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.
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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