Airbnb withholding taxes for Mexican government- what are hosts doing?

[Nancy22]

I would like to ask what others are doing with regards to the huge amount of withholding tax Airbnb is keeping and handing over to the Mexican government? 

I just spent 2 hours talking to 3 Mexican accountants about this, and they were at a loss. They felt strongly that the tax responsibility is that of the host/owner and NOT Airbnb. They are withholding the maximum and even with filing expenses, it is virtually impossible to get a refund.  They actually suggested that I list my property with another platform, naming FB Marketplace, or VRBO. I am so frustrated. There seems to be no way to reduce what they are withholding and yet no way to get a refund with all my expenses.  

??? Que pasa? 

[Derick181]

Hi Nancy, 

They just started withholding tax on my Cabo property. Did you ever find a solution for this?

[Ted385]

Airbnb is taking 47% of  what a guest pays  for Mexico 3 taxes and there fees.. 20% withholding tax. 16% IVA tax 3% Cabo tax... This is wrong and looking for another platform

[Nancy22]

Hello Ted and Derick too... 

I just did the math on a check-in I had today, and I got very similar results.  My guests paid 41% more than I received- that is huge. It's odd because my remitted occupancy tax is 16%, but the guest paid 19%.  If it confusing. To receive a reasonable net amount, I have to charge- obviously more that 40% over and above "my price".  Crazy, my guests are always shocked. 

I have my RFC (tax id in Mexico) and file monthly. This of course has to be done through an accountant, and I see absolutely no benefit to filing, because there is zero chance I will get a refund, and there is not change in the amount of withholding tax either.  It is suspect that my "remitted occ tax" is 16%, sounds like IVA to me?? So, which part is withheld "income" tax?

To file is costing me around $70 CAD /month- another expense. I am pretty done with this. Need to find another way. I should be paying nothing in tax, when I make less than that first tax bracket, makes no sense at all. 

THIS IS FROM SAT  (aka IRA CRA). I barely break the first bracket. 

• The tax is not paid for the first 125,900 pesos.

• The rate of 15% is paid when income is more than 125,900 pesos up to one million pesos.

• The rate of 30% is paid when the income received exceeds one million pesos.

It appears no one at Airbnb cares to explain or help either- not great to treat your clients this way. 

Nancy

[Monica2168]

What did you wind up doing? If you have a RFC that means you got the temporary visa. I thought without the RFC Airbnb would withhold 20%.

Did you decide to not use RFC and instead transfer funds to US account and just write off on US taxes?

Thanks

Monica

New Cabo Mexico Host