By July 2022, you will be required to obtain your RFC if you are over the age of 18 for tax reporting purposes.
Residents over 18 must obtain an RFC number for tax reporting purposes as Mexico drills down on money-laundering schemes by end of June, 2022. During this registration process, fingerprints, retinal scans, and color photos are obtained as well.
The RFC is a unique tax code number which identifies each person registered on the Registro Federal de Contribuyentes in Spanish (or Federal Contributor Registry). It is a unique number for individuals, akin to a social security number in the US and Canada, or a National Insurance Number in the UK. For temporary or permanent residents, the RFC has 13 digits and can be obtained in any SAT office. For businesses, the RFC will contain 12 digits. These are a mixture of letters and numbers. The first 4 digits for individuals, or 3 for companies, are taken from the name. The middle six numbers denote date of birth or when the business was founded. The last digits are check digits. Combined, all these digits create your tax reporting ID.
CURP acronym stands for : Unique Population Registry Key and has been used since 1996. A CURP number is, in essence, Mexico’s census document. In order to be included on the federal registry in Mexico, you must be a citizen or temporary or permanent resident in the country. You will definitely need both of these ID in order to work or receive income in Mexico and therefore pay MX taxes. A CURP is required to obtain your green card for permanent residency. The 18 characters combine information deriving from your name, date and place of birth, and gender to create a unique code.
Once you acquire temporary or permanent residency in Mexico, your CURP will be generated.
You will not receive one unless you are a resident or citizen. If you have an older resident card that does not already include your CURP number, you can obtain(print) that information for processing your RFC via this Immigration Consultant website.
However, as mentioned above, even if you are not a taxpayer, and are simply living your retirement years here, an RFC# is now a requirement. As of the last few years, many of your daily administrative procedures in Mexico, such as simply opening a bank account, or obtaining a driver’s license now require an RFC for the relevant paperwork. There has been a rumor that your CFE (electric) billing account also requires the RFC# on the account. This is untrue, UNLESS you are a licensed business operator, or are in need of a factura.
In the past, you may have personally noticed many laborers, such as carpenters or plumbers, have not required a ‘factura’. This legal invoice is required by most licensed businesses. Many small business owners prefer cash payment for their services because there has been zero benefit for them to obtain legal facturas (which are numbered for tax reporting purposes). As of this year, that practice will become a huge liability. It has always created an impediment for property sellers, since without that legal factura, any monies spent improving your property cannot be counted against your capital gains, or even your US tax liability.
As a foreigner, you can apply for your RFC if you have a valid residency permit.
It doesn’t matter if it’s temporary or permanent. Maybe you only live here 6 months of the year. You’ll need that RFC unless you’re paying for everything with Cash on hand brought with you. The RFC application is processed in any SAT office where you are currently living. Initially, it was thought you could shorten the process by going to LaPaz. Don’t do that unless you also LIVE there. You can use any CFE or Telmex bill, even with a different city address. But you’re going to end up in the same “around-the-block” line waiting for your appointed time, which you will schedule in advance online. IF you’ve forgotten any of the required correct documents, you will be turned away, and have to ‘re-schedule’ for another day. (Hence, SAT in your city of permanent residence is your best option)
Obtaining a CURP as Real Estate Agents was our first step in being allowed to work with a brokerage. We are not paid BY the brokerage. We are considered employees of a gov’t franchised pay company in contract with our brokerage, who is responsible for ensuring our 16% IVA (income tax) is paid prior to distributing our commission payments. The brokerage also pays taxes on income received, using their business license RFC# for reporting purposes on a monthly basis.
Because the new law mandating all residents over 18 obtain the RFC is so new, it is unknown exactly how the current commission payment system will be affected, and there has been no information provided at this time regarding using the tax portal assigned and stored on that USB to ‘report’ or ‘confirm’ Mexican income.
Now; how do you obtain either of these documents?
Both are handled through a local SAT office. However, as mentioned previously; if you already work in Mexico- even part time – your pay company will register you for your CURP to enable your actual employer to utilize your skills/services. For the CSL office, use this map.
You will find SAT in Cabo San Lucas by entering centro on Lazaro Cardenas to Hidalgo Street. That’s the intersection just before Cabo San Lucas Blvd. You will see the city park across the intersection on the left, and Cabo Church on the right. Turn there; follow that until the intersection of Adolfo Lopez Mateos. You’ll see SAT on the opposite side of the intersection.
Below are the requirements to apply for RFC Mexico. Make sure you have everything because the guards outside the SAT offices will not let you in if you did not bring all your requirements. You MUST present your printed CITA document after registering for that appointment online. Do NOT be late. You can be early, but be aware, you’ll want to go directly to the entrance guard and present your appointment confirmation document AND indicate you have brought all the required documents with you. Mexican Nationals arrive all day, and they’re part of that line going around the entire block and can take 3+ hours to circumvent.
You will need:
- Current Valid passport
- Valid Mexico residency card (temporary or permanent)
- Comprobante de domicilio (proof of address). Telmex and CFE are accepted and do not have to be under your name; just ensure the addresses are the same. All documents must be original invoices or in .pdf format
- Printed CURP. You need to go to the CURP website to download it.
- An unused USB: this will be used to download/save your firma digital. It is important not to forget this!
- Processing your RFC is completely free of charge. Be wary of fixers who are trying to charge you.
- All documents above must be printed. They do not accept digital copies.
- For businesses, bring a valid Business License, and proof of the representatives right to act on behalf of the company; including personal ID as proof of identity.
The good outcomes to look forward to are that you will get your RFC Mexico the same day. And in future, you will not have trouble obtaining MX credit cards or bank accounts.
If you’d like additional links regarding life in cabo, whether as a vacationer, a retiree/snowbird, or a permanent resident, visit our Cabo Living Page or the Baja Blogger page for pertinent information!