I. TAXATION OF CORPORATIONS
A. Introduction
This chapter summarizes the most relevant aspects of taxation of
corporate taxpayers in Mexico, but does not discuss the taxation of the
permanent establishments of nonresidents.
B. Corporate Taxpayers
Under Mexican income tax laws, commercial companies, government
agencies performing business activities, credit institutions, and civil
companies, and associations are deemed corporate taxpayers.
C. Tax Rate
Corporations are subject to income tax at a flat rate of 28% applied on
the amount of taxable income (gross income minus allowable deductions).
D. Accruable Income
Corporations must report all income derived from any source, whether
received in cash, in kind, in services, in credit (i.e., when accrued) or of any
other kind, including inflationary gain (which is the income generated by a
taxpayer as a result of the reduction of its liabilities in real terms as a result
of inflation).
The above universe of income includes the following types of income
expressly listed under the law:
Presumptive income, income from payments in kind, income through
accession, capital gains, income from mergers or spin-offs (except where
certain requirements are met), capital redemptions or liquidation of foreign
entities, recapture of deductions taken, indemnities, expenses incurred on
behalf of third parties (unless properly supported with documents issued in
the third party’s name), interest, inflationary gains and income from tax
havens.
