Ceasing your tax residency in Mexico is a significant decision that involves several legal steps. Whether you're moving abroad for work, family, or other reasons, it's essential to follow the correct process to ensure compliance with Mexican tax laws. Here's a detailed guide to help you navigate through the steps required to cease your tax residency in Mexico.
Step 1: Notify the Tax Administration Service (SAT)
Prepare a written notification addressed to the Tax Administration Service (SAT) informing them of your intention to cease your tax residency. The notification must include your personal details, tax identification number (RFC), and the reasons for ceasing your tax residency. Attach any supporting documentation that may be relevant, such as proof of residence in another country.
Step 2: Submit Form 39 (Aviso de Suspensión de Actividades)
Complete and submit Form 39, known as the 'Aviso de Suspensión de Actividades,' to the SAT. This form is used to notify SAT that you will no longer be conducting taxable activities in Mexico. Ensure that all information provided is accurate and complete.
Step 3: Settle Outstanding Tax Obligations
Before ceasing your tax residency, ensure that all your tax obligations are settled. This includes paying any outstanding taxes, filing any pending tax returns, and resolving any tax disputes. Obtain a tax clearance certificate from SAT to confirm that there are no pending tax issues.
Step 4: Provide Proof of New Tax Residency
Submit proof of your new tax residency to the SAT. This could include a certificate of tax residency from the new country, a visa, or any other official document that confirms your residency status in another jurisdiction.
Step 5: Update Your Tax Identification Number (RFC)
Update your RFC status to reflect that you are no longer a tax resident of Mexico. This involves notifying the SAT and providing the necessary documentation to change your RFC status to 'non-resident.'
Legal References
- Article 9 of the Federal Tax Code (Código Fiscal de la Federación)
- Article 12 of the Income Tax Law (Ley del Impuesto sobre la Renta)
- Regulations of the Income Tax Law (Reglamento de la Ley del Impuesto sobre la Renta)
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