Americas · Tax guide

Mexico

Mexico taxes company profits at 30% and requires companies to share 10% of taxable profit with employees. VAT is 16%, every invoice must be a digitally stamped CFDI, and payments abroad carry substantial withholding. Small individuals can use the simplified RESICO regime. Taxes are administered by the Tax Administration Service (SAT).

Updated 1 October 2026 · 0 of 8 figures checked against official sources

Check your obligations

At a glance

Corporate income tax (ISR)
30%

Plus mandatory profit sharing

Employee profit sharing (PTU)
10%

Of taxable profit

VAT (IVA)
16%

Lower rate in the border regions

RESICO for individuals
1% to 2.5% of income

Income up to MX$3,500,000

Withholding on royalties and services
25%

Before treaty relief

Country-by-country reporting
€750 million

Group revenue

Income tax (ISR) and profit sharing

Companies pay ISR at 30%, with monthly provisional payments by the 17th and an annual return by 31 March. Employees must also receive 10% of taxable profit as profit sharing (PTU), paid each May.

Individuals in business pay progressive rates, or can choose the simplified trust regime (RESICO) with income up to MX$3,500,000, paying 1% to 2.5% of income of income.

VAT and CFDI e-invoicing

Every business registers with the SAT (RFC) and charges VAT at 16%, with a reduced rate in the northern and southern border regions and zero-rating for exports, most food and medicines. VAT is filed monthly with the related-party report (DIOT).

Every invoice must be a CFDI 4.0, digitally stamped by an authorised provider and reported to the SAT in real time — including payment receipts, payroll slips and, for transported goods, the Carta Porte supplement.

Payments abroad

Royalties, technical assistance and services paid abroad carry 25% withholding before treaty relief, and dividends paid to non-residents carry an additional 10%. Treaties reduce these when the recipient proves residence.

Transfer pricing

Related-party transactions must be at arm's length, with annual documentation and an informative return; larger taxpayers file local and master files, and groups with revenue of €750 million or more file country-by-country reports. Mexico has not yet adopted the global minimum tax rules.

Key dates

  • By the 17th of each monthISR provisional payment, VAT and withholdings
  • 31 MarchAnnual ISR return for companies
  • MayEmployee profit sharing (PTU) paid

Figures and sources

8 figures
  • Corporate income tax (ISR) rate30%
    Ley del ISR · Art. 9
    Under professional review
  • Employee profit sharing (PTU)10%
    Ley Federal del Trabajo · Art. 117
    Under professional review
  • VAT (IVA) rate (8% in the northern and southern border regions)16%
    Ley del IVA · Art. 1
    Under professional review
  • RESICO tax rates for individuals1% to 2.5% of income
    Ley del ISR · Art. 113-E
    Under professional review
  • Annual income limit for individuals in the simplified regime (RESICO)MX$3,500,000
    Ley del ISR · Art. 113-E
    Under professional review
  • Withholding on royalties, technical assistance and services paid abroad (before treaty relief)25%
    Ley del ISR · Arts. 156, 167
    Under professional review
  • Group revenue for country-by-country reporting€750 million
    Ley del ISR, Art. 76-A
    Under professional review
  • Additional withholding on dividends paid to non-residents10%
    Ley del ISR · Art. 164
    Under professional review

Indicative only. This assessment is a high-level overview of tax obligations in Mexico based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a Mexican public accountant (contador público) or tax lawyer before making compliance decisions.