Worldwide Tax Guide 2015 – Key Tax Points - Tax - Mondaq Mexico - Mondaq Business Briefing - Books and Journals - VLEX 575924066

Worldwide Tax Guide 2015 – Key Tax Points

Author:Mr Mario Camposllera, Carolina Ramírez and Ricardo Martínez


Full name: United Mexican States

Population: 117.5 million (2013 PRB)

Capital: Mexico City

Area: 1.96 million sq km (758,449 sq miles)

Major language: Spanish

Major religion: Christianity

Monetary unit: 1 peso = 100 centavos

Internet domain: .mx

International dialling code: +52

SHCP website:


All income obtained by companies resident in Mexico is taxed, regardless of the source. Every state in Mexico requires specific contributions from its inhabitants, the largest being property tax. In some states employers are charged tax on wages paid to employees. Assets tax is charged on the value of a taxpayer's assets. The Treasury may alter the tax loss or profit where transactions between related parties are not made at market prices. Taxpayers are obliged to carry out an annual transfer pricing study. A controlled foreign companies' regime applies to transactions realised in specific countries or regions. Individuals will be subject to an additional fee of 10% on dividends or profits distributed by corporations resident in Mexico. Additionally, individuals who receive dividends from foreign companies shall be required to make payment of an additional 10% tax Resident individuals are taxed on their worldwide income. In the case of foreign income, taxes paid abroad are generally credited against taxes payable in Mexico. A. TAXES PAYABLE

Federal Taxes And Levies: Company Tax

Tax is calculated for each calendar year, comparing income obtained less allowable deductions. Currently, the corporate tax is 30% of taxable profits.

All income obtained by companies is taxed, regardless of the source, except in the case of branches of foreign companies. Branches are taxed based on income attributable to the branches.

Foreign companies, branches and persons established in Mexico which obtain income abroad are allowed to credit any foreign taxes paid against Mexican taxes payable by them up to the total local tax applicable in each case.

As of FY 2014, with the entry into force of the New Income Tax Law new rules are expected to establish the credit of income tax paid abroad, among which are the following:

In case of indirect interest, the crediting would proceed the entity must reside in a country with which Mexico has a broad information-sharing agreement. It is stated that limiting the crediting will be established by each country. In the case of dividends, new obligations are foreseen: The creditable...

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