loader image
Blog

Main Taxes in Mexico

Main Tax in Mexico

Publicación: Jul 21, 2022

Mexico has a complex tax system, in this article will be explained an overview of the main taxes in Mexico.

Income Tax 

The Income Tax or Impuesto Sobre la Renta (ISR, acronym in Spanish), is the 30% of the corporation profit. This tax is paid annually, but estimated advance payments need to be done in monthly bases. The tax profit is calculated as follow:

Taxable Revenue ( – ) tax deductions = tax profit

Value Added Tax   (VAT)

The Value Added Tax is an indirect tax that is apply in the consumption of goods or services. The standard rate is 16% but some activities can be tax in 0% rate or are exempt of VAT. There is also a geographic zone in The north and south of the country with a 8% rate.

The payable VAT is determined as follow:

Out VAT (VAT Collected in sales) – Input VAT (Vat paid in purchases and expenses) = Payable VAT

Special TAX 

The Special Tax on Productions and Services, known in Mexico as IEPS taxes different products such as: alcoholic beverage, high sugar content products, tobacco, and others. The tax rate of this tax is from 3% o 160% depending on the service or product. Special reports must be presented depending on the activity.

Social Security

All the employees in Mexico needs to be register in the social security and contributions must be paid. Social security grants health services, retirement funds and other services to the employee. The contributions are calculated ion base of the salary, and the rate can be approximately from 22% to 30%.

Payroll State Tax 

This is a state contribution calculated in base of the total revenue of the employee, the rate is around the 2% to 3% depending on the State the employee is register.

If you want more information regarding the main taxes in Mexico, please contact us.

Post Relacionados

Reducción de multas fiscales del SAT

El SAT informó vía twitter de una facilidad administrativa para la reducción de multas fiscales, la cual aplica para todos aquellos contribuyentes que tienen multas fiscales por incumplimiento de declaraciones pendientes en año anteriores a 2022 y la cual estará...

Tax Beneffits NearShoring Mexico – Invest Mexico

Mexican Government increases tax rates for depreciation in new investments, to increase nearshoring investment in Mexico. Nearshoring tax benefits in Mexico The trend of Nearshoring in our country has led the government at all three levels to encourage and, in some...

India and Mexico legal and tax comparison

As investment from India into Mexico continues to grow annually, I have crafted this article to provide a comparative analysis of the tax and legal terminologies commonly encountered when establishing a company in Mexico. You will learn more about terms between mexico...

  • No hay productos en el carrito.