Mexico

Overview

Last reviewed - 08 July 2020

Mexico, a constitutional 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, 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. Recent administrations have expanded competition in seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports, among others. Trade with the United States and Canada has nearly tripled since the implementation of the United States Mexico Canada Agreement (USMCA), in force as of 1 July 2020, formerly known as the North American Free Trade Agreement since 1994. 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. Strengthening the rule of law, facilitating cross-border trade, opening most 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 (TLS) practice 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 (%) (Div/Int/Roy)

Resident: 10* / 1.04** / 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
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.

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
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.

Gift tax rate (%)

Taxable to the recipient as ordinary income unless exempt (see the Mexico individual tax summary for more detail).

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.