, working over the internet for US/Canadian companies, INM officials said that as long as they were paid in America or Canada for an American or Canadian company, then it was ok to temporarily work from Mexico.
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Read-on MacDuff
E-visit at http://yucalandia.com


Gracious

Jan 8, 2016, 1:01 PM

Post #3 of 6 (7429 views)

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Re: [YucaLandia] Work Authorization on Temporal Resident Visa

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Do you have a link for that communication with INM . My employer is having wrong information that we can not work on Temporal Visa . My employer said its a tourist visa which I know is completely wrong .

Any evidence which shows its normal to work on Temporal Visa as long as you get paid outside of USA will be a big help . Do you also have the email id of INM contact person who can ans this question ?


YucaLandia


Jan 8, 2016, 2:41 PM

Post #4 of 6 (7421 views)

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Re: [Gracious] Work Authorization on Temporal Resident Visa

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It would be best to talk with your local INM office.

That last word from an INM official was an oral communication. I have not seen anything published on this.

Tax laws can be simultaneously dense, overlapping, and complex when determining what taxes are owed and where they are owed.

A few guiding principles:
~ Your taxes owed are generally based on a combination of your "tax home" and on "your principle center of fiscal activity".

~ According to the Mexico-USA Tax Convention (1993 treaty), any taxes you pay in one country are fully credited for any taxes owed in the other, so the US taxes you pay in the USA for work completed in Mexico, count as a credit against any taxes owed in Mexico - hence the importance of where you receive the check - and whom is paying the check.

You can read more on this at:
http://[b]IRS Tax Issues for Americans Living and Working Abroad in Mexico – Master Article[/b]

Happy Trails,
steve
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Read-on MacDuff
E-visit at http://yucalandia.com

(This post was edited by YucaLandia on Jan 8, 2016, 2:49 PM)


Gracious

Jan 17, 2016, 8:00 PM

Post #5 of 6 (7255 views)

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Re: [YucaLandia] Work Authorization on Temporal Resident Visa

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Hi Steve,

Thanks for your reply . Here are some update from my side . I was in Mexico City Airport hotel for couple of days .One day I went to INM office which is situated at the basement of MeXico DF airport .

I ask the same question " I will not draw any salary in Mexico ,can I work for my parent company in Mexico " They took my card and after a lot of discussion internally with INM team they said yes there is no problem as long as I get paid in USA,

Now here is the problem : My employer is creating problem . They need written proof on the what I wrote above .Can you share INM contact email id and translate the same question(If you can plz) in Spanish ? I need some one from INM to give the written proof so that I can be on the safer side.

Regards


YucaLandia


Jan 18, 2016, 6:47 AM

Post #6 of 6 (7236 views)

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Re: [Gracious] Work Authorization on Temporal Resident Visa

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Hi Gracious,
You said your employer is requesting written proof. As I replied above to that request:

" That last word from an INM official was an oral communication. I have not seen anything published on this."

As mentioned above, the definitions of your IRS "Tax Home" and Mexico ISR's definition of “tax residence” ... "principal place of fiscal activity" .... “center of vital interests” ... may hold the key for you.

~ IRS and Mexico SAT’s Definitions of a Tax Home

Some international accountants say that if you can prove you are out of Mexico more than 183 days a year, then a person who establishes their permanent residence in Mexico for over 183 days is considered a tax resident of that other country. (Don Nelson ... ??)

Other accountants say:
" Mexico considers that your center of vital interests is in Mexico if over 50% of your income is derived from Mexican sources, or if you are employed (or self-employed) in Mexico.


Alternately: Do your work activities here in Mexico qualify as exempt "personal services"?

US-Mexico Tax Convention - 1992
"ARTICLE 14 Independent Personal Services
1. Income derived by an individual who is a resident of a Contracting State [i.e., Mexico or the U.S.] from the performance of personal services or other activities of a similar nature in an independent capacity shall be taxable only in that State, unless:

a) such resident has a fixed base in the other Contracting State which he regularly makes use of in the course of performing his activities; in such case, the other State may tax the income from services performed in that other State which is attributable to that fixed base;
or

b) the resident is present in the other Contracting State for a period or periods exceeding in the aggregate 183 days within a 12 month period; in such case, the other State may tax the income attributable to activities performed in that other State.

2. The term “personal services” includes especially independent scientific, literary or artistic activities, educational or teaching activities, as well as independent activities of physicians, lawyers, engineers, architects, dentists and accountants. "
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Read-on MacDuff
E-visit at http://yucalandia.com
 
 
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