January 2024
DISCLAIMER. This page is only intended to assist you in understanding the regulations with which you must comply. We do not claim that the information provided here is comprehensive or current. It is your duty to know and comply with the law. For more information, please contact your local authorities or a local legal expert.
As a digital platform serving as an intermediary for the supply of accommodations located in Mexico, misterb&b has to withhold the Mexican income tax on the revenue generated by individual Hosts (not acting as business). The following are the main aspects of the final payment and provisional payment in relation to the income tax return.
For more information, please refer to this official page on the website of the Tax Administration.
Why is misterb&b withholding the income tax on my revenue?
misterb&b provides a digital platform in order to act as an intermediary between Hosts and Guests for the conclusion of a rental transaction. Therefore, in application of the VAT and Income Tax laws, misterb&b is required to withhold the Income Tax (ISR) and the Impuesto al Valor Agregado (IVA) on the provision, by individuals (i.e., Hosts not acting as business), of accommodations located in Mexico. The withheld taxes are then paid, by misterb&b, to the Mexican tax administration on behalf of the Host. More information about the Mexican taxes withholding in this FAQ.
What is understood by definitive payment and provisional payment?
misterb&b will pay the withheld taxes (ISR and IVA) to the SAT. This payment will be considered by the SAT as either a definitive, or a provisional payment on your behalf. According to the regime applicable, you may have to perform or be relieved from some obligations with the SAT.
Please find below a presentation of each regime. This is not exhaustive, neither maintained up-to-date. This is only to get your started: our strongest advice is to consult a tax specialist to review your situation carefully. Indeed, you must meet certain conditions to opt-in for the definitive payment scheme. You may also consider the fact that tax deductions are not permitted under the definitive payment scheme
| PROVISIONAL PAYMENT | DEFINITIVE PAYMENT |
| Regime applied by default | Only allowed if the total annual income less than 300,000 pesos per year |
| Payment is provisional | Payment is definitive in nature |
| You must file monthly and annual tax returns to the SAT. More information here | You are relieved from filing certain tax returns to the SAT |
|
Your retain the right to apply for authorized deduction on the ISR and IVA due (claim of deductible expenses) |
No tax deduction allowed |
How can I opt-in?
By default, tax withholding by misterb&b will be considered provisional. If you want it to be a definitive payment, and you are eligible for it (see conditions above) : you have to opt-in the definitive payment regime.
File a notice before the SAT in which you state your willingness to file definitive payments : more information about the notice here. To enter the declaration you must have your RFC and password or e. Signature.
Once your choice for definitive payments is made, it will be applied for 5 years - unless you do not satisfy the conditions anymore (then the tax withholdings will automatically be considered provisional again).
What happens in the case of partial/total refund to my Guest?
On some occasions, you may refund money (fully or partially) directly to a Guest (e.g. as a resolution to a subsequent dispute about the stay). This may happen while we have already withheld taxes on the Host’s income. In such occasions, you need to recover those taxes that were overwithheld.
The way to proceed will depend on the option chosen for the tax withheld (whether it is considered a final or provisional payment).
- Final payment. If you chose to consider the withholding made by mister&b as definitive payment, you must issue a document (Nota de Crédito) to state a reduction of the income. In cases of total refund because of a cancellation, instead of issuing this document, you must cancel the invoice issued for the income. Once this is done, you can request a refund from the SAT of the excess tax withheld, i.e., the tax corresponding to the amount of the refund or cancellation made (see 6/PLT Solicitud de devolución de pago de lo indebido del IVA, por cancelación de operaciones efectuadas a través de plataformas tecnológicas contenida en el Anexo 1-A RMF 2021).
- Provisional payment. If you chose to consider the withholding made by mister&b as definitive payment, you must issue a document (Nota de Crédito) to state a reduction of the income. In cases of total refund because of a cancellation, instead of issuing this document, you must cancel the invoice issued for the income. Once this is done, the refunded or canceled amount will be deducted from your income when calculating your provisional payment, and the tax refunded will also be deducted from the tax payable when calculating your monthly payment.