Remittances are a way for workers abroad to send money to their families and friends. It is a form of economic support in those countries whose economies are very fragile or volatile.
If you receive or send remittances from abroad, here are some very useful information for you to consider.
What is a remittance?
La remittance It is a very common way of sending money, or as a form of payment or collection. It is a widely used system for Sending money to family members and friends who live in another country.
This is a typical case when people Migrate abroad in search of better employment and financial opportunities. In such cases, part of the profits generated abroad are deposited to families that remained in their countries of origin. That constitutes the shipment.
Importance of remittances for Mexican families
The number of Mexican migrants who leave for the United States or Canada each year is very large, so remittances have become vitally important in the economy of Mexican families.
Many times, Remittances can represent as much as 50% or 60% of a family's income, while in relation to the salary of the worker who sends the money, it does not represent a large amount of money, resulting in a benefit for both parties.
The role of remittances is so important that it even has a day of celebration. Specifically, the June 16 is the International Day of Family Remittances, in commemoration of all those workers who support their families from abroad.
Impact on the national economy
Remittances have a clear and enormous impact on the national economy. First of all, they are the reason why so many families can activate the local and regional economy through intake, both of basic goods and of other products or services.
But in addition, there is a very important fact to keep in mind. According to studies and calculations carried out by government organizations and banking institutions, In Mexico, remittances represent almost 4% of GDP.
With this number in mind, it's easy to deduce the impact that remittances have on society, mainly in low-resource sectors, which are usually mostly rural areas.
Do remittances pay taxes?
According to Mexican law, remittances can be collected without the need to pay taxes, but only up to a certain amount.
This occurs because sending remittances does not in itself constitute an act of collecting money for the provision of services or marketing. But rather, they can be classified as a donation, which makes it very difficult to monitor them.
Federal Tax Act and its Application
What was said in the previous paragraph corresponds to Article 93 of the Federal Income Tax Act.
As stipulated in article 93, Donations are exempt from paying taxes, provided that the following requirements are met:
- It is carried out by the taxpayer to an immediate family member (parents, children, spouses);
- That it is not alienated by third parties;
- If the total amount of donations received in a year does not exceed three times the general minimum wage.
If the amount equivalent to the three minimum wages is exceeded, a percentage of taxes must be paid.
Direct and Indirect Taxes
It is worth mentioning that, when we talk about taxes, we are not only talking about the taxes levied on a certain financial action that we carry out, but also, there are those taxes that we do not see and that are included in the price of the goods and services we consume.
We are talking about direct and indirect taxes. These can be defined according to two fundamental aspects, the object of the tax and its scope.
Depending on the purpose of the tax:
- Direct: they tax the capital of income or assets;
- Indirect taxes are imposed on the consumption or transfer of goods.
Depending on the scope of the tax:
- Direct: taxed according to the taxpayer's economic capacity;
- Indirect: depending on consumption, they concern all taxpayers equally.
Sending remittances through Félix Pago
With Félix Pago, sending remittances has never been so quick and simple. Thanks to our system that operates using only the WhatsApp app, you can send money whenever you want from the United States to Mexico, Guatemala and Honduras.
The remittance can be received both in the form of a bank deposit and also in cash, which can be withdrawn at any of the stores or physical points allied to Félix. The operation is very simple, it has a very low cost and it's processed very quickly: in just a few minutes, your transfer will be complete.
In addition, we work with a system regulated by financial and government entities in the United States to provide you with all the security and support when it comes to managing your money.
