Why UPWORK is witholding the tax 1%/ 20% already for 3 weeks when it doesn´t have the RFC? Can´t UPWORK just wait to have the RFC and then start witholdingn the fee, when it corresponds?
Thanks for the information.
Are you going to let us know when will we be able to see those new statements (monthly digital invoices with the tax retention, RFC from upwork, etc) in the platform?...Thanks in advance!
Hello, in order to accomplish tax regulations here in mexico, I need to generate invoices to upwork according to my accountant, that means that I need to write the upwork's rfc on those invoices, will upwork have a rfc soon?
It's been a while since we have heard an update on the matter, I know Upwork is not looking to charge IVA which is great, because it means you'll have to send us a mexican deductible invoice, and 100% will be deductible for us. Also, that invoice must contain the RFC that everybody has been asking.
OR I have been thinking for a while that it is possible you guys are instead of providing the RFC so we send and invoice to UPWORK, find a way where our invoice is sent to the person who hired as and that invoice is valid in México. (That would be cool), but let's what happens. It's been several months, it would be nice to at least acknowledge that this is still something we are waiting for. It is a legal obligaton for UPWORK to release this information after all.
Like I mentioned, the news on VAT is great! But Value Added Tax and Income Tax are two different things. What is keeping mexicans awake at night is not VAT, rather Income Tax which in México is ISR. So it's not really an update to the issue, more like an additional piece of information that we did need, but it doesn't solve the core problem where Upwork is not being forthworth about how they are going to handle the income tax situation.
The core problem is Upwork is retaining taxes, but it hasn't released a TAX ID called RFC in México. And it hasn't explained the nature of their relationship with SAT (the Mexican IRS) so our accountants can't know how WE should declare our own taxes. This ambiguity has been going on since February and it's starting to get annoying, as well as ilegal.
From what I understand if Upwork is going to give us an invoice for their services, and our client is not going to be "Upwork" then basically Upwork shouldn't be retaining ISR. I am just as confused as everybody else. So if there is something I am not seeing, someone please explain. Also we will know UPWORK's RFC in the first invoice we get from them, but would we still need it. They are technically not going to be our clients.
Hey Up Team!
I have been happy freelancing on Up for the last 4 years, I have paid my taxes and also Up fees.
Yes, we have a new law for "Digital Platforms" in the "Resolución Miscelánea Fiscal" available to download here
Netflix increased the prices in Mexico during quarantine because of this new law https://www.world-today-news.com/netflix-raised-its-prices-in-full-quarantine-in-mexico/
Due to the lack of information on how Up changed or added this new Up policy, I have some comments.
Come on guys! a lot of Mexicans are freelancing in Up, the new law should not apply to Up because Mexicans are being hired by Up clients! these new taxes on Digital Platforms providing Digital services are supposed to apply to those companies that don't fulfill a basic need e.g education or working! (this new tax applies to platforms that are considered a "luxury" and not a basic need, like Netflix)
Please ask your legal team to find out more about the new law, the Mexican government will not charge additional or new taxes to platforms such as Up that puts us in contact with potential clients and helps us meet a basic need, which cannot be covered by the Mexican government.
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