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Caarina12

Jan 17, 2005, 2:12 PM

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Working remotely for US Company

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I have been looking at these forums now for quite a long time, and the information on this website has been invaluable for assessing the option of our young family moving to Mexico. The reality check of "making a living" has been a real problem in our plans.

I am trying to find others out there who are working for US companies, but are doing so remotely. What have been the challenges? How has your company reacted to your decision to move? How do you communicate with your supervisors, clients, vendors etc. Do you have troubles logging in to company systems from outside the US?

With broadband access and Vonage (or other similar services) this seems like it could be a real option. However, it seems too simple! I've got to be missing something!

Caarina




julietl


Jan 17, 2005, 3:14 PM

Post #2 of 31 (2520 views)

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Re: [Caarina12] Working remotely for US Company

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Hi Caarina -

My main gig here is with a US/UK based advertising agency and I have to go in to the office every day! :( But I have part time work translating and media buying in Mexico City for an agency in the US. It works fine; the jobs are pretty simple and we communicate via email mainly. Sometimes phone when there is a time crunch.

For a few months last year a friend form New York was living with us. He is a Web designer and works for several companies in the US. He was able to set up an office in our spare room and continued working just like he did in NYC. The companies he works for are based in LA and Houston, so the change in residences didn´t really matter. He flew up a few times for meetings, but he would have had to do that anyway.

So, I guess it depends on what type of work you do. If it´s Web-based and you aren´t selling widgets face to face, you will be fine, provided your company is ok with it.
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kirkswig


Jan 17, 2005, 6:39 PM

Post #3 of 31 (2489 views)

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Re: [Caarina12] Working remotely for US Company

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Yeah, if what you do can be done on a computer and the work product can be conveyed over the Internet, Mexico is as good a place (or better) as any to do the work.

The big requirement is DSL. I've had mine now for approx. five months and with the exception of one outage which lasted a couple of days (would've been less had I known in advance who to call) the service has been excellent.

I have a Vonage router ready-to-go should I decide I need a phone number, but for now the service provided by iConnectHere.com has been more than sufficient (it lets you dial out, it works, and it's cheap.)

I've only had the occasion to log into a couple of corporate systems remotely and in neither case did my Mexican IP address prove a problem. However, I do not have a static IP, so in one case I had to have them configure the firewall to allow me a one-time access (after I provided my current IP address out-of-band), and in the other case they were willing to allow a range of IP addresses. If you require a static IP then be prepared to pay as it is very expensive here: Prodigy wants $1000MX per month (contrast that with the $10US a month I was paying NOB.) Ouch.

Before coming down here I was planning on leasing a server NOB and using it as a proxy for banking or for when the static IP was essential, but it hasn't been necessary and I've since forgotten about it.

As for employer reaction, well, that depends. The one company I was under contract with at the time didn't really care for it at all. I think there's a concern that they have less legal recourse should someting go awry if you're in Mexico, but I patiently explained to them that the project I was working on was a disaster no matter from where I worked on it (not my fault) and they sort of gradually accepted that view, albeit grudgingly. The other company doesn't seem to care. And of course, with a NOB mailing address and Vonage you could actually make it appear that you are anywhere you want.

I've had to take one business trip since arriving. Tip: DO NOT let somebody else arrange travel in Mexico for you. They can pay for it, but you should make the reservations. On a trip from Mazatlán to New York City, they put me on a connecting flight with a DIFFERENT CARRIER through MEXICO CITY. It was the most brutal travel experience in my life, for reasons I will not go in to. Basically, what you want to do is avoid MXC like the plague and arrange for a direct flight, or if you must connect, do it in someplace like LA or Houston.

MXC does provide free wireless if you're a Prodigy customer however, so it wasn't all bad.

The only other change you need to prepare for is in ordering stuff online, esp. computer stuff. This can be really challenging. First you have to find a place that will even ship to Mexico, then you have to pay an arm-and-a-leg for shipping, and then it's anybody's guess when the stuff actually arrives, to say nothing of what Aduana will make of it. I've received stuff in a week-and-a-half without paying aduana. I've received stuff fully two months after ordering it, and having to pay aduana more than what I paid for the original item (although admittedly it was a cheap item, $10US I think.)

I started out with three computers. I'm now down to two (oh yeah, another thing to keep in mind... coming up with a solution on how to get clean electricity for your computer, bearing in mind that, apparently, very few outlets are grounded down here.) If you have a deadline and you come here with only the laptop and it suddenly stops working, you're going to be in a bit of a bind. There is no next-day Fedex (well, there sort of is but you're paying amazing sums of money for it.) And the computer stores down here are at best limited in selection, esp. if you're using a Mac. But even PC's don't fare much better... I've done a fair bit of hunting and so far I've seen exactly TWO graphics cards since coming here, ONE sound card, ONE power supply... I see a lot of signs offering computer repair but I don't see any computer parts, so it is something of a puzzle.

So... make sure where you're going has DSL, buy a Vonage router BEFORE you come down and sign up AFTER you arrive, and bring at least TWO computers with ALL of the accessories and software you think you'll need (or be prepared to buy one from DELL upon arrival.) Then immediately get your outlets grounded, and put a UPS between everything that costs more than $100US and the Mexican electrical utility.

That being said, I've never been more productive in my life than I have been over the last three or four months.

To boldly go where no wig has gone before.


Caarina12

Jan 18, 2005, 10:38 AM

Post #4 of 31 (2427 views)

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Re: [kirkswig] Working remotely for US Company

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I think that logging into the company systems may be a problem I think that foreign IP addresses may be blocked for security reasons. So this may be a problem. I work in the healthcare industry and our security requirements are pretty strict. I'll check with my IT department prior to making the move. I would love to hear more about the option of leasing a server in the US for a static IP address.

I've also thought of the implications of having a backup PC and software should something happen. I'll have to be dilligent about backing up files etc. The latest discussion of electrical grounding on the Technical Forum was very informative and timely for my thought processes.

Thankfully, I live in San Diego, and I plan on purchasing a Vonage system and testing it out at my in-law's house in Baja first. I will also be testing my remote computer connection to my office. They have cable access and my nephew is tech guru. (almost finished with his degree in Computer Engineering at UABC) Between him and my brother (other tech guru), if they can't get the systems to work, I don't think anyone can!

Just a question why I should purchase Vonage first and not sign up until my move?

Thanks again!
Caarina



kirkswig


Jan 18, 2005, 2:28 PM

Post #5 of 31 (2398 views)

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Re: [Caarina12] Working remotely for US Company

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RE: Vonage...

If you sign up here in Mexico they're going to have to ship the router to you, which means your ability to communicate with clients/associates/etc. is at the mercy of the Mexican postal system. I think the easier alternative is to buy a third-party router NOB (Linksys makes one, for instance), come down to Mexico, wait until you have your broadband setup, and then sign up. You'll be using the phone a few minutes later.

There also used to be the question of whether Vonage was legal in Mexico... that's changed somewhat but I'm not sure to what extent, i.e., will they even ship to a Mexican address, etc.

To boldly go where no wig has gone before.


bournemouth

Jan 18, 2005, 3:40 PM

Post #6 of 31 (2388 views)

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Re: [kirkswig] Working remotely for US Company

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Vonage appears to only have "virtual numbers" available for Mexico City and no other service is shown.


johanson


Jan 18, 2005, 6:40 PM

Post #7 of 31 (2364 views)

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Re: [bournemouth] Working remotely for US Company

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Yes, right now, I read that Vonage only has virtual #s in DF in Mexico. It will be nice once they expand to other parts of Mexico.

If Vonage is illegal to use in Mexico then there are going to be many folks arrested in my village. Perhaps a third of the folks at my ISP have broadband and I bet half of them are using VoIP, most Vonage.

These days the techies at our ISP are recommending Packet8 over Vonage. Apparently Packet8's latest bandwidth compression software is slightly better than Vonage's.



Carol Schmidt


Jan 19, 2005, 12:03 PM

Post #8 of 31 (2291 views)

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Re: [johanson] Working remotely for US Company

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We got connected to Vonage in San Miguel easily. You have to have an address in the States, and many of us have mailing services with a Laredo, TX address anyway, so that's no problem. You could always use a mail service for only one month if you aren't planning to have one permanently.

It took around 10 days for our router to get here via the TX mailing service, and it was free! Why would I buy another router in the States?

You can pick any phone zip code in the US to use, even one different from our mailing address, so we picked the zip code where we had the mosst relatives who might be calling, to save them money. It costs us $15 a month for 500 free minutes. A friend did have to wait a month for her router, though. You just have to get used to quirks in Mexico.

We did have to pay duty on the router--can't remember how much, maybe around $30 US. Whatever it costs, it's well worth it.

Carol Schmidt


ken_in_dfw

Jul 3, 2006, 9:15 AM

Post #9 of 31 (2115 views)

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Re: [Caarina12] Working remotely for US Company

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Hi all,

Well, after being a lurker here for months, I'm going to resurrect this old thread, because it comes closest to answering a question I have had for some time. Close - but not quite what I'm looking for.

My situation is that my partner and I will be looking at retirement in six and a half years. Well, he'll be retiring as he will be 62. I will be a "whipper-snapper" at 51 and still wanting to be semi-productive!

As a writer and corporate marketing shill, I can pretty much work anywhere I can get broadband access. In fact, I got a chapter of a book written while on vacation last fall in San Miguel de Allende and worked on my tan at the same time - now that's what I call multi-tasking! LOL.

Anyway, I'm wondering if I can set up a US-based consulting business and just work in Mexico. And, if I can, what are the tax implications? Anything other than the broadband access question that has already been covered in this thread that I'm missing? Any ideas, thoughts or experiences would be most welcome.


ncferret

Jul 4, 2006, 6:30 AM

Post #10 of 31 (2017 views)

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Re: [kenhjr] Working remotely for US Company

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I sent you a private reply with some suggested resources to help answer your question. This forum is DEFINITELY NOT the correct place to get advice about a topic this complex. There is a great deal of incorrect information floating around on this topic and others - much of which is just plain wrong. I strongly suggest, you go see the experts and get answers directly from those professionals or government officials that deal with these questions all the time.


(This post was edited by ncferret on Jul 4, 2006, 7:18 AM)


ken_in_dfw

Jul 4, 2006, 9:45 AM

Post #11 of 31 (1975 views)

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Re: [ncferret] Working remotely for US Company

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Dave,

Thanks for the PM - and thanks to Maria, too. Good advice that I will take to heart. I can see where this is a really complex topic. It seems like a lot of life is that way. :)

Regards,

Ken


bola_blanca


Jul 4, 2006, 9:46 AM

Post #12 of 31 (1975 views)

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Re: [kenhjr] Working remotely for US Company

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kenhjr, by "just work in Mexico" do you mean only work from Mexico using a computer connection to support US clients and all income will be from US clients and you will have no employees working for you in Mexico, or do you mean that you intend to work for Mexican clients as well? Big difference.

"Give a man a fish and feed him for a day, teach him how to fish and he spends all day in a boat drinking beer."


ken_in_dfw

Jul 4, 2006, 9:01 PM

Post #13 of 31 (1912 views)

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Re: [movingto_nica] Working remotely for US Company

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Yeah, I mean just work in Mexico for US clients with no Mexican employees. At this point, I can't imagine marketing myself to Mexican businesses. Although you never know.

I'm going to follow up on Dave's advice to consult an international accounting firm. My main concern would be that I "render unto Caeser what is Caeser's" ... but I don't want to be double taxed if I can help it.


jerezano

Jul 4, 2006, 9:19 PM

Post #14 of 31 (1907 views)

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Re: [kenhjr] Working remotely for US Company

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Hello kenhjr,

With no Mexican clients, with no Mexican employees, and with no Mexican income and using US Banks for all your financial transactions, I think you will find that you have no problems if you keep your business strictly out of Mexico. Mexico has no taxes (other than the famous IVA) levied against foreign citizens. Of course if you have Mexican generated income, that is a completely different matter.

You will file your US income taxes as normally you do from your United States base. And you will conform to US business laws as you usually do. Mexico should not even enter the picute.

I recommend that you keep your US banks, and you keep a tie to some location in the US--whether it is with a relative or your own makes no difference--but as long as you want to run a business you will find that that tie will be well worth having.

Do not under any circumstances cut your ties with any US financial organizations. The Homeland Security Act makes it extremely difficult for a non-resident to open a NEW account of any type with a USA bank or financial institution.

Your big problem will probably be the telephone service. Long distance calls to and from Mexico are very expensive. You can probably handle most through one of the voice over IP computer companies. But 800 & 888 calls through TELMEX for the most part are charged at long distance rates and you don't want any of those famous hour long waits.

Good luck. Adios. jerezano.


islena


Jul 5, 2006, 6:50 AM

Post #15 of 31 (1878 views)

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Re: [jerezano] Working remotely for US Company

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This description fits my scenario exactly:

Working as a remote independent consultant, via internet and internet phone, for a US company. Fees for services paid in US dollars and deposited in my bank in Canada (where I live as well - I split my time between Canada and Mexico). I own a home in Mexico and Canada, and have a Mexican novio and dog, both living in my Mexican home.

My question: What do I tell Mexico immigration when I enter the country for longer periods of time? I am hoping to extend my stays beyond 30 days starting this fall, but of course, they want to know what I will be doing in Mexico. If I tell them the truth (as I stated above), will that raise any eyebrows and cause problems under a tourist visa (FMT)?

Thanks to everyone for all your great advice on this site!
Sue


Rolly


Jul 5, 2006, 8:30 AM

Post #16 of 31 (1850 views)

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Re: [islena] Working remotely for US Company

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Hi Sue,

Why not get an FM3? Then you can come and go and stay as long as you wish.

Rolly Pirate


islena


Jul 5, 2006, 9:31 AM

Post #17 of 31 (1833 views)

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Re: [Rolly] Working remotely for US Company

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I intend to get an FM3 when the time is right, but the time frame for the one-time import of household goods is stopping me - I'm not sure yet when I'll want to do that (if ever). I am still trying to decide if I'll keep my condo in Canada - this next year should help me make that decision.


esperanza

Jul 5, 2006, 10:13 AM

Post #18 of 31 (1818 views)

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Re: [islena] Working remotely for US Company

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You can ask for an FM-T for up to 180 days. There should be no problem.




http://www.mexicocooks.typepad.com









islena


Jul 5, 2006, 10:21 AM

Post #19 of 31 (1816 views)

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Re: [esperanza] Working remotely for US Company

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They are automatically only giving 30 days now for FMT, and if you want longer, they are making us go to Cancun to reapply (at a cost of $21 each time). And they want to know what you will be doing in Mexico - which is why I'm wondering if I tell them the way I work (via internet - nothing related to Mexico except I happen to be sitting on my sofa in my Mexican home), if they will have reason to deny me?

So far I have not stayed more than 33 days at a time, but in anticipation of staying longer starting in a few months, and continuing to work as I have been for the last 10 years, I'd just like to know if I need to formalize this with Mexico. I don't know who else to ask, and this thread seemed to resurrect itself just as these questions have been on my mind. Thanks everyone!

Sue


jerezano

Jul 5, 2006, 11:08 AM

Post #20 of 31 (1807 views)

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Re: [islena] Working remotely for US Company

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Hello Sue,

You apparently are entering México by air. It has always been the policy of the airlines to limit the FMT to only 30 days. However, once in Mexico you can apply for an extension to the 180 day period. You should have no problem. Or you could drive in, although that is a long way from Canada.

And what are you doing in Mexico so far as Mexico is concerned? Anything more than living here with your family?
Of course not. So far as Mexico is concerned you are not working here. Just because you are working via internet from your home and your home happens to be temporarily in Mexico does not create a problem.

You are visiting Mexico on an extended visit to your family. You have that right. If you don't wwant to work you don't have to. If you want to sit and drink Tequila Sunrise's then you have that right as well. If you want to sleep all day, then you have that right, and so on. If you want to spend 8 hours a day in contact via intnet with your office, you have that right.

Be honest. Tell Inmigración you want to spend some time with the family. They need and want no more.

Hacienda will not be interested in you since you will have no Mexican income. Inmigración will not be interested in enforcing the anti-work requirement of your FMT because so far as they are concerned you are not working in Mexico. Keep it that way.

Buena suerte. Adios. jerezano.


islena


Jul 5, 2006, 1:16 PM

Post #21 of 31 (1778 views)

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Re: [jerezano] Working remotely for US Company

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Hello Jerezano,

Thank you SO much for taking the time to reply. I didn't think I was doing anything wrong, but needed to make sure, and didn't know who to ask. As you might have gathered, I am heading toward retirement in the next few years and transitioning my life more and more to Mexico. Working illegally in Mexico is not in my future, and I'm hopeful there will be lots of siestas in my hammock, more than I have time for now.

I'm not sure yet if I'll keep my place in Canada for times that we go back for a visit (it is nice to have a private and comfy place to stay). It might end up being too costly to do so once I'm retired. I also don't know about bringing in my car once I'm more or less relocated - it would be nice to have, but it seems like too much of a hassle. I'll cross that road when I get there. Poco a poco...

Again - thanks to everyone who contributes to this site - what a great resource. Many of my own questions have been answered without me posting a thing, simply from reading the archives and checking in every day. This particular issue has been burning in the back of my mind for a long time - thanks again.

Hasta luego,
Sue



(This post was edited by islena on Jul 5, 2006, 1:22 PM)


jerezano

Jul 6, 2006, 5:07 AM

Post #22 of 31 (1702 views)

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Re: [islena] Working remotely for US Company

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Hello,

Our companion ncferret here on the post has sent me a Private Message about this subject. I think he should post for all to see whatever information he has and I am so recommending in a Private Message in reply to his.

First of all, my above comment was looking at the problem from the view of Mexican tax authorities. In the past, those authorities have shown no interest in foreign generated income of non mexican citizens who are not employees of a firm or organization with a Mexican presence, or of a firm without Mexican clients or Mexican generated income. However, they do collect taxes from non-mexican citizens working for organizatgions with that Mexican presence. I had a friend many years ago who was working here in Mexico City for an International non-governmental organization. His organization was paying his Mexican taxes as part of his contract. So, I am well aware that Mexican authorities do in certain cases tax the incomes of some non-mexican citizens here. However, as we all know as retirees, the Mexican government is not interested in taxing our retirement incomes from whatever source. But a small investment in some Mexican organization is immediately subject to tax (my Allan W Lloyd account is sound proof of that). There has been no indication so far that this policy of the Mexican Government is or has been changed.

Secondly, ncferret tells me that the USA IRS has an entirely different attutide. That it is very important to them where the owner of a business is situated even though the busines may be situated elsewhere. I find that hard to believe, but if so, I think we should all be aware of it and be guided accordingly.

Should anyone here have any information contrary to what I believe about the Mexican Government's tax polices please, please bring it to light.

As for the IRS, other than what I know about my personal responsibilities, I must plead ignorance.

Adios. jerezano.


islena


Jul 6, 2006, 5:52 AM

Post #23 of 31 (1694 views)

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Re: [jerezano] Working remotely for US Company

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Ah - the second part of the equation: how the former country of residence will look at the situation. I have yet to do enough research for Canada - sort of needed to know the Mexico part first, because if it was going to be a problem with Mexico, then I would just continue doing what I've been doing and wait a few more years before changing residency (not what I want to do, but that's life).

I currently declare all income and pay all taxes in Canada, and from what I've read from various sources, that would still continue after the move. But I need to talk to an international immigration lawyer and an accountant to get their recommendations on how to handle the Canadian side of the equation next. Now that I'm fairly reassured that Mexico won't really care, I will explore the other part. If I learn anything that would benefit others, I'll share it here.

Thanks again,
Sue


ncferret

Jul 6, 2006, 6:12 AM

Post #24 of 31 (1689 views)

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Re: [jerezano] Working remotely for US Company

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As I have suggested a number of times, you should not look to this board to provide answers about complicated legal or accounting questions. Speak with a good international accounting firm (Deloitte and Price Waterhouse are 2) or the IRS and SAT, as I have on 2 occasions and get the correct answers from people who are trained in this area.

Below is the link for the IRS regulations on foreign earned income including some examples:

http://www.irs.gov/businesses/small/international/article/0,,id=96811,00.html

Retirement incomes (capital gains, interest income, pensions) ARE handled differently based on changes made to the Mexican Tax Code in 2005 and the Tax Treaty between the US and Mexico. They are, generally, not taxed by the Mexican government, but there ARE exceptions.

Enforcement of the Mexican and US tax laws are an entirely different matter and SAT may look the other way in many instances. SAT is changing rapidly and becoming more aggressive in tax code enforcement.


ncferret

Jul 6, 2006, 6:22 AM

Post #25 of 31 (1687 views)

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Re: [islena] Working remotely for US Company

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Canada is a different story all together. I won't pretend to understand Canadian tax law, but I have been told there are some ways to leave Canada and opt out of the tax system.

The IRS considers any income in the world to be subject to US taxes if you are a US citizen. For example, let's say you buy a house in Mexico, live in it for ONE year and then sell it for a profit. You owe capital gains tax to the IRS on that capital gain even though it was made outside the US. Even though it wasn't reported on a 1099. Not paying that tax is income tax evasion and the penalties are very stiff. The Mexican government has a separate set of rules for the sale of a principle residence and in this example, you probably wouldn't owe the Mexican government anything.

Note, that the Tax Treaty between the US and Mexico prevents double taxation, so you get credit for taxes paid to one government or the other. It's more a matter of where your taxes are paid, not how much...


(This post was edited by ncferret on Jul 6, 2006, 6:41 AM)
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