🇲🇽 Mexico · Tax System
Corporate tax, VAT/GST, personal income tax, capital gains, and filing obligations.
Quick answer
Mexico's taxes are administered by the SAT: income tax (ISR), VAT (IVA) and payroll-related taxes. Tax residents are taxed on worldwide income, and electronic invoicing (CFDI) is mandatory.
Mexico business tax is administered by SAT. Companies generally handle RFC/e.firma registration, corporate income tax (ISR), VAT (IVA), payroll withholding and electronic invoicing obligations.
- Legal entities file annual corporate returns by the deadline for their tax regime; SAT’s 2025 annual-return page lists 31 March 2026 for the general regime.
- VAT, income-tax withholding, payroll and CFDI electronic invoicing are operational requirements that should be configured before trading.
- Tax treatment varies by regime and activity; use SAT guidance and a licensed adviser for live filing positions.
Step-by-step
- 1
Determine your residency
You are generally a Mexican tax resident if your home or centre of vital interests is in Mexico; residents are taxed on worldwide income.
- 2
Get an RFC
Register with the tax administration (SAT) for an RFC and an e-signature (e.firma).
- 3
Understand the taxes that apply
Identify income tax (ISR, progressive), VAT (IVA) for businesses, and social-security contributions (IMSS).
- 4
Have ISR withheld
Employers withhold ISR and social-security contributions from salaries monthly.
- 5
File the annual declaration
File the annual income tax declaration (declaración anual) with the SAT — individuals generally by the end of April.
- 6
Pay, keep records and get advice
Pay or receive any balance, keep records, and get advice on foreign income and residency.
Checklist
- Residency determined (home / centre of vital interests)
- RFC + e.firma from SAT
- Applicable taxes identified (ISR, IVA, IMSS)
- Monthly ISR withholding
- Annual declaration (declaración anual) by ~end April
- Balance paid/received
- Records kept
- Advice on foreign income / residency
Official authorities
- SAT
Federal tax authority.
- SAT — Declaración Anual Empresas 2025
Official annual-return deadlines for companies.
Frequently asked questions
Am I a Mexican tax resident?
Generally if your main home or centre of vital interests is in Mexico; residents are taxed on worldwide income.
What is a CFDI?
The mandatory electronic invoice used for most transactions in Mexico, issued and validated through the SAT system.
What is the VAT rate?
IVA applies to most goods and services at a standard rate, with a lower rate in some border zones.
Official-information aggregation, not legal advice. Always verify on the authority's own site.