In this page: Corporate Taxes | Accounting Rules | Consumption Taxes | Individual Taxes | Double Taxation Treaties | Sources of Fiscal Information
Corporate tax | 30% |
Agriculture, livestock, fishing, and forestry activities | 30% reduction of their tax liability |
Start-up expenditure incurred prior to the commencement of business may be amortised at the yearly rate of 10%, after applying the adjustment factors. The deduction of charitable contributions is limited to 7% of the taxable income of the previous year.
R&D expenditure (including investment in R&D) gives rise to a 30% tax credit.
In order to be deductible, payments related to technical assistance, the transfer of technology, or royalties must be made directly to companies with the required technical capabilities to provide the corresponding service. Payments to foreign affiliates are deductible if they respect the arm's-length principle.
Net operating losses can be carried forward up to 10 years (15 years for deep-water operations related to oil extraction activities), subject to adjustments for inflation. The carryback of losses is not permitted.
Non-deductible items include penalties, unauthorised donations, contingencies, indemnities, goodwill, exempt salaries, etc.
Companies engaged in oil exploration and production are subject to a special tax regime as set out in the Hydrocarbons Revenue Law.
Social security contributions are based on the daily salary plus any other compensation paid to the employee, with rates varying according to the base salary of their Mexican employees and the type of concepts for which the compensation is given to the employee (ranging from 15% to 25%).
The acquisition of new vehicles is subject to taxation, while the different states may impose a tax on the ownership of vehicles. Mexico does not levy stamp duties.
Mexico | Latin America & Caribbean | United States | Germany | |
---|---|---|---|---|
Number of Payments of Taxes per Year | 6.0 | 28.2 | 10.6 | 9.0 |
Time Taken For Administrative Formalities (Hours) | 240.5 | 327.5 | 175.0 | 218.0 |
Total Share of Taxes (% of Profit) | 55.1 | 46.8 | 36.6 | 48.8 |
Source: Doing Business - Latest available data.
- The balance sheet, which reflects the financial situation of the enterprise and provides information about the assets, liabilities and capital on a particular date (the last day of the fiscal year).
- The profit and losses report, reflects the income, expenses, loss and profit obtained during that particular period (typically each trimester or fiscal year).
Annual Tax Rates for Resident Individuals | Vary from 1.92% to 35% (2022) |
from MXN 1 to 7,735.00 | 1.92% |
from MXN 7,735.01 to 65,651.07 | 6.4% |
from MXN 65,651.08 to 115,375.90 | 10.88% |
from MXN 115,375.91 to 134,119.41 | 16% |
from MXN 134,119.42 to 160,577.65 | 17.92% |
from MXN 160,577.66 to 323,862.00 | 21.36% |
from MXN 323,862.01 to 510,451.00 | 23.52% |
from MXN 510,451.01 to 974,535.03 | 30% |
from MXN 974,535.04 to 1,299,380.04 | 32% |
from MXN 1,299,380.05 to 3,898,140.12 | 34% |
over MXN 3,898,140.12 | 35% |
Business owners and independent professionals can generally enjoy the same deductions as corporations.
More information regarding deductions can be found on the Mexican Federal Tax Administration website.
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Latest Update: June 2023