Individual - Significant developments

Last reviewed - 01 February 2024

During September 2020, an appeal court decision in Mexico City opened the possibility for foreign individuals leaving Mexico to seek a refund of part of their social security contributions that relate to pension and workers housing. The appeal court decision is a binding precedent only within the Mexico City area, although appeal courts in other jurisdictions within Mexico and the relevant authorities may follow the same criteria.

On 9 December 2020, a reform that regulates and promotes teleworking as a form of labour organisation was approved, establishing rights and obligations for employers and employees. This reform entered into force on 12 January 2021.

On 16 December 2020, a decree was published that amends, adds, and eliminates some tax provisions of the Social Security Law and Retirement Savings System Law. These apply from 1 January 2023.

Starting 1 June 2020, the income tax law establishes specific rules for collecting tax in relation to individuals who provide services via the digital economy as apps for transportation services, short-term rentals, and selling goods and services via digital marketplaces.

As of 2017, the Measurement and Actualisation Unit (UMA in Spanish) replaces the minimum wage in tax calculations, limits, exemptions, etc. as a unit of indexation. The UMA that corresponds to 2024 is 108.57 Mexican pesos (MXN) per day.