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Mexico
Overview
Last reviewed - 18 January 2024Mexico, a constitutional federal republic in North America, is bordered by the United States to the north, the Pacific Ocean to the south and west, the Gulf of Mexico to the east, and Guatemala and Belize to the southeast. It is divided into 32 federal entities (states), with Mexico City as the capital. The currency is the Mexican peso (MXN), and the official language is Spanish. English is also understood by many members of the business community in the capital and larger cities, as well as in the tourist resorts and areas bordering the United States.
Mexico has a free market economy in the trillion United States dollar (USD) class. It consists of highly diversified and modern industries, with significant amounts of private investment. Trade with the United States and Canada has nearly tripled since the implementation of the North American Free Trade Agreement (NAFTA) in 1994, renegotiated in 2018 and 2019 (ratified by the Mexican Senate) and renamed as the United States-Mexico-Canada Agreement (USMCA). Mexico has free trade agreements with over 50 countries, including the European Union (EU), Japan, and many other countries around the world, placing more than 90% of trade under free trade agreements. Mexico has been on a reform path for a number of years, privatising, deregulating, and cutting back the role of government. Facilitating cross-border trade, opening sectors to private investment, and enhancing intellectual property rights protection are good examples of the measures taken by Mexico to support its economic growth and development.
PwC Mexico, with more than a century of accumulated experience, is the leading professional services organisation in Mexico and provides a full range of business advisory services. The Tax and Legal Services teams of our Trust Solutions group develops and implements customised solutions based on the needs of both domestic and international clients.
Quick rates and dates
| Corporate income tax (CIT) rates | |
|---|---|
| Headline CIT rate (%) |
30 |
| Corporate income tax (CIT) due dates | |
|---|---|
| CIT return due date |
31 March |
| CIT final payment due date |
31 March |
| CIT estimated payment due dates |
Estimated payments of CIT are due by the 17th day of each month. |
| Personal income tax (PIT) rates | |
|---|---|
| Headline PIT rate (%) |
Residents: Graduated progressive rates up to 35%. Non-residents: Varies depending on type of income. For salaries, progressive rates up to 30%. |
| Personal income tax (PIT) due dates | |
|---|---|
| PIT return due date |
30 April |
| PIT final payment due date |
30 April |
| PIT estimated payment due dates |
The payment is due by the 17th day of the following month in which the income is received. |
| Value-added tax (VAT) rates | |
|---|---|
| Standard VAT rate (%) |
16 |
| Withholding tax (WHT) rates | |
|---|---|
| WHT rates (%) (Dividends/Interest/Royalties) |
Resident: 10* / 0.08** / NA; Non-resident: 10 / 4.9 to 35 / 5 to 35 * WHT on dividend paid to an individual. ** WHT on interest paid by financial institutions. Applicable on the invested capital. |
| Capital gains tax (CGT) rates | |
|---|---|
| Headline corporate capital gains tax rate (%) |
30% for a Mexican resident, accrued as regular taxable income. 25% on the gross proceeds, or 35% on the net gain, for non-residents. |
| Headline individual capital gains tax rate (%) |
See the Mexico individual tax summary for capital gain rates. |
| Net wealth/worth tax rates | |
|---|---|
| Headline net wealth/worth tax rate (%) |
NA |
| Inheritance and gift tax rates | |
|---|---|
| Headline inheritance tax rate (%) |
Inheritances are treated as income under the income tax law and must be reported, but are generally tax exempt for tax residents. |
| Headline gift tax rate (%) |
Taxable to the recipient as ordinary income unless exempt (see the Mexico individual tax summary for more detail). |
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