A certified public accountant in Mexico, also referred to as a CPA in Mexico, is a professional who has the education, experience and has passed the examination to meet the professional standards that are enforced in the accounting industry.
Our team works with a CPA in Mexico and is thus able to provide quality legal services, along with professional accountancy solutions for companies.
Get in touch with our lawyers in Mexico to learn details about our services.
Types of accounting services available
Tax registration, maintain records, preparing the statements, tax services, payroll services, etc.
Support in tax registration
|Yes, our certified public accountant (CPA) in Mexico can provide support in tax registration|
Payroll and HR services
in Mexico offer payroll and HR services
|Audit services availability||
Yes, you can get audit services from our CPA in Mexico if you want fair representation of finances of your firm
|Forensic accounting services||Yes, our accountants in Mexico can use their investigative skills to examine the finances of your business|
|VAT-related services availability||
You can get services related to VAT registration, VAT reporting and assistance in filing, etc.
|Services provided by CPA accountants in Mexico||
Yes, we have certified public accountants (CPAs) in our Mexico firm, you can get their assistance
|Accounting and reporting standards employed in Mexico||The Mexican Council for Research and Development of Financial Information Standards is the authority which develops the accounting standards in Mexico|
|Cities in which our services are available||Mexico City, and other major cities|
|Personal income tax rate||35%|
|Corporate tax rate||30%|
|Social security taxes applied to employers||9.23%|
|Tailored support for companies operating in specific industries (Yes/No)||Yes, tailored support is available for shipping, tourism, and other business categories by our CPA in Mexico|
|Our other services are also provided by our accountants in Mexico including: assistance with establishing labor contracts, advocacy before the tax authorities, and unique services designed for small business needs, etc.|
Accounting services in Mexico
Accountants in Mexico provide various types of services to companies of all sizes and in all business fields. Some examples of the accounting and tax services offered by our team include the following:
- Tax registration: an accountant can assist clients who need to register a business with the local tax authorities; this is also included in the company formation package offered by ourlawyers in Mexico;
- Maintain records: maintaining, updating and supervising the accounting records and the books of the company according to the generally acceptable accounting principles in Mexico;
- Preparing the statements: the preparation of the balance and the income statements as required by the authorities and according to the financial reporting standards applicable in Mexico;
- Tax services: submitting the VAT declarations and the corporate income tax statements with the authorities as well as preparing and handling the corporate income tax advance payments;
- Others: payroll services that include both handling the payment to the employees and filling in the employment tax submissions.
A CPA in Mexico can provide these services and others, such as audit and tax consultations. With the assistance of a professional, company owners can make sure that they comply with the local requirements and thus avoid any tax liabilities.
You can also get the incorporation services of our lawyers if you want to open a company in Mexico.
Understanding taxation with the help of our CPA in Mexico
Working with an accountant in Mexico is important for all companies, especially foreign ones, or those incorporated by foreign entrepreneurs because the authorities demand that the financial statements are to be prepared in Spanish according to the Mexican Financial Information Standards.
A CPA in Mexico is able to handle this and also the preparation of the accounting books and registries which must also be submitted in Spanish.
In addition to general financial statements and reporting assistance, as well as tax compliance assurance, our CPA in Mexico is able to guide business owners so that they can take full advantage of the applicable incentives and tax relief options available mainly to companies in the research and development sector.
Understanding the applicable tax principles, as well as the ongoing accounting and reporting requirements is essential for running a business in Mexico. Below, the tax experts at our law office in Mexico outline the main applicable taxes for companies:
- 30%: the standard corporate income tax rate, which applies to locally registered companies as well as branches;
- 16%: the standard value-added tax, applicable for most goods and services;
- 0%: the reduced value-added tax for food, medicine and several other items; our lawyers in Mexico can provide more details;
- 8%: this is a rate that can apply to taxpayers that operate in the northern border region, subject to certain requirements.
Our CPA in Mexico can help entrepreneurs manage the payment of all of these taxes, as well as the filing of the tax and VAT returns. Companies have many benefits from outsourcing the accounting services and collaborating with a certified public accountant in Mexico.
Our team of immigration lawyers in Mexico can help you to move to the country. Get in touch to know more about the relocation details.
Conditions for being a CPA in Mexico
Obtaining the accreditation as a CPA in Mexico is important for all professionals in the field as this ensures their professionalism in the field as well as collaboration opportunities with national and international companies.
Moreover, certified public accountants can enjoy global mobility when their certifications are recognized between two or more countries.
Our team of certified public accountants is property licensed and trained and has gained important experience from working with local and international companies in Mexico.
Certified public accountants in Mexico are individuals who have obtained a university degree, have a professional license, have passed the uniform certification examination and have at least two years of professional experience.
The examination is an important part for the accreditation and it tests one’s knowledge on subjects such as financial accounting, tax, auditing as well as ethical principles for the profession.
In addition to the recognition as a CPA in Mexico, professionals can become voluntary members in the IMCP – the Mexican Institute of Public Accountants (Instituto Mexicano de Contadores Públicos).
Only those registered with the Institute are able to perform audits in public interest companies. IMCP is a member of the Group of Latin-American Accounting Standard Setters and the Inter-American Association of Accountants.
A CPA in Mexico who intends to perform tax audits needs to register with the Federal General Administration of Tax Audit, operating under the Mexican Internal Revenue Department.
What are the advantages of working with a CPA in Mexico?
Small, medium and large business alike can benefit from working with a certified public accountant. Here are some of the benefits of making this choice for your company in Mexico:
- Tax updates: tax laws are subject to change and in 2021 in Mexico, like in many other countries worldwide, the tax authorities have implemented a set of measures in response to the coronavirus pandemic that affected many types of businesses: an accountant in Mexico is able to provide information about the latest tax changes;
- Reduced debt: a company that has updated financial records is better able to keep track of its expenses, manage its debts to creditors as well as claim the due debt from its clients when or if applicable;
- Investment purposes: holding companies and other types of companies that have multiple sources of income will benefit from working with a CPA in Mexico in order to make sure that they observe the requirements and are able to manage their portfolio accordingly;
- Saved time: business owners who outsource the accounting and reporting to a professional are able to dedicate more time to concentrate on business growth.
Investors interested in immigration to Mexico and who are willing to change the business structure or open a new business can request personalized assistance from a certified accountant. The expert will be able to answer the questions concerning the changes that are to be expected from an accounting, taxation and reporting standpoint.
Companies in Mexico that own real estate and/or rent property will also benefit from outsourcing the accounting services to a CPA in Mexico. A professional will be able to manage the fairly more complex accounting and reporting requirements that apply in this case.
For investors and entrepreneurs in Mexico who are interested in other matters, such as finding the most suitable solutions to start a trust for their family, an accountant in Mexico is able to answer important questions concerning the manner in which their assets will be taxed.
Together with an accountant, an individual with a large amount of liquid financial assets will be able to plan for tax minimization and inheritance purposes.
How can our accountants in Mexico help you?
Ever-changing local laws and regulations put your businesses at an even larger risk of non-compliance and increased liability when you operate in Mexico. Only behind Colombia with 29 changes each year, Mexico is thought to have undergone the second-highest amount of economic reforms in Latin America.
By entrusting our accountants in Mexico with the management of your finances and accounting procedures, you can help reduce these risks, handle the difficulties more effectively, and make sure that your management time and resources are concentrated on both your core business and your growth strategy.
Everyone has various accounting demands; it is just the way businesses are. Regulations, however, are inflexible. Our Mexican CPA works closely with each business to give a flexible and adaptable solution that meets their requirements. For instance, our CPA in Mexico can provide the following tax-related services:
- VAT (value-added tax) informative monthly declaration and electronic submission before SAT (Mexican Tax Administration Service);
- filling out a monthly flat rate business tax return online at the SAT website, known as the IETU in Spanish;
- corporate income tax declarations are submitted electronically each month before SAT;
- create and submit a yearly corporate income tax and flat rate business tax declaration;
- preparation and online submission of the monthly corporate income tax advance payments report at the tax authority’s website;
- submitting monthly statistics returns (when applicable);
- the creation of a letter notifying the aforementioned taxes that are due.
Besides these tax-related services, our accountants in Mexico can also assist you with the following accounting services:
- formal filing with the local tax authority (SAT);
- registering an account in a bank;
- obtain the electronic signature of the corporation and the legal representative;
- preserve and oversee accounting records and books in accordance with Mexican GAAPs;
- account payables and receivables can be received and registered by our accountants;
- trial balance and income statements are prepared every month in MXP (Mexican Peso) in both English and Spanish in accordance with Mexican Financial Reporting Standards (NIF).
Get in touch with our certified public accounts in Mexico if you need assistance with any other accounting services. Their customized services are at your disposal.Furthermore, if you need help regarding your Mexican residency application, you can get the services of our attorneys.
Non-compliance fines for companies operating in Mexico
It is crucial to get the help of local accountants in Mexico. Otherwise, in case of non-compliance, you may face fines in Mexico.
To avoid such penalties, you are encouraged to get in touch with our certified public accountant in Mexico. For failures to file annual declarations, the following penalties are imposed:
- for each obligation that is not declared spontaneously throughout the relevant term, between 62 and 770 USD;
- if you file a statement, request, notification, or record outside of the time frame specified in the request or if you violate the terms of the request, you could be fined anywhere between 62 and1540 USD for each obligation to which you are subject;
- from 630 to 1262 USD for not submitting the declarations via the internet when being compelled to do so, submitting them beyond the deadline, or not complying with the requirements of the tax authorities to present them or comply with them outside the stipulated dates.
There are extra penalties in addition to the SAT Fines, including:
- in case of failure to offer the information of the recipients of cash payments made for employment subsidies or submitting these details after the deadline: you may be required to pay 770 to 1540 USD in fines;
- omitting details on actions taken through trusts for which business activities are performed: 462 to 1540 USD in fines;
- incomplete or incorrect submission of an informative statement of operations with associated parties located abroad: 3422 to 6845 USD in fines;
- not submitting the declaration, failing to meet the fiscal authorities’ requirements, or failing to meet the dates specified: 62 to 770 USD in fines for each unreported obligation, as well as another 62 to 1540 USD in fines for each obligation presented outside the request’s specified time frame or for non-compliance.
To keep your business safe from these penalties, you can consult with our accountants in Mexico. They can support you in this matter.Furthermore, if you are planning to apply for Mexican citizenship, our lawyers can help you with the application.
Mexico accounting and reporting FAQ
Below, we briefly answer some of the common questions concerning the local accounting and reporting requirements. A CPA in Mexico is able to detail these answers. Please keep in mind that the data presented herein does not substitute professional accounting services. We encourage company owners and investors in Mexico to work with accredited, professional accountants in order to make sure that they comply with the rules in force.
What is the tax year in Mexico?
For corporations, as well as individuals, the tax year is the same as the calendar year.
What are the filling and payment requirements for companies?
The annual tax return is filed within the first three months of the year following the one for which the payment in made (in some cases, this can be at the end of March). There are no extensions to this deadline.
What are the penalties for noncompliance with the tax filing requirements?
Companies as well as individuals are subject to penalties for noncompliance with the tax rules in general. These can be in the form of fines, in a certain percentage of the tax due for each month for which the tax return is not filed (to a maximum percentage). The tax authorities in Mexico can issue rulings on the tax dispositions.
A CPA in Mexico can provide more details on the interest rates that accrues on tax that is not paid before the due date.
In addition to the penalties for late filing, companies in Mexico can also be subject to penalties for noncompliance with the rules for registering for VAT purposes. However, in certain cases, taxpayers can be pardoned if they pay the due tax before the audit date used by the Mexican authorities.
In other cases, the percentage of the penalty can be 20% of the owed tax, 30% or as high as 55% to 75% in certain cases. For companies that fail to observe the VAT registration requirements, a file will also apply and they have variable rates. A CPA in Mexico is able to provide investors with the needed details on VAT registration so that they can avoid these penalties.
What are the filing and payment requirements for individuals?
Individuals are expected to file an annual tax return and make tax prepayments. The final tax deadline is on April 30 the year following the one for which the payment is made. Like in the case of companies, no extensions are possible.
The CPA in Mexico plays an important role in the growth of the business. The services provided by such experts are valuable for many types of organizations.
If you would like to know more about the accounting services we provide in partnership with a CPA, please contact the experts at our law office in Mexico.
You can also count on us if you are making plans on immigration to Mexico.