Mexico: Guidance on remitting withholding taxes related to digital services
Mexico: Withholding taxes related to digital services
Guidance for foreign providers of digital services in Mexico includes instructions for how to remit the withholding taxes related to these digital services.
This guidance was included as part of the fourth version of the second resolution of amendments to the Miscellaneous Fiscal Resolution (RMF) for 2020, as released and published on 14 July 2020 on the website of the tax administration (Servicio de Administración Tributaria—SAT).
The guidance includes rules for remitting withholding tax by foreign providers of digital services in Mexico.
- The digital services providers may remit the amounts of withholding tax in Mexican pesos, routed through financial institutions that have been authorized by Mexico’s Treasury.
- Alternatively, the digital services providers can elect to remit the tax payments from abroad, if they follow the requirements for a single occasion remittance in accordance with the procedure established on tax form 13 / PLT (known in English as the "Notice of option for the payment of contributions from abroad, for the provision of digital services in Mexico") as contained in Annex 1-A. They may make the related tax payment using either Mexican pesos or U.S. dollars.
In both cases, the digital services providers must activate the appropriate field on the SAT website and make the payment.
To make a payment in U.S. dollars, the digital services providers must verify the amount of the currency exchange in accordance with the exchange rate index as determined by BANXICO and published in the official gazette, determined as of the banking business day that is immediately prior to the date when the payment is made.
For more information, contact a tax professional with the KPMG member firm in Mexico:
Antonio Zuazua | +52 81 8122-1938 | firstname.lastname@example.org
Armando Lara | +52 55 5246-8374 | email@example.com
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