ISAI appraisal - Taxes on property acquisition
What are taxes?
A tax is a part of the transactions we do every day , when buying anything, from an item at the mall to going to the gas station or paying for a service, it is a contribution to keeping our country running, no matter how incredible it may seem, this extra charge helps different nations carry out activities economic.
In Mexico, the Ministry of Finance and Public Credit (SHCP) It is the authority in charge of administering and collecting federal taxes. The SHCP is responsible for establishing fiscal policies, as well as supervising and regulating tax collection at the federal level.
At the state level, each federal entity has its own Finance Secretary or equivalent, responsible for administering and collecting local taxes, such as payroll tax and property tax.
Therefore, in Mexico, tax collection is a shared responsibility between the federal government and state governments.
What are direct and indirect taxes?
Indirect taxes: These are charged when some other item is purchased, as an additional amount to the original in general, that is, for everyone who purchases said product.
Direct taxes: These taxes are proportional to what each person earns and the assets they possess, in this case the real ability to pay is taken into account, calculating an amount according to what their assets are.
In Mexico there are taxes:
feds: Which are the most common taxes, what each taxpayer pays, both citizens and foreigners who carry out an economic activity in Mexico, such as; ISR, VAT, IDE, etc.
State: They change according to the state where we live or we are, it can be the tenure, civil registry, the notary or the payroll tax.
municipal: These taxes collected by governments locally, according to the municipality will be the tax as; the property tax, that of public shows, tax acquisition and patrimony.
What taxes does a company pay in Mexico?
Companies that carry out economic activities in our country are obliged to comply with tax requirements such as:
Income tax: The ISR It is paid each time a fiscal year arises through a declaration, that is, people with business activity or individuals must pay it each established period.
Special tax on production and services (IEPS): This tax is for people who sell alcoholic beverages, beer, uncrystallizable honey, gasoline, manufactured tobacco and diesel, energy drinks, drinks with added sugars, fossil fuels, pesticides and foods with high calorie content.
These are some of the taxes that a company must pay in Mexico.
What taxes are paid for the acquisition of real estate?
He ISABI in EDOMEX it is the tax on the acquisition of real estate, which is a contribution on the acquisition of a land, house or apartment in order to support the Ministry of Finance and Public Credit (SHCP) Since the buyer is the owner of the property that was acquired, this tax on the acquisition of the property is also called “transfer of ownership” because when making the purchase, one of the procedures that must be carried out is the change of owner before the Directorate of the Municipal Cadastre, where it is recorded that the property changed its name.
The buyer is in charge of paying this tax because it is a benefit for him, it is paid at the time of making the deed, it is also applicable when a land is acquired, a construction or land is made.
The only two cases in which paying this tax can be forgiven is when:
1. Property is inherited or property is donated during life
2. When sold to an educational or charitable company or foundation
The payment of this tax does not consider the state in which the property is located, only a value that is considered cadastral, which is the amount with which it is valued and the one that appears in the official document, for this it is necessary to carry out a property appraisal .
What is a property appraisal?
Real estate appraisals are studies that determine an estimate of the value of a property on a specific date., this value is determined through a technical opinion which is based on the physical characteristics of the property, location and the current state of the real estate market.
The aspects on which this type of appraisal is based are:
- Age of the property
- Type of finishes
- State of conservation
- The quality of construction materials
- special facilities
- Installation of gas, electricity and hydraulics
- Street lighting
- Public transport that passes through the area
- zone security
- Shops, shopping centers near the property
- Nearby services such as: hospitals, schools, etc.
- Ease of access to the property
Both internal and external factors are taken into account for the valuation of a property, including factors such as the market price.
Types of real estate appraisals:
Determination of income