What is an RFC?
The RFC (Registro Federal de Contribuyentes - Federal Taxpayer Registry) is a unique registration number issued by Mexico's tax collection agency, the SAT (Servicio de Administración Tributaria). The SAT is Mexico's equivalent to the IRS in the United States and has offices in every state throughout the country.
Types of RFC
There are two main categories of RFC:
- For individuals (Persona Física) - Similar to a US Social Security number
- For businesses (Persona Moral) - Similar to a company tax registration number
Who Can Apply for an RFC?
As of 2023, the SAT requires all Mexican citizens and residents over 16 to obtain an RFC, even if they don't plan to run a business or work in Mexico. This includes:
- Mexican nationals
- Legal foreign residents with temporary or permanent residency cards
- Note: Visitors and tourists cannot apply for an RFC
This measure was enacted to combat money laundering and develop a method to ensure that proper taxes are collected from businesses and the general population.
RFC vs. CURP: What's the Difference?
No, CURP is not a form of RFC. The CURP (Clave Única de Registro de Población - Unique Population Registry Code) is different from the RFC:
- When you obtain legal residency in Mexico, you automatically receive a CURP
- You must apply for an RFC separately
- CURP is usually printed on your residency card, but not always
- Key difference: The CURP tells the government who you are, while the RFC tells the government what you do economically
What is an RFC Used For?
The RFC is used to track business and commercial transactions, payments, and expenses for tax reporting purposes:
- Employers use it to report income tax withheld from employee salaries
- Businesses and entrepreneurs use it to report taxable income and expenses
- Individuals can use it to claim certain tax deductions (e.g., medical expenses)
- Property owners need it to claim capital gains tax exemptions when selling property
- Banking: Banks require an RFC to open accounts in Mexico
- Vehicle purchases: Car dealers require an RFC when buying a car in Mexico
- Utilities: The electricity company may ask for it if you apply to have an electric circuit installed at your home in Mexico
What is a Factura and How Does it Relate to RFC?
A Factura is an official tax invoice linked to both the seller's and buyer's RFC:
- Required for claiming business expense deductions
- Must be requested within 30 days of purchase
- Simple receipts are insufficient for tax purposes
- When requesting a Factura, the seller will ask for your RFC
- All electronic: Facturas are requested and issued through the SAT's online system
- CFDI 4.0: As of 2025, Mexico uses CFDI 4.0 (Comprobante Fiscal Digital por Internet), which validates RFC information in real-time during every invoice transaction
How to Apply for an RFC in Mexico
2025 Updates: Online and In-Person Options
Recently, SAT announced the ability for citizens of Mexico who are "personas fisicas," or individuals who are not businesses, to obtain their RFC without having to step foot in the SAT offices. However, the process still requires making an appointment.
Required Documents
You'll need to bring:
- Printed copy of your CURP (available online at https://www.gob.mx/curp/)
- Residency card (temporary or permanent)
- Official ID (passport is recommended)
- Proof of address (original utility bill not older than 90 days - doesn't need to be in your name)
- Mexican phone number
- USB flash drive (for some offices)
- Letter of intent (may be required for temporary residents at some SAT offices)
Application Process
- Make an appointment at citas.sat.gob.mx
- If no appointments are available, join the waiting list for email notifications
- Wait time: Appointments may take several weeks or months
- Attend in person at your local SAT office with all required documents
Professional Help
Consider hiring a local accountant to help with the process, especially given the complexity of Mexican tax law.
Important 2025 Requirements: Buzón Tributario
What is Buzón Tributario?
Starting January 1, 2025, all taxpayers registered in the RFC must have an active Buzón Tributario (Tax Mailbox), with some specific exceptions. The Buzón Tributario is a digital communication channel between the SAT and taxpayers.
Who Must Activate It?
All individuals and businesses registered in the RFC, except for: persons with canceled or suspended tax status, individuals without tax obligations and without economic activity, and employees with income below 400,000 pesos in the previous year.
Deadline and Penalties
- Deadline: December 31, 2025 (extended from previous deadlines)
- Penalties: Failure to activate can result in fines of 3,850 to 11,540 Mexican pesos
How to Activate
- Access the SAT portal (sat.gob.mx)
- Log in with your RFC and password or e.firma
- Register at least two contact methods: email and Mexican phone number
- Confirm your contact information within 72 hours
RFC Format and Structure
For Individuals (13 characters)
- First 4 characters: Derived from name and surname
- Next 6 characters: Birth date (YYMMDD)
- Last 3 characters: Homoclave (unique identifier assigned by SAT)
For Businesses (12 characters)
- First 3 characters: Company name abbreviation
- Next 6 characters: Incorporation date (YYMMDD)
- Last 3 characters: Homoclave
Special Circumstances
Generic RFC Numbers
For certain transactions, generic RFC numbers are used:
- XAXX010101000: For individuals with residency in Mexico
- XEXX010101000: For individuals with residency outside Mexico
Foreigners and RFC
According to the 2025 Tax Resolution, foreigners who need to register for an RFC may include residents in Mexico with legal temporary or permanent status, and foreign individuals who will carry out economic activities in Mexico.
Mexicans Living Abroad
The SAT and Ministry of Foreign Affairs signed an agreement allowing Mexicans living abroad to register for an RFC from anywhere in the world through the Virtual Office.
Consequences of Not Having an RFC
Without an RFC, you cannot:
- Claim tax benefits or capital gains tax exemptions when selling property
- Open bank accounts in most Mexican banks
- Purchase vehicles from dealerships
- Issue or receive official Facturas
- Conduct legitimate business operations
- Access certain government services
Professional Assistance
Given the complexity of Mexican tax law, it's highly recommended to:
- Hire a local accountant familiar with SAT regulations
- Ensure they're up-to-date with current rules
- Get advice on organizing income and expenses
- Simplify reporting requirements and form submissions
Key Takeaways for 2025
- Mandatory for all residents over 16: Even if you don't work or do business in Mexico
- Buzón Tributario is required: Must be activated by December 31, 2025
- CFDI 4.0 compliance: Real-time validation of RFC information
- Online options available: For some individual applications
- Professional help recommended: Due to increased complexity and requirements
Additional Resources
- SAT Website: sat.gob.mx
- Appointment Booking: citas.sat.gob.mx
- CURP Lookup: https://www.gob.mx/curp/
- Professional assistance: Consider hiring a local Mexican accountant