Professional Services Regime: Who Qualifies and What You Get
A guide for self-employed lawyers in Mexico regarding tax structures and withholding requirements.
This regime provides a specific tax structure for self-employed professionals to manage and report their independent income. It is designed to organize how individuals earning money through their professional expertise handle their tax obligations.
Who it's for
This scheme is specifically for self-employed lawyers who operate as independent professionals. If you are working as a lawyer without being a direct employee of a company, this is the category that covers your professional activities. It is meant for those providing legal services to clients on an independent basis.
What you get
By using this regime, you obtain a formal tax structure for your independent income. This framework allows you to operate legally as a professional, providing you with the necessary status to issue billing for your services. This structure is the official way to manage your professional earnings and ensures your income is recognized by the relevant authorities.
What it costs you
Operating under this regime requires regular financial commitments. You are responsible for making monthly provisional tax payments based on your earnings. These payments are part of your ongoing obligation to stay compliant with the tax system as you earn income from your legal practice.
The catch to know
There is a specific rule regarding how you are paid by corporate clients. When you bill a legal entity (a company) for your services, that company is required to withhold 10% ISR from your payment. This means the total amount you receive in your bank account may be less than the full amount you billed, as the tax is deducted at the source by the client.
How to apply
- Register your professional activities with the tax authority to establish your status.
- Set up your electronic invoicing system to allow for the issuance of formal bills for your services.
- Organize your records to track your professional income and the various payments you receive.
- Monitor your monthly obligations to ensure your provisional tax payments are handled correctly.
- Visit the official tax portal to manage your filings and check for any updated requirements.