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COUNTRY TRADING PROFILES
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Taxes - Accounting
Tax Rates |
Accounting Rules
Tax Rates
Corporate taxes
Tax rate
| Corporate tax |
30% |
| A flat tax (IETU) has been set up. It represents the minimum corporate tax after all deductions. |
17.5% |
- 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.
Individual taxes
Tax rate
| Rate imposed on an individual's income |
Vary from 1.92% to 30%. |
| from MXN 1 to 5,953 |
1.92% |
| from MXN 5,954 to 50,525 |
6.40% |
| from MXN 50,526 to 88,793 |
10.88% |
| from MXN 88,794 to 103,218 |
16% |
| from MXN 103,219 to 123,580 |
17.92% |
| from MXN 123,581 to 249,243 |
21.36% |
| from MXN 249,244 to 342,842 |
23.52% |
| Over MXN 342,843 |
30% |
- 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.
 We can indicate you which local taxes are applied to your product.
Accounting Rules
- 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
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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
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Impuestum
© Export Entreprises SA, all rights reserved.
Last updates: May 2012
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