Remittances to Mexico will NOT be taxed in THESE cases

Mexican PresidentClaudia Sheinbaum spoke this Monday at the start of "La Mañanera del pueblo" (The People's Morning Show) about the tax that will be imposed on remittances sent by Mexicans in the United States to the country, which was lowered from 3.5% to 1%, although this tax, she clarified, will only be applied in certain cases.

During her morning press conference at the National Palace, the President described the U.S. Senate's reduction of the proposed remittance tax to 1% as a "very important" achievement, after initially proposing 3.5%. This tax would apply to cash transfers, money orders, cashier's checks, or other similar instruments.

"In the case of remittances, there are, I would say, very important achievements, and that achievement belongs to our fellow countrymen and women, primarily due to the sending of letters to their senators, especially those who have dual nationality," said President Sheinbaum.

He pointed out that The 1% tax will apply to remittances sent in cash, while transfers will not incur a charge.

"All electronic transfers have 0% tax, and more than 90% are sent electronically," the President noted.

A chart for 2024 was presented in the Treasury Room showing that of the $16.747 billion in remittances, $16.138 billion was sent electronically, while only 0.7% ($481 million) was sent in cash or in kind, and 0.2% ($128 million) was sent through money orders.

Mexico received a record $65 billion in remittances in 2024, representing nearly 4% of its economy, making it the second-largest recipient of these currencies in the world, behind only India.

The Mexican government has criticized the proposed 3.5% tax on remittances sent by migrants to their families, considering it a violation of the 1994 bilateral treaty against double taxation.

*With information from EFE

*Stay up to date with the news, join our WhatsApp channel

Read also: Can you get a discount on your electricity bill with an Inapam card?

OF