Mexico Corporate Tax Guide 2026

Overview — Corporate ISR

Corporate income tax in Mexico (Impuesto Sobre la Renta — ISR) is a federal tax applied at a flat rate of 30% on the taxable profits of resident companies. Mexican tax residents are taxed on worldwide income, while non-resident companies are taxed only on Mexican-source income. The corporate tax rate has been stable at 30% since 2014 (reduced from 28% in 2010). Unlike personal ISR, there is no progressive structure for corporations — a single rate applies to all profit levels.

Companies are required to file monthly provisional returns (declaraciones provisionales) based on estimated profits, with an annual return due by 31 March of the following year.

Corporate Tax Rate — 30%

The standard corporate ISR rate is 30% on taxable income. This rate applies to all resident corporations, including limited liability companies (S. de R.L.), stock corporations (S.A. de C.V.), and other legal entities. There is no reduced rate for small companies under the general regime (though the RESICO regime offers a reduced rate for qualifying small businesses). The effective tax rate may be lower after considering deductions, tax credits, and inflation adjustments.

Profit Sharing — PTU (Participación de los Trabajadores en las Utilidades)

The PTU is a mandatory employee profit-sharing mechanism under Mexican labour law. Companies must distribute 10% of their pre-tax net profit to eligible employees. Key features:

• PTU is calculated on the company's pre-tax net profit (before deducting PTU itself)
• PTU paid is deductible for ISR purposes (as a statutory labour obligation)
• PTU is capped at 3 months of the employee's salary or 90 days of salary (whichever is less) per employee
• Eligible employees include all workers with at least 60 days of service in the fiscal year
• PTU must be paid within 60 days of the annual corporate tax return filing
• New companies are exempt from PTU for the first year of operations

The PTU regime was reformed in 2021 to cap the amount per employee, addressing concerns about excessive profit-sharing for high earners.

Maquiladora Special Regime (IMMEX)

Maquiladoras (IMMEX-certified companies) enjoy a special tax regime that allows them to temporarily import machinery, equipment, raw materials, and components duty-free, provided the finished goods are exported. For corporate ISR purposes, maquiladoras may compute taxable income under a safe harbour method:

• 6.9% of assets used in Mexico (maquila assets) as the deemed taxable income
• Alternative: apply arm's-length transfer pricing documentation to determine actual profit
• The safe harbour method simplifies compliance and provides tax certainty
• Income from maquila activities must represent at least 85% of total revenue

Maquiladoras also benefit from VAT and IEPS (excise tax) incentives, including a VAT certification (IVA e IEPS acreditable) that allows for accelerated crediting of input VAT.

CUFIN (Cuenta de Utilidad Fiscal Neta)

CUFIN is the net tax profit account that tracks the after-tax retained earnings of a Mexican corporation. It is a notional account that determines the tax treatment of dividends distributed to shareholders:

• CUFIN includes profits that have already been subject to corporate ISR at 30%
• Dividends paid out of CUFIN are not taxable to the Mexican-resident corporate shareholder
• However, when a company distributes dividends from CUFIN to individual shareholders or foreign shareholders, the company must withhold an additional 10% tax on the dividend amount
• CUFIN is maintained on a historical basis with annual updates and inflation adjustments
• Dividends paid in excess of CUFIN (from CUCA — capital account) are generally considered return of capital and not taxable

The CUFIN system ensures that corporate profits are taxed once at the corporate level, with the 10% dividend withholding representing the final tax layer for shareholders.

Other Corporate Taxes

In addition to ISR, Mexican corporations are subject to:

• IVA (VAT): 16% standard on sales, creditable on purchases (see VAT guide)
• Payroll tax (Impuesto Sobre Nóminas): State-level tax, 2–4% of gross payroll
• IEPS (Impuesto Especial sobre Producción y Servicios): Excise tax on specific products (alcohol, tobacco, fuel, and sugary drinks)
• ISR withholding: Companies must withhold ISR on employee salaries, professional fees, interest, dividends, and cross-border payments
• Annual flat tax on assets: Repealed (was known as IMPAC), no longer in effect

FAQs

What is the RESICO regime?

RESICO (Régimen Simplificado de Confianza) is a simplified tax regime for small businesses and professionals with annual revenue up to MXN 35 million. It offers reduced corporate ISR rates (1% to 25% depending on revenue bracket) and simplified compliance. Not available to publicly traded companies or those with foreign shareholders.

Are dividends taxable to the company?

No, the company does not pay tax on dividends received from another Mexican company, provided the distributing company has recognized the dividend as paid from CUFIN. Dividends from foreign sources are taxable.

How are foreign tax credits handled?

Mexican corporations may claim a foreign tax credit for income taxes paid abroad on foreign-source income. The credit is limited to the Mexican ISR attributable to that foreign income.

What are the transfer pricing requirements?

Related-party transactions must be at arm's length. Companies with revenue exceeding MXN 100 million or transactions exceeding MXN 3 million must file a transfer pricing return (declaración informativa de operaciones con partes relacionadas). Maquiladoras have specific APAs available.

Disclaimer

This guide provides general information about Mexican corporate income tax for the 2026 tax year. Tax laws and rates may change. The information is based on published SAT data and may not reflect individual circumstances. Always consult with a qualified Mexican tax advisor (contador) or the SAT directly for advice specific to your company's situation. InvestmentKit does not provide tax advice.