Friday, January 11, 2019

THE 3% HOSPITALITY TAX AND ITS IMPLICATIONS FOR RESIDENTIAL RENTALS

Many have suggested that the 3% hospitality tax needs to be paid by owners of residential rental properties (single family homes, condominiums) Airbnb is trying to collect it.

Following is an explanation by a Mexican certified public accountant of the tax provided in 2015:: .

The 3% hospitality tax is a local tax, not a federal tax.    If paid by the owner of a home (house or condominium) in Mexico, the tax is being paid  in an improper manner, contrary to the purpose of the tax.

The 3% hospitality tax is not paid by those who handle rental properties (understanding that rental properties is the temporary use or enjoyment of a real property that has a residential dwelling or commercial use.).    Those who pay the hospitality tax are those whose activity is hotels.    The hotel business is a totally commercial and touristic activity. The real properties destined for hotel usage were not designed to be residential dwellings such as the ones non-resident owners have in the Mexican bank trust (fideicomiso).  The local authorities should not request same tax from you since you are not managing hotels.

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As US tax professionals we express no opinion on Mexico's tax structure and suggest you contact a Mexico tax accountant to advise you on your personal situation if you are a rental property owner.


Wednesday, January 9, 2019

Need a Good Mexican Accountant for your Mexico Taxes and Accounting?

We are often asked about referrals to a Mexican Contador/ CPA. The following firm is an excellent choice for your Mexican tax and accounting needs:

LS Accounting & Tax Services SC is a firm located in Cabo San Lucas, BCS Mexico
The owners are USA and Mexico CPA’s with decades of experience, zero language barrier and many proven local contacts.

The services provided range from monthly accounting and tax compliance to banking administration, budgeting, operational reporting, internal control audits, legal representation services, legal domicile services, new business formation, immigration services and legal documentation. The firm provide these services to a wide range of clientele from construction companies, restaurants, hospitality, retail, tourist activities, etc. The firm also  partners with US CPA firms  and Attorneys to provide a streamlined service for their  US tax payer clients and for US nonresidents who wish to do business in the US..

LS Accounting & Tax Services SC
LAT180131E55
Plaza Novva Local #37
Colonia El Tezal
Cabo San Lucas, BCS Mexico
MEX: +52 (624) 128-3700
USA: +1 (949) 436-7737
E: Sarahi0585@icloud.com