Mexico Income Tax

[Shibani1]

We have had our Airbnb listing in Puerto Vallarta, Jalisco for 2 years. Earlier this year Airbnb started withholding income tax (20%) on all payouts. We were asked to provide and RFC which we do not have and getting an appointment at the consulate in California is impossible. We need the temp residency in order to get the RFC. I was ok with this as sooner or later I will be able to get my residency and the RFC. Today, they started withholding the entire amount of the rental. I was told that Airbnb will not pay me for rental money collected (all of it) if I don't update with an RFC number. At this rate, I will have to pull my listing form their platform. Has anyone else experienced this. For 9 months I was being paid out the rental amount minus their commission, VAT and Income tax and now, nothing.

[Emilie]

Hi @Shibani1, 

I wanted to check-in, and see if you'd made any progress on this one since your post here? 

There's more info here on hosting in Mexico, which might be handy. @Karen3152 also shared some fantastic tips in this post about hosting in Mexico while being a US resident - I'd recommend having a look if you can as it might help you out! 

Thanks, 

Emilie

[Shibani1]

Emilie,

The problem we are facing currently is that, there are no appointments available for us in California to obtain a residency visa. At least in California they are not accepting any appointments for residency visas until further notice. Without residency we cannot obtain the Tax ID in Mexico so we are stuck. Meanwhile it is illegal for Airbnb to withhold our entire rental amount and we are pursuing that through a lawyer here in the USA. This might warrant a class action lawsuit. To reiterate, we are fine with Airbnb withholding the 20% income tax but they should disburse the remainder amount.