As with most new laws in Mexico, they can often get modified after they are announced and everyone has the opportunity to review them. We are very happy that the latest fiscal reform that went into effect on September 1st, 2014 has been modified, or at least adjusted for Buyers and Sellers.
We recently published information about the new fiscal reforms that went into effect regarding the need for all Buyers and Sellers to have an RFC and a CURP in order to use your purchase price for tax purposes in the sale of a new property. We have some very good news about a change to this information that will make life much easier for both Buyers and Sellers. If anyone would like the official version of the modifications to the reform I can send you a copy that SAT (Hacienda Mexican IRS) has prepared. Email Taniel here.
Following are the 2 important changes in the form of a Question and an Answer directly from SAT.
Questions and answers about the use of complement referred in Rule 18.104.22.168.25 of the Resolution for Fiscal Miscellaneous for 2014:
Question: If the Buyer and Seller does not have an RFC, is it allowed to use a “Generic” RFC?
Answer: As far as foreigner(s) participating as buyer(s) and seller(s) in a real estate transaction, who are resident(s) abroad (not Mexican Residents) and they are not registered before SAT with an RFC, it is allowed to use a “Generic” RFC referred in rule 22.214.171.124.5.
This means that the notary handling the transaction can use a generic RFC or taxpayer ID number for the Buyer’s and Seller’s reporting to SAT and there is no need to get one. This applies only to residents of a foreign country and not those who reside in Mexico.
Question: Regarding real estate transactions, for purposes of issuing the Notary’s Complementary Form when there is no CURP, as is the case with foreigner(s) who are resident(s) abroad. "How shall the information of a CURP be filled out in the Complementary Form (The Notary’s Reporting Form to SAT of a sale)?"
Answer: If there is no CURP it will be allowed to use the following “Generic” CURP according to the case: XEXX010101HNEXXXA4 (if buyer or seller is a man); XEXX010101MNEXXXA8 (if buyer or seller is a woman).
This means that you do not have to have a Temporary or Permanent Resident Visa to get your CURP at the time you purchase your home. Note: If you are a Seller and want to qualify for any kind of Capital Gains Exemption you will need to have both an RFC and a CURP as has been the case for some time now.
I’m sure some of you may have questions about this as it looks confusing so do not hesitate to contact your Timothy Real Estate Group professional with any questions you may have. The good news is that it is not mandatory to have an RFC and CURP to purchase or sell a property unless the Seller wants to exempt Capital Gains tax.
Timothy Real Estate Group – An innovative company setting new standards in Real Estate sales and services has the most professional and experienced Realtors in the Puerto Vallarta area who understand the intricacies of Mexican Real Estate ownership, the local market, Puerto Vallarta property codes and regulations and financing. The Timothy Group uses that knowledge to provide a sound analysis on every aspect of property ownership. Timothy Real Estate Group is known for professionalism and experience and they bring this to every transaction they work on for the benefit of Real Estate investors and developers alike.
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