Mexico Income Tax Withholding for Mexico-based resident sellers

The Mexico Government has introduced new tax reform legislation that requires Amazon to act as the income tax withholding agent on your monthly total sales.

Beginning June 1, 2020, Amazon will begin to calculate income tax based on your total monthly sales and remit the withheld amounts to the Mexican Tax Authority.

Your Registro Federal de Contribuyentes identification number (RFC ID) will determine the amount of income tax withholding Amazon will calculate on a monthly basis.

Non-Registered Sellers: Amazon will calculate 20% income tax on your monthly total sales if you do not have a valid RFC ID on file, and remit those amounts to the Mexican Tax Authority.

Individual Registered Sellers (persona fisica): If you have a valid RFC ID registered on your Seller Account, Amazon will calculate a rate of 0.4%-5.4% income tax based on your monthly gross sales, and remit those amounts to the Mexican Tax Authority.

Entity/Business Registered Sellers (persona moral): If you are a business and have a valid RFC ID registered on your Seller Account, Amazon will not withhold any income tax on your monthly sales.

If you are about to register or currently have an RFC ID for tax purposes, do not delay and provide your registration information to Amazon:

1. Click here to go directly to the RFC ID registration page; or,
2. In Seller Central, go to Settings and select Account Info.
3. Locate the Tax Information section and click RFC ID.
4. Enter your RFC ID.
5. Click Update.
6. Close the page or click Back to return to your Account Info page.