Corporate Tax in Mexico
- Tax Base For Resident and Foreign Companies
- All legal entities that according to the Federal Tax Code are considered Mexican residents are taxed for worldwide income received, depending of their activity or social object, in any of the following regimes:
- Legal entities of general regimen
- Legal entities non-profit
- Legal entities of simplified regimen
Legal entities that are not residents, must pay taxes in Mexico when they earn an income from a source of wealth located in Mexican territory (income tax and flat rate corporate tax).
|A flat tax (IETU) has been set up. It represents the minimum corporate tax after all deductions.||17%|
- Tax Rate For Foreign Companies
- Foreign enterprises established in Mexico are subject to the same tax system as the national enterprises. However, they profit from certain exemptions.
- Capital Gains Taxation
- A flat tax (IETU) has been set up. It represents the minimum corporate tax on capital gains. The rate is 17%.
- Main Allowable Deductions and Tax Credit
- The expenses for establishing a business can be deductible if they are backed up properly, some of them can be: real estate acquisition expenses, VAT, contributions to third parties, etc. For more information, consult the site of Mexican Federal Tax Administration
- Other Corporate Taxes
- For information on the other taxes levied on companies in Mexico, access Mexconnect.
Country Comparison For Corporate Taxation
|Mexico||Latin America & Caribbean||United States||Germany|
|Number of Payments of Taxes per Year||6.0||33.2||11.0||16.0|
|Time Taken For Administrative Formalities (Hours)||404.0||384.7||187.0||215.0|
|Total Share of Taxes (% of Profit)||50.5||48.0||46.8||48.2|
Source: Doing Business
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
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