I am a foreigner who purchased a car in Yucatan in 2011. It came to my attention that individuals are exempt in 2012 from paying a “tenencia”...
(an automobile/any transport vehicle yearly "ownership tax", originally established to help finance the 1968 Olympic Games). When going to apply for this exemption, I was told that a foreigner had no such benefit. Is that correct?
Pursuant to Article 3, Section VII of the Decree, published in the Official Gazette of the State of Yucatan (Diario Oficial del Estado de Yucatan), December 30, 2011 and through which the tax payment for ownership and use of automobile/any transport vehicle tax is exempted and which further grants administrative facilities for fiscal year 2012, those who shall enjoy this exemption are specified, namely.
In the absence of the definition of "permanent residence" in the Immigration Act, we interpret that the foreigners who shall enjoy the benefit of being exempt from this tax are Permanent Residents or immigrants, that is, those individuals who after having resided in the country for 5 years as temporary residents or immigrants obtained such migratory status.
Now then, according to Official Letter No. 600-04-04-2010-67607, dossier SAT-325-04-01-/379/08, dated May 4, 2010, issued by the Central Administration of Internal Revenue Regulations of the Tax Administration System, established that, for purposes of the Income Tax Law, a foreigner who has either the migratory status of immigrant (FM2) or Permanent Resident shall pay taxes like any other individual taxpayer, regardless of nationality, being that said individual is considered a legal resident in Mexico for tax purposes.
Therefore, we believe that a foreigner with the migratory status of immigrant (FM2), may be exempt from the referred-to tax; although, should this point be contested, and the authority possibly not agree, it could result in an ensuing Court decision on the matter.
A foreigner with the migratory status of permanent resident (“inmigrado”) will have no problem in being exempt from this tax.
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