Are there social security/social insurance taxes in Mexico? If so, what are the rates for employers and employees?
Foreigners who work for Mexican employers are subject to Mexican social security contributions. These are based on several components where the salary cap is 25 percent the minimum wage (2016 Minimum wage is MXP 73.04 per day). The aforementioned contributions are calculated based on the following percentages, and subject to the capped salary:
|Type of insurance||Paid by employer||Paid by employee||Total|
|Social security (IMSS)*||9.934% to 24.434%||2.727%||12.661% to 27.161%|
|Retirement fund (SAR)||2.00%||0.00%||2.00%|
|Housing fund (INFONAVIT)||5.00%||0.00%||5.00%|
|Total||16.934% to 31.434%||2.727%||19.661% to 34.161%|
* The above rates represent the effective rates for individuals with a capped salary. The employer contribution will depend on each employer’s risk classification.
Are there any gift, wealth, estate, and/or inheritance taxes in Mexico?
Mexico does not levy inheritance, gift taxes, or levy wealth taxes.
Are there real estate taxes in Mexico?
A local tax is imposed on transfers of real estate or similar operations by which property or rights thereto are transferred. The rate depends on the state where the property is located. For instance, in Mexico City, the rates range from 1.5109 percent to 20.109 percent.
Are there sales and/or value-added taxes in Mexico?
Yes, the VAT rate is 16 percent.
0 percent VAT on certain limited acts or activities.
Are there unemployment taxes in Mexico?
There is no tax taxes imposed on unemployment. However, the social security law contemplates unemployment payments.
Are there additional taxes in Mexico that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.
There are no local taxes imposed on income of individuals in Mexico. However, in certain states, payroll taxes are imposed and paid by employers. Payroll taxes, where imposed, rank from 1.0 percent to 3.0 percent.
Mexico does not levy transfer taxes at the federal level. However, a local tax is imposed at local level for transfers of real property. Please refer to the Real State Tax section.
© 2016 KPMG Crdenas Dosal S.C., a Mexico civil partnership and a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.