jakiro
Author: taxdao
1. Introduction
Mexico (Spanish: Estados University Mexicanos, English: United Mexican States), referred to as “Mexico”, is an important mining production country in Latin America and the world.Mexico has not trapped the crisis of malignant inflation like Argentina, Venezuela and other countries, but its financial industry has been monopolized by foreign capital for a long time. Traditional banks cannot achieve the sinking of target users, and a large number of private credit demand is difficult to meet.With the development of fintech, the financial functions of cryptocurrencies have been discovered in Mexico, which also prompted Mexico to become one of the Latin American countries with the highest use of blockchain and cryptocurrencies.Finance is a key factor in promoting cryptocurrencies in Mexico’s development, and Mexican’s crypto tax system is also inseparable from financial supervision.This article will analyze Mexico’s crypto asset supervision and taxation systems from the four aspects of basic tax systems, cryptocurrency supervision policies, cryptocurrency tax systems, and cryptocurrency tax system summary and prospects, and predict its future development direction.
2. Overview of the basic tax system in Mexico
2.1 Mexican taxation system
According to the Mexican Constitution, the federal government and the state (city) government have the right to tax taxes to the federal and local two -level taxation system.Local levels include two levels of state and municipalities. The federal government enjoys the power to collect major domestic taxes, especially corporate income tax, and any local government has no right to levy.
The federal government of Mexico implements a compound taxation structure with income tax and VAT. The main taxes included in the current tax system include: income tax (including corporate income tax, personal income tax, capital profits tax), value -added tax, property tax (so on.Assets are the minimum taxes for assets), import and export tariffs, wages and salary taxes (mainly include taxes, social insurance, and workers’ housing funds for salary).In addition, federal taxes also include some taxes levied on mineral resources and special products and services, such as consumption taxes for alcoholic beverages, tobacco, gasoline, telecommunications services and cars.
Local governments include state and municipal governments, which have the right to levy taxes include real estate tax, salary tax (mainly levied to employers), real estate transaction tax, business asset tax, etc.Wait for charges.
2.2.1 Income tax
The Mexican tax resident enterprise stipulated in the Mexican Federal Tax Law refers to the legal entity of the main business management place or effective management places in Mexico.In the tax agreement, Mexico usually follows the concept of residential enterprise stipulated in the OECD model.Therefore, the residents in the tax agreement refer to the tax levy in the country due to the country’s laws in accordance with the country’s law, due to its location, place of residence, management place, landing place (tax agreement with Mexico) or other similar conditions.But excluding people who only derive the taxation of the country’s income.In principle, if the legal entity does not meet the definition of Mexican tax residents, it is regarded as a non -resident enterprise in Mexico.The acquisition of corporate income tax is corporate and companies engaged in business activities in Mexico.Mexican non -resident companies with permanent institutions in Mexico can be attributed to the revenue of the permanent institution and the income from Mexico to pay corporate income tax in Mexico. Non -residents who have no permanent institutions in Mexico only need to be derived from MexicoThe income pays the income tax of Mexican enterprises. Non -residential enterprises are suitable for different tax rates according to their different types of income (no deduction projects).The income should be taxed at a high tax rate.Under certain circumstances, if such companies are identified as a permanent establishment or fixed operation in Mexico -based on income tax, they will follow the tax provisions of their domestic residents from the time of determination.The situation of the branch is taxed.The capital income generated by the sale of fixed assets, stocks and real estate is considered to be ordinary income, and corporate income tax is required.Mexican law allows the sale of real estate, stocks and other fixed assets to be linked to the inflation index.
According to the Federal Tax Law of Mexico, people who have a permanent residence in Mexico are regarded as Mexican residents. If this person also has a permanent residence abroad, the main factor that determines his tax resident identity is his vital interest center.There are two situations in the center of Mexico as the center of interest: within a calendar year, the personal income from Mexico exceeds 50%of the total income; the main location of professional activities is in Mexico.If an individual’s vital interest center is located in Mexico, it should be regarded as Mexican residents.Individuals who do not meet the aforementioned conditions are non -residents.Mexican residents need to pay personal income tax on all their income worldwide; non -resident individuals who exist in the following two situations shall pay personal income tax according to law. One is to operate and obtain revenue through permanent institutions in Mexico.income.Foreigners living in Mexico are only taxed in Mexico.In the income of taxable income, residents allow medical expenses, charity donations, and educational expenses, and non -residents shall not deduct them.Since 2018, personal income tax (ISR) has implemented a 35%progressive progress tax rate.
2.2.2 VAT
Mexico’s value -added tax taxes on sales of goods and providing labor services, rental income, and imports of goods and labor services.When determining the applicable tax rate, the operating income as a non -value -added tax should be as a basis for determining the tax rate with the value -added taxable income.When taxpayers fulfill their tax obligations and enjoy their exemption rights, the taxes passed by investment expenditure must be adjusted in the future tax year.According to the New Tax Law, the basic tax rates of VAT in Mexico and border areas are 16%. In addition, it will also levy 16%of the VAT of 16%of some projects with zero -rate tax rates.At present, items that are exempted from VAT include: agricultural products, basic food and drugs, service exports, labor output, etc.
2.2.3 Asset tax
Operating asset tax is an important local tax.It is the minimum tax based on assets, which is levied at 2%of the company’s asset value, which is a supplement to federal income tax.The operating asset tax is levied by states and federal districts, with different tax rates.The tax is suitable for individual and corporate assets.The tax base of the real estate tax is based on the evaluation value of the State Land Registration Committee and the local financial department. The two departments are responsible for the evaluation of property value.Real estate transaction tax is also one of the important taxes of local governments, and its tax rate is formulated by the state government.It was originally used as a replacement of stamp duty of real estate transactions. These transactions include donations of inheritance, donations to non -profit organizations, and various real estate transfer.
3. Mexican’s cryptocurrency supervision policy
The qualitative of cryptocurrencies determines the direction of Mexican cryptocurrency supervision policy.According to the Bank of Mexican (Spanish: Banco de Mexico), although cryptocurrencies can also exchange goods or services like currencies, virtual assets such as cryptocurrencies do not conform to the classic currencies.For example, the high volatility of Bitcoin makes it difficult to play the functions of value storage and bookkeeping units. At the same time, there are fewer merchants who accept cryptocurrencies, and cryptocurrencies cannot become universal exchange media.[1] Moreover, cryptocurrencies themselves are not financial assets. The investment profit and loss brought about by its value volatility can only be played with similar financial assets.
Mexico is the first country in Latin America to formulate specific laws to supervise the field of Internet financial companies.At present, three national departments are responsible for regulating the financial industry: Bank of Mexican, the Ministry of Finance and Public Credit (SHCP) and the State Bank and Securities Committee (CNBV).Mexico’s cryptocurrency supervision policy mainly focuses on the laws such as fintech laws (Spanish: Ley Fintech) and financial technology institutions’ regulatory laws (second -level laws) and other laws.
Under the wave of rapid development of fintech, in 2018, Mexico passed financial technology.This law mainly involves two aspects of authorization: First, to authorize crowdfunding institutions (Spanish: Instituciones de Financiamiento Colectivo-IFC) to carry out “crowdfunding” transactions, such as capital transactions on bonds, equity or ownership, and the other is authorized electronic payment institutions(Spanish: Instituctiones de Fondos de Pago Electrónico-IFPE) Virtual assets such as management, redemption and transmission of electronic funds through digital methods are also covered.Both types of institutions must abide by the minimum capital requirements. Among them, if the electronic payment institutions only allow Mexican currency to operate, they need to meet the standards of 500000UDI (Mexican’s index fund units used as a stable alternative for Mexico).To operate derivatives of asset transactions or foreign currency transactions or use basic virtual assets, it is necessary to meet the standard of 700,000UDI.
In March 2019, the Bank of Mexico issued a second-level law of fintech law to include cryptocurrency companies into the jurisdiction. Since then, companies using cryptocurrencies to carry out business must also be authorized. Violators may be fined $ 9500-47,000This means that the cryptocurrency business has been stricter for qualification review and control.It is clearly stated that small and medium -sized enterprises using cryptocurrency as a payment method do not apply the law. Only by using electronic trading mechanisms or raising funds (crowdfunding) companies need to be authorized.Interestingly, the Mexican bank, one of the authorized agencies, did not approve any company within a few months after the second -level law passed. Instead, it was suggested that relevant investors were vigilant about cryptocurrency companies.
In addition to the aforementioned provisions, the Mexican Financial Intelligence Institution (FIU) also issued a report guide on cryptocurrencies, requiring reports of cryptocurrency transactions and related intermediary and service provider information.
4. Cryptocurrency tax system in Mexico
Mexico’s encrypted tax system is not complicated, and cryptocurrencies such as cryptocurrencies have rarely special tax regulations, but mainly abide by the general tax laws of Mexico.As early as 2014, the Mexican Federal Taxation Agency issued Announcement No. 230, stipulating the tax treatment methods of Bitcoin and other similar virtual currencies.The announcement clearly states that Bitcoin and other similar virtual currencies are not regarded as legal currencies or foreign currencies, so they are not suitable for Mexican’s foreign exchange control law.From the perspective of taxation, the Mexican tax authority does not distinguish between virtual assets and other assets, that is, the acquisition and circulation of any encrypted assets should comply with the same general income tax and value -added tax regulations of the same property as other movable property.
However, there are still three special points for Mexican’s cryptocurrency tax system: First, the Mexican government has established a financial intelligence secretariat (CARF), which aims to establish a unified tax framework, which indicates that the Mexican cryptocurrency tax systemIt may become more perfect.Second, the relevant enterprises are similar to the daily cryptocurrency transactions that are similar to stocks or foreign exchange.Operation.Third, in accordance with the regulations of fintech, from September 10, 2019, in addition to the normal declaration of income tax and value -added tax, related cryptocurrencies must be carried out separately when the transaction value exceeds 50,000 Mexico Peso or $ 2700, and it must be separated alone.Tax declaration, which shows the close attention of the Mexican financial regulatory authorities and tax authorities to cryptocurrency companies.
5. Summary and outlook for Mexico’s encryption asset tax system
Mexico’s encrypted asset tax system is still in a preliminary stage. The tax system mainly depends on the general tax system. The applicable tax regulations mainly depend on the legal qualitative of the Mexican government for crypto assets.The special specifications of the few crypto asset taxes are mainly to strengthen the review of the synthetic regulation to protect the potential financial risks of encrypted assets such as encrypted assets such as protecting the interests of investors and preventing cryptocurrencies.Policy attitude.Seeing the whole leopard, overall, although the Mexican government is constantly responding to the development of encrypted assets through supervision, taxation and other means, it has not denied the legitimacy of cryptocurrencies and their transactions, but it still hopes to encryption.As an asset, as a tool to promote economic development, and has been very alert to the impact of financial risks behind cryptic asset transactions and the impact of the circulation of cryptocurrencies on national monetary sovereignty.
In January 2022, Bank of Mexico announced that it was trying to create a central bank’s digital currency (CBDC) and is expected to invest in circulation in 2024.In July of that year, the Mexican Senator INDIRA KEMPIS proposed a bill, hoping that Mexico would give Bitcoin’s status as a fiat currency.As of the completion of this article, the bill has not been passed, and the digital currency of the central bank in Mexico has not appeared, but it is foreseeable that no matter whether Mexico chooses the road of centralized cryptocurrencies, whether to decentralize cryptocurrencies in order to decentralize cryptocurrencies in orderThe status of fiat currency is an unstoppable trend for the establishment of independent and comprehensive taxation systems such as Bitcoin and other out -of -central cryptocurrencies.The relationship between sovereignty.
Annotation
[1] https://www.banxico.org.mx/sisistermas-de-pago/1—–un-dirtua.html#saltos
Reference
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[2] Kereibayev, O. (2024, January 16). How to comply with mexico ’s finch law. Sumsub.
[3] Ley Para Regular Las Instituciones de Tecnología Financiera [Law to Regulating Financial Technology Companies] Arts. 30–34, Diaario Official de La Federación [D. .O.F], Mar. 9, 2018, Available As Originally Enacted on the Website of Mexico’s HouseOf repressatives.
[4] Ma Hongxia. (2023). The development status of digital currency in the global central bank, operating risk and trend forecast. Huxiang Forum, 36 (5), 1-10.
[5] The new fintech technological law of the Bank of Mexico strictly prohibits cryptocurrencies. (N.D.).
[6] The Institute of International Trade and Economic Cooperation, the Ministry of Commerce.
[7] Research Report: Mexico blockchain regulations, applications and opportunities, Bitchain Vision.
