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GodsGiftToMexico

Jun 26, 2016, 2:59 PM

Post #1 of 12 (5418 views)

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Tax Question: BVI company headquartered in Mexico

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Let's say live in Mexico, own a BVI (British Virgin Islands) company, run it from your home (in Mexico), and the company offers an online service to customers in the US, using a web server located in Canada. And let's say that, by virtue of the tax treaty between the US and Mexico, you are considered a tax resident of the US only.

The only connection between the BVI company and Mexico is the fact that you are running it (i.e. developing and maintaining the web site) from your home in Mexico.

Does the BVI company have to file Mexican tax returns ? If it makes a big enough profit, does it have to pay Mexican taxes ?

Is the salary you get from the BVI company considered Mexican source income or foreign (i.e. non Mexican) source income ?
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God's Gift To Mexico
http://PuntaBanda.org

(This post was edited by GodsGiftToMexico on Jun 26, 2016, 3:16 PM)



verano

Jun 26, 2016, 3:09 PM

Post #2 of 12 (5413 views)

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Re: [GodsGiftToMexico] Tax Question: BVI company headquartered in Mexico

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If you contact the US embassy in Mexico City they will gladly/freely provide you with a list of tax professionals who will help you.

Edit : there are some excellent 'expat tax' specific forums out there. Unfortunately a simple google search does not weed out what I have in mind.


(This post was edited by verano on Jun 26, 2016, 3:17 PM)


chinagringo


Jun 26, 2016, 4:46 PM

Post #3 of 12 (5389 views)

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Re: [GodsGiftToMexico] Tax Question: BVI company headquartered in Mexico

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Given the fact that you are asking a tax question that could involve up to four different countries, why waste your time on a Mexico specific forum where I would seriously doubt you would get any valid info? Heck, finding a tax expert with the expertise to handle questions about the implications for all four countries would be a real challenge in itself!
Regards,
Neil
Albuquerque, NM



GodsGiftToMexico

Jun 26, 2016, 5:00 PM

Post #4 of 12 (5386 views)

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Re: [chinagringo] Tax Question: BVI company headquartered in Mexico

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In Reply To
Given the fact that you are asking a tax question that could involve up to four different countries, why waste your time on a Mexico specific forum where I would seriously doubt you would get any valid info? Heck, finding a tax expert with the expertise to handle questions about the implications for all four countries would be a real challenge in itself!


Hopefully, someone here has faced the same issue. The question is Mexico specific.

I believe if, instead of Mexico, the country of actual residence was Panama, the BVI company would file no tax returns in Panama and pay no taxes in Panama.

I also believe that if, instead of Mexico, the country of actual residence was Chile, and you were in your first 3 (extendable to 6) years of actual residence, you would pay no personal income tax in Chile on the salary you take out of the BVI company.

On the other hand, if the country of actual residence was the US, I believe that, just by virtue of running the company from your home in the US, the BVI company would be considered to be doing business in the US, and would be subject to tax filings and income taxes.

So, the issue is really country specific. In this case, it's about how Mexico, not countries in general, would handle this issue.
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God's Gift To Mexico
http://PuntaBanda.org


chinagringo


Jun 26, 2016, 5:34 PM

Post #5 of 12 (5381 views)

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Re: [GodsGiftToMexico] Tax Question: BVI company headquartered in Mexico

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So it seems like a Mexico tax expert specializing in the Mexican State where one is located is in order? Having been burned by terrible advice on this and other forums in the past - one should pay the money to hire a professional (with documented credentials in or about Mexico tax laws) and even still keep fingers crossed that they are on the up and up!
Regards,
Neil
Albuquerque, NM



GodsGiftToMexico

Jun 26, 2016, 5:38 PM

Post #6 of 12 (5380 views)

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Re: [chinagringo] Tax Question: BVI company headquartered in Mexico

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In Reply To
So it seems like a Mexico tax expert specializing in the Mexican State where one is located is in order? Having been burned by terrible advice on this and other forums in the past - one should pay the money to hire a professional (with documented credentials in or about Mexico tax laws) and even still keep fingers crossed that they are on the up and up!


What do you believe is harder ? Reading and understanding what the law says, or figuring out which self proclaimed tax expert knows what he is talking about ?

How do you figure out which self proclaimed expert knows what he is talking about if you don't read and understand the law yourself ? The one who speaks with confidence ? The one with a nice smile ? The tall one ? The one with good bedside manners ? The one with an expensive suit ? The psychopath ? Some combination of all the above playing a trick on your subconscious mind ?
-----------------------------------------------
God's Gift To Mexico
http://PuntaBanda.org

(This post was edited by GodsGiftToMexico on Jun 26, 2016, 5:50 PM)


chinagringo


Jun 26, 2016, 6:51 PM

Post #7 of 12 (5365 views)

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Re: [GodsGiftToMexico] Tax Question: BVI company headquartered in Mexico

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Whatever trips your trigger - go for it! But please don't tell a sob story when you follow poor advice from this or other forums!
Regards,
Neil
Albuquerque, NM



GodsGiftToMexico

Jun 26, 2016, 6:59 PM

Post #8 of 12 (5361 views)

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Re: [chinagringo] Tax Question: BVI company headquartered in Mexico

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In Reply To
Whatever trips your trigger - go for it! But please don't tell a sob story when you follow poor advice from this or other forums!


Better earn a sob story for free than to pay for it !!!
-----------------------------------------------
God's Gift To Mexico
http://PuntaBanda.org


chinagringo


Jun 26, 2016, 7:49 PM

Post #9 of 12 (5356 views)

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Re: [GodsGiftToMexico] Tax Question: BVI company headquartered in Mexico

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Well, I am willing to admit that it was my own stupidity for believing and while I wasn't looking to save money - my mistake ended up costing us plenty in USD's and time!

YMMV

Regards,
Neil
Albuquerque, NM



YucaLandia


Jun 28, 2016, 9:52 AM

Post #10 of 12 (5283 views)

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Re: [GodsGiftToMexico] Tax Question: BVI company headquartered in Mexico

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Just what entices trolls to come out from under their bridges ?
-
Read-on MacDuff
E-visit at http://yucalandia.com


Gringal

Jun 28, 2016, 11:37 AM

Post #11 of 12 (5270 views)

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Re: [YucaLandia] Tax Question: BVI company headquartered in Mexico

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"Just what entices trolls to come out from under their bridges ?"

........this sort of topic?

Now, which one would I pick to ask for advice? The one with some credentials and/or references, or the best looking one.

Seeking reliable advice concerning a complex matter on an anonymous web board makes as much sense as posting your symptoms and expecting a correct medical diagnosis.

"God's Gift to Mexico" as a handle? ROFLMAO.


YucaLandia


Jun 28, 2016, 1:36 PM

Post #12 of 12 (5256 views)

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Re: [Gringal] Tax Question: BVI company headquartered in Mexico

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Is there any irony that there is a thread that offers an answer to the 4 country problem, with the taxpayer claiming USA as their principal place fiscal activities & their tax home. (?)

Why not check it out?
http://www.mexconnect.com/...;;page=unread#unread

use the Q&A option, talking directly with IRS technical experts on overseas income.. ??

First. Talk with a good international tax attorney firm, who focus on Mexican tax law, then confirm their advice with the IRS tech expert boyz.

but that would take all the drama out of it...
;)
-
Read-on MacDuff
E-visit at http://yucalandia.com

(This post was edited by YucaLandia on Jun 28, 2016, 1:41 PM)
 
 
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