Jurisdictions for Mexico

A jurisdiction represents a physical territory, such as a country or state where a particular piece of legislation applies. All legal entities are registered against a jurisdiction that's governed by a legal authority.

A legal jurisdiction is a combination of the legislative category (such as labor law or income tax law) and the physical territory (such as a country or a state) to which legal rules are grounded.

You need to set up jurisdictions before you create registrations, because a jurisdiction is required in the registration process. The jurisdiction has a start date and end date to show when the jurisdiction is effective and when you can register against the jurisdiction.

A tax jurisdiction is a geographic area where a tax is levied by a specific tax authority. You must set up at least one tax jurisdiction for a tax before you can make the tax available for payroll transactions.

Identifying Jurisdiction

The identifying jurisdiction is usually the first jurisdiction that the legal entity must register to be recognized in its territory. The registration to the identifying jurisdiction of the legal entity territory is called the identifying registration. This table specifies the jurisdictions that have been identified for Mexico.

Jurisdiction

Territory

Legislative Category

Registration Code

Purpose

Mexico Federal Tax

Mexico

Federal Tax

Federal Taxpayers Registry (RFC)

Federal Tax

State Income Tax

State

Income Tax

RFC

Income Tax

Mexico Social Insurance

Mexico

Social Insurance

Social Insurance Number

Social Insurance

Note: State Income Tax uses the same registration number as Federal Tax. The Mexico Federal Tax jurisdiction is the only predefined jurisdiction.