Corporate Tax in Mexico

Overview by
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).


Tax Rate

Corporate tax 30%
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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