Jump to content
Chapala.com Webboard

Digital Teleworking


seoulguy

Recommended Posts

I'm well aware of the work restrictions for visitors, as well as those who hold temp/perm visas. However, apart from the so-called digital nomads who hop from place to place, I carry my business in my laptop. I need income generated from that business to sustain my retirement. I have no Mexican clients, but I do have clients (lab scientists) all around the world, and I'm mostly paid using PayPal, and I pay SE every quarter.  This business is in its 14th year, and I couldn't just drop it to live somewhere else.  So, would like to hear from those working remotely in Mexico or who, similarly, conduct an online business within the Mexican rules and regulations, if there are any.

Link to comment
Share on other sites

If your business is US based, there is no restriction on you working remotely from Mexico. I did it for 2 years, with remote access to my stock brokerage business in the US. The more relevant issue is the fairly low bandwidth and intermittent outages. There were three layers for me to go thru to get connected and sometimes as soon as I was connected, the internet would "blink" and kick me off and have to go thru the protocols all over again. 

Link to comment
Share on other sites

The last time I asked INM & SAT (Hacienda) these questions they replied:   Ok to work on the internet with a Visitor's or ordinary Residente Temporal (no permission to work) as long as:
~ Under the 1993 US-Mexico Tax Convention (treaty), the business is based in the USA
~  Payments are received in the USA for work performed on the internet in Mexico 
~ The foreigner must maintain the USA as their 'tax home' and their 'principal place of fiscal activity'.

Under those rules,  US citizens who do not maintain a US address and who have no US presence should be paying taxes in Mexico.

This leaves us with the deeper issues of whether we expect Mexicans in the USA to follow US rules & US law,   and the Nixon Doctrine that it's only a crime if you get caught.
 

Link to comment
Share on other sites

On 6/3/2017 at 1:00 PM, seoulguy said:

I'm well aware of the work restrictions for visitors, as well as those who hold temp/perm visas. However, apart from the so-called digital nomads who hop from place to place, I carry my business in my laptop. I need income generated from that business to sustain my retirement. I have no Mexican clients, but I do have clients (lab scientists) all around the world, and I'm mostly paid using PayPal, and I pay SE every quarter.  This business is in its 14th year, and I couldn't just drop it to live somewhere else.  So, would like to hear from those working remotely in Mexico or who, similarly, conduct an online business within the Mexican rules and regulations, if there are any.


If 'seoulguy' is Korean,  he's not covered by the 1993 US-Mexico Tax Convention, and should investigate the Mexico-S. Korean tax agreements.

Since 'seoulguy' references paying 'quarteryly SE', it sounds like he's an American citizen bound by US & Mexican law.

Here's an article, with lots of references on the requirements & basics of US-Mexico tax rules:

https://yucalandia.com/answers-to-common-questions/irs-tax-issues-for-americans-living-and-working-abroad-in-mexico-master-article/

Link to comment
Share on other sites

Any US citizen who works abroad for a US company pays US taxes on his income, not local taxes. Your second point about Mexicans in US is pretty straightforward, in that they would pay US taxes on their US income.

Link to comment
Share on other sites

2 hours ago, tomgates said:

If your business is US based, there is no restriction on you working remotely from Mexico. I did it for 2 years, with remote access to my stock brokerage business in the US. The more relevant issue is the fairly low bandwidth and intermittent outages. There were three layers for me to go thru to get connected and sometimes as soon as I was connected, the internet would "blink" and kick me off and have to go thru the protocols all over again. 

Sure can't be a day trader in this area. I will miss that the most.

Link to comment
Share on other sites

Thanks to all for taking the time and trouble to reply with such precision.  First of all,  'seoulguy' comes from having taught many, many years ago in Pusan and Seoul ROK.  I just use it because I'm old and can remember it. As a Temp visa holder, I will have a Mexico-based address; however, I've had a storefront Las Vegas address for years.  I use it for some banking and PayPal. Second, my business is Internet-based. I am the sole proprietor, and it has been going since 2004. I edit science manuscripts for clients all around the world (none in Mexico). I am primarily paid via PayPal in USD, goes right into my U.S. bank, and, naturally, right out again in quarterly SE.  And, yes, I know about surges, but mostly, I'm working with Word, but I can see where down- and uploading large files might be a problem.  However, the bigger problem is this.  What do I tell the Mexican consulate in Tucson if I have to identify sources of income.  Some is SS, some is interest from a rather large trust, and some is net profit from the business.  I'm told that you have to say you're retired, but if you have to declare a portion of your income as profit from a business, then their attitude would probably be that this person is not retired in the usual sense and decline the visa application.  I call it a consular conundrum.  Any thoughts?

Link to comment
Share on other sites

As far as I know, the MX just look at retirement income.  They don't want you being a drag on their economy.

I would think that SS and the Trust Fund would be counted.

They don't care if you make money in the US or not since they don't tax it.

 

 

 

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...