Taxes and Accounting in Mexico
- Tax Year
- The fiscal year begins on January 1st and ends on December 31st of the same year.
- Accounting Standards
- The Accounting system used in Mexico is modern and international. It follows the same double ledger pattern, which is compatible with most of the European accounting systems. Mexican GAAP with incresing conformity to international standards.
- Accounting Regulation Bodies
- Mexican Council of Investigation and Development of Financial Information Standards
- Accounting Reports
- There are two essential structures:
- The balance sheet, which reflects the situation of the enterprise and provides the information about the assets, liabilities and capital on a particular date (the last day of the fiscal year).
- The profit and losses report, which shows the results of all financial activities of the enterprise in a given period of time, could be each trimester or each year. It reflects the income, expenses, loss and profit obtained during that particular period.
- Publication Requirements
- The balance sheet, the profit and loss account staments and the daily ledger are mandatory. Accounts are published annually.
- Professional Accountancy Bodies
- Mexican Institute of Public Accountants
School of Public Accountants of Mexico
- Certification and Auditing
- Companies have to seek a statutory auditor to conduct an annual audit of the financial health of their organization. You can contact an external auditor: Deloitte & Touche , Price Waterhouse Coopers.
- Accounting News
- Nature of the Tax
- VAT (Value Added Tax) called "Impuesto al Valor Agregado - IVA"
- Tax Rate
- 16% - Value Added Tax Laws
- Reduced Tax Rate
- 11% for the activities of enterprises located in a frontier zone. Exports are subject to a rate of 0%, as well as basic foodstuffs, agricultural services related to the production of them and medicines.
- Other Consumption Taxes
- Special Production and Services Tax Law (applied to alcoholic beverages, elaborated tobacco, gasoline and diesel). Laws for New Automobiles.
- Company Tax
- Tax Rate For 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).
- 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.
|Rate imposed on an individual's income||Vary from 3% to 28% according to the monthly tax bracket.|
|from MXN 0 to 496||3%|
|from MXN 497 to 4,120||10%|
|from MXN 4,121 to 7,399||17%|
|from MXN 7,400 to 8,601||25%|
|8,602 and more||28%|
- Allowable Deductions and Tax Credit
- There are several types of deductions attributed to taxpayers in Mexico. You can find out the nature of all the deductions by contacting Mexican Federal Tax Administration.
- Special Expatriate Tax Regime
- If a foreigner resides in Mexico for business purposes for more than 183 days per year, he can obtain a special tax rate, however there are no special deductions for expatriates.
Double Taxation Treaties
- Countries With Whom a Double Taxation Treaty Have Been Signed
- See the list of financial agreements signed between Mexico and other countries
- Withholding Taxes
- Dividends: 0%, Interest: 4,9% / 30% / 40%, Royalties: 25% / 30%
- National Organizations
- Mexican Institute of Industrial Property
National Institute of Copyright (in Spanish)
- Regional Organizations
- World Intellectual Property Organization
- International Membership
- Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)
National Regulation and International Agreements
|Type of property and law||Validity||International Agreements Signed|
Industrial Property Law
|20 years|| Patent Cooperation Treaty (PCT) |
Strasbourg agreement Concerning the International Patent Classification
Industrial Property Law, Article 16
|10 years|| Trademark law treaty |
|75 years after the death of the author|
|75 years after the death of the author.|| Berne convention |
Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication of Their Phonograms
Rome ConventionFor the Protection of Performers, Producers of Phonograms and Broadcasting Organizations
WIPO Copyright Treaty
WIPO Performances and Phonograms Treaty
|Industrial Models |
Law of Industrial Property
- Independence of Justice
- The Judicial power is free and independent, however it is contaminated by the corruption.
- Equal Treatment of Nationals and Foreigners
- Yes, foreigners are entitled to impartial justice.
- The Language of Justice
- Recourse to an Interpreter
- Yes, as long as it is an official certified translator.
- Sources of the Law and Legal Similarities
- The Political Constitution of Mexico is the basis of the legal system in Mexico. The judicial system is a combination of constitutional theories and American civil rights in addition to judicial revisions of different legislative statutes. Mexico accepts compulsory jurisdiction from the International Court of Justice but with reservations.
- Checking National Laws Online
- Federal Legislation
- National Standards Organizations
- Standards General Direction
- Integration in the International Standards Network
- Mexico is a member of International Organization for Standardization, International Electrotechnical Commission, International Union of Telecommunication and Pan-American Commission for Technical Standards.
- Classification of Standards
- Official stamp "NOM" with the name of the ministry of state that issued it.
- Online Consultation of Standards
- Catalog of Official Mexican Standards (NOM's)
- Certification Organizations
- Association of Standards and Certification
Mexican Institute of Standard and Certification
Electronics Standards and Certification
Organization of National Standards and Certification for Building and Construction
- General Information
- Enterprises Center Mexico - European Union
- Opening Hours and Days
- Banks are open to the public from Monday to Friday from 9 AM to 4 PM.
Public administration offices are also open from Monday to Friday from 9 AM to 2 PM.
Businesses are open from Monday to Friday from 10 AM to 6 PM and Saturdays from 10 AM to 8 PM. It is not unusual to find businesses open on Sundays.
|New Year's||January 1st|
|Mexican Constitution's Day||First Monday in February|
|Benito Juarez's Anniversary||Third Monday in March|
|Good Thursday and Good Friday||It falls sometime between March 20 and April 25|
|Labor Day||May 1st|
|The Battle of Puebla's Day||May 5th|
|Mexican Independence's Day||September 16|
|Columbus Day||October 12|
|Day of the Dead||November 1st|
|Mexican Revolution's Day||Third Monday in November|
|Our Lady of Guadalupe's Day||December 12|
- Holiday Compensation
- Only the anniversaries of the Constitution, Benito Juarez and Mexican Revolution will be held on Monday if the date falls on weekend.
Periods When Companies Usually Close
|Christmas Vacations||One week from December 25 to December 31, depending on the enterprise.|
|Holy Week Vacations||The last week before Easter.|
|Summer Vacations||One week anytime in between July and August.|
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