Why do I need to have a Federal Taxpayers Registry (RFC)? [] INMTEC Legal Services

Published May 31, 2022

By Angel Marín Díaz

This question, and a follow-on that asks what is a tax status certificate—Constancia de situación Fiscal—are the most recent and most pressing questions I have been receiving. Let me explain both in a sensible and logical fashion, as possibly these are areas that oftentimes seem to not make any sense to us at all.

Let’s start by defining what the Federal Taxpayers Registry (RFC) is:

The RFC is a unique registration code that serves to identify every person that carries out an economic activity and must contribute to the public expense fund through contributions based on earnings to the SAT—Tax Administration Service—the Mexican version of the IRS.

How do I get my RFC?

To begin with, you must have your CURP which is the Unique Population Registry, our version of the U.S. social security number which is an instrument used to register individually all the inhabitants of Mexico, including nationals and foreigners, as well as Mexicans living in other countries. You get this number once you acquire your temporary or permanent residence.

Once we obtain your CURP, we then apply for your RFC at the SAT, which oversees and reviews our tax returns and our tax payments. We will secure an appointment at the nearest SAT office. Due to the pandemic, over the past two years a substantial waiting list of people has developed, and a virtual line now exists which is causing many delays. This is a process that must be done in person or through an attorney-in-fact empowered with a power of attorney—see previous articles for POA explanations.

Once you have obtained your RFC, you will be able to request your Tax Status Certificate, which contains data that includes your identity, location, and fiscal characteristics of the taxpayer. It describes what type of taxpayer you are and under what tax regime you are registered.

Mexican laws are constantly changing, and even more so in fiscal and tax matters, which is why one of the newest revisions of the Mexican Fiscal Miscellaneous Reforms of 2022, requires all institutions that issue CFDI (facturas) or tax-deductible invoices, to have the following six basic elements as of June, 2022 in order to be able to be allowed to use the amount of the factura as a tax deduction:

1. RFC

2. Regime of fiscal incorporation (which can be found in your tax status certificate)

3. Zip code

4. Form of payment

5. Method of payment

6. Usage

Therefore, entities such as CFE (Federal Electricity Commission), cable TV providers, Telmex, gas services, and so forth are requesting you to update your personal and fiscal information, so that when they issue your bills, all information is correct as these are bills which are allowable as deductions from earnings and have all the requirements that the law mandates.

This is of importance for people who are required to pay taxes and make use of their deductible invoices at the time of filing their monthly or annual returns.

For all situations where we are making a large acquisition such as a home or a vehicle, the lack of an RFC number will prohibit us from making the purchase until we have fulfilled the SAT requirements.

For all situations where we are selling an important asset such as a home, land, services, or a vehicle, the RFC number will be required, or the sale will not be legally completed.

If you are a visitor renting or staying on a tourist visa with no plans of purchasing a home, and have no income generated of Mexican origin, and do not have a Mexican bank account, then you are exempt from this process.

All guests of the Mexican federation who own property of any type or receive any type of income that originates from Mexico or hold Mexican Bank accounts should at their earliest convenience start the process of acquiring their CURP, and RFC as well as their tax certificate as the lack thereof will most certainly cause substantial issues in the future.

This is a mandatory federal program that can cause undue headaches, litigation, and fines if not implemented. The RFC and CURP as well as the tax certificate are federally mandated and required for both temporary residents and permanent residents

An old Mexican saying loosely translated is, ¨An ounce of prevention is better than a kilo of solution.¨ Get it done as a word to the wise.

Thank you all for your questions this week, for more specific information on Inmtec Legal Services™, Inmtec Title Services™, Inmtec Insurance™, Estate Planning, Asset Protection, and AfterLife™ Medical Advocacy by Inmtec™ please contact the author, Ángel Marín Díaz, at: info@inmtec.net 415 121 9005 and 415 121 8943.

INMTEC Legal Services.

San Miguel Allende, Gto.

angel@inmtec.net

Office 415-121-9005

INMTEC SERVICIOS LEGALES is a bilingual legal firm, offering legal advice, in Real Estate, Labor, Family and Corporate Matters, also counting with immigration procedures, as well as Litigation in Civil, Commercial, Criminal, Administrative and Tax Law. Our attorneys have four decades of experience in all the branches mentioned earlier. We focus on our clients with Enthusiasm showing great Interest, Professionalism, and Attention, reflecting these in your case, which likewise is done with efficiency and great performance. Making your experience with INMTEC SERVICIOS LEGALES pleasant and with the expected results. INMTEC SERVICIOS LEGALS offers offices in San Miguel de Allene and Mexico City, which are deserving of our clients and have the best technology and infrastructure to give our clients security and comfort during their process with INMTEC SERVICIOS LEGALES.

At your service Ing. Angel Marín Díaz, President and C.E.O. INMTEC SERVICIOS LEGALES S.A. by C.V Lic. Edgar Rayas Bautista Managing Director INMTEC SERVICIOS LEGALES S.A. by C.V

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