Registration requirements and fees
Are there any registration requirements, or any fees/taxes payable?
It is necessary to have either a registration or authorization from the Ministry of Interior through the GOG for any of the limited authorized games that involve chance and prize draws as discussed above.
In addition, there are certain government duties to be paid, such as participation on earnings by the government, fees for inspections and registration of the prize draw, etc.
As an example, a government duty of MXN$ 1,695.80 (approx. US$88) is to be paid for each of the inspections to be carried out by the GOG (i.e. inspection prior to the issuance of the authorization or the delivery of the prize to the winner).
Further, if the prize is not collected by the winner, the organizer needs to deposit such unclaimed prize, either physically or its value in cash, before the GOG.
The Income Tax Law provides that Income Tax may be withheld from the prize winner and be payable by the prize promotion organisers for the income generated to the prize winner. This only applies for prize draws organized in Mexico. The percentage is 1% over the total amount to be distributed among the winning tickets in states where there is no income tax for prize draws or such tax is not higher than 6%. However, in the states where such state tax is higher than 6%, the federal tax increases to 21%. The tax should be withheld by the party making the payment, and it is considered as a final tax, which must be remitted to the Mexican Tax Authorities. In cases where a corporation or a non-profit organization receives this type of income, they may be relieved from a withholding tax; but should report it separately (Art. 138).
Notwithstanding the above, if an entity or individual intends, exclusively, to conduct a promotion, it is only required to notify or obtain an authorization before the Consumer Attorney-General ('Profeco') if such notification or authorization is required by any Compulsory Official Standard or could potentially harm the consumer (Art. 47 Consumer Law). A promotion is a prize draw involving a product or service provided by the promoter.