Sebastián Ramos; Expert in migration, sales and public relations
The Federal Taxpayer Registry is an alphanumeric code used by the government to identify individuals and entities engaged in economic activities in our country.
This code consists of 13 characters for individuals and 12 characters for legal entities. Among the tax regimes highlighted by Condusef (National Commission for the Protection and Defense of Financial Services Users) as the most important are:
- Wages and salaries: this includes individuals whose income comes from providing a service to a third party (subordinate personal service). Those under this system are individuals who work for a company or government agency.
- Provision of professional services: this includes individuals who offer a service independently. Working freelance as a doctor, dentist, architect, engineer, among others.
- Simplified Tax Incorporation Regime: this groups together small traders. Individuals under this regime operate a business or trade, such as general stores, beauty salons, mechanical workshops, grocery stores, among others. This modality has the benefit that taxpayers do not pay taxes in the first year after opening their business and have social security. They can also request support such as loans to start or grow their business.
- How to obtain the RFC?
- To apply for the RFC, it is necessary to have the CURP (Unique Population Registry Code), be a citizen or resident of Mexico, and be at least 18 years old.
- What uses can the RFC have?
The RFC has various uses and applications in the fiscal and administrative fields, including:
- Fiscal compliance: The RFC is necessary to carry out any type of economic activity in Mexico, such as the sale of goods or the provision of services, as it is used to identify taxpayers before the Tax Administration Service (SAT) and comply with their tax obligations.
- Issuance of invoices: To issue tax invoices, both physical and electronic, it is necessary to have an RFC registered with the SAT. The invoice must include the RFC of the issuer and the recipient.
- Opening of bank accounts: To open a bank account in Mexico, it is common to be required to provide the RFC, as banks use it to identify customers and comply with anti-money laundering regulations.
- Employment contracts: Both employers and employees must provide their RFC when formalizing an employment contract. This facilitates registration with the SAT and compliance with tax obligations related to salary and labor benefits.
- Government procedures: In various procedures with government institutions, such as obtaining licenses, permits, registration in social programs, among others, it may be necessary to provide the RFC as part of the required documentation.
- Foreign trade: In the case of companies engaged in import or export operations, the RFC is used in customs procedures and to comply with tax obligations related to international trade.
In summary, the RFC is a fundamental tax identifier in Mexico used in a wide range of commercial, financial, and administrative transactions to comply with tax obligations and to identify taxpayers before the relevant authorities.
