Mexico: Tax & Auditing Requirements

Corporate Tax in Mexico (Sourced and quoted from here)

  • Federal corporate income (CIT) tax
    • The CIT applies to Mexican resident taxpayers’ income from worldwide sources as well as to foreign residents on the the income attributed to their permanent establishments (PEs) located in Mexico
    • All corporate entities, including associations of a civil nature, branches, etc., are subject to the tax rules applicable to Mexican corporations (unless specifically ruled out such as not-for-profit organizations)
    • The CIT is 30%
    • Taxpayers engaged exclusively in certain fields, such as agriculture, livestock, fishing and forestry, are granted a 30% reduction of their tax liability
    • Once a corporation has paid its CIT, after-tax earnings (earnings arising from the after-tax earnings account, Cuenta de Utilidad Fiscal Neta or CUFIN) may be distributed to the shareholders with no tax charge at the corporate level
    • A withholding tax (WHT) on dividend payments to individuals or foreign residents (including foreign corporations) applies at the rate of 10% (this WHT does not apply to distributions of profits subject to corporate-level tax prior to 2014)
  • Local income tax
    • There are no state taxes on corporate net income
    • For more information, the Income Tax Law can be found (here)

Auditing in Mexico (source)

  • Accounting Standards
    • In Mexico the accounting standards are set by regulatory bodies such as the Mexican Council for Research and Development of Financial Information Standards
    • Mexican companies are required to prepare financial statements in Spanish according to the Mexican Financial Information Standards
    • Accounting registries and books of account must be recorded in Spanish
  • Accounting Regulatory Bodies
    • Mexican Council for Research and Development of Financial Information Standards
  • Accounting Reports
    • There are two main structures:
      • The Balance Sheet: this reflects the financial situation of the enterprise and provides information about the assets liabilities and capital on a particular date (last day of the fiscal year)
      • Profit and Loss Report: reflects the income, expenses, loss and profit obtained during that particular period (usually each trimester of fiscal year)
  • Publication Requirements
    • The balance sheet, the profit and and loss account statements and the daily ledger are mandatory components of the publication
    • All accounts are published annually
    • Corporations with gross income exceeding MXN 100 million, assets exceeding MXN 79 million or with at least 300 employees may file with the tax authorities a special report (dictamen fiscal) prepared by an independent public accountant. If the report is filed, the tax authorities will not audit on general principles, but instead review to verify that the audit was properly carried out
  • Professional Accountancy Bodies
    • Mexican Institute of Public Accountants
    • Mexican College of Public Accountants
  • Certification and Auditing
    • Companies must seek a statutory auditor to conduct an annual audit of the financial health of the organization


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