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In this page: Accounting Rules | Tax Rates | Intellectual Property | Legal Framework | Standards | Business Practices


Accounting Rules

Tax Year
The fiscal year begins on January 1st and ends on December 31st of the same year.
Accounting Standards
The Accounting system used in Mexico is modern and international.  It follows the same double ledger pattern, which is compatible with most of the European accounting systems. Mexican GAAP with increasing conformity to international standards.
Accounting Regulation Bodies
Mexican Council of Investigation and Development of Financial Information Standards
Accounting Reports
There are two essential structures:

- The balance sheet, which reflects the situation of the enterprise and provides the information about the assets, liabilities and capital on a particular date (the last day of the fiscal year).

- The profit and losses report, which shows the results of all financial activities of the enterprise in a given period of time, could be each trimester or each year.  It reflects the income, expenses, loss and profit obtained during that particular period.

Publication Requirements
The balance sheet, the profit and loss account statements and the daily ledger are mandatory. Accounts are published annually.
Professional Accountancy Bodies
Mexican Institute of Public Accountants
School of Public Accountants of Mexico
Certification and Auditing
Companies have to seek a statutory auditor to conduct an annual audit of the financial health of their organization. You can contact an external auditor: Deloitte (en espagnol) , Price Waterhouse Coopers.
Accounting News
franquicias de despachos contables | Franquicias en México

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Tax Rates

Consumption Taxes

Nature of the Tax
VAT (Value Added Tax) called "Impuesto al Valor Agregado - IVA"
Tax Rate
16% -  Value Added Tax Laws
Reduced Tax Rate
11% for the activities of enterprises located in a frontier zone. Exports are subject to a rate of 0%, as well as basic foodstuffs, agricultural services related to the production of them and medicines.
Other Consumption Taxes
Special Production and Services Tax Law (applied to alcoholic beverages, elaborated tobacco, gasoline and diesel). Laws for New Automobiles.

Learn more about Service Providers in Mexico on, the Directory for International Trade Service Providers.

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Corporate Taxes

Company Tax
Tax Rate For Foreign Companies
All legal entities that according to the Federal Tax Code  are considered Mexican residents are taxed for worldwide income received, depending of their activity or social object, in any of the following regimes:

- Legal entities of general regimen
- Legal entities non-profit
- Legal entities of simplified regimen

Legal entities that are not residents, must pay taxes in Mexico when they earn an income from a source of wealth located in Mexican territory (income tax and flat rate corporate tax).

Capital Gains Taxation
A flat tax (IETU) has been set up. It represents the minimum corporate tax on capital gains. The rate is 17%.
Main Allowable Deductions and Tax Credits
The expenses for establishing a business can be deductible if they are backed up properly, some of them can be: real estate acquisition expenses, VAT, contributions to third parties, etc.  For more information, consult the site of Mexican Federal Tax Administration
Other Corporate Taxes
For information on the other taxes levied on companies in Mexico, access Mexconnect.
Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Country Comparison For Corporate Taxation

  Mexico Latin America & Caribbean United States Germany
Number of Payments of Taxes per Year 6.0 30.0 11.0 9.0
Time Taken For Administrative Formalities (Hours) 337.0 367.0 175.0 207.0
Total Share of Taxes (% of Profit) 52.5 47.2 46.7 46.8

Source: Doing Business - Last Available Data.

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Individual Taxes

Tax Rate

Rate imposed on an individual's income Vary from 1.92% to 30%.
from MXN 1 to 5,953 1.92%
from MXN 5,954 to 50,525 6.40%
from MXN 50,526 to 88,793 10.88%
from MXN 88,794 to 103,218 16%
from MXN 103,219 to 123,580 17.92%
from MXN 123,581 to 249,243 21.36%
from MXN 249,244 to 342,842 23.52%
Over MXN 342,843 30%
Allowable Deductions and Tax Credits
There are several types of deductions attributed to taxpayers in Mexico. You can find out the nature of all the deductions by contacting Mexican Federal Tax Administration.
Special Expatriate Tax Regime
If a foreigner resides in Mexico for business purposes for more than 183 days per year, he can obtain a special tax rate, however there are no special deductions for expatriates.

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
See the list of financial agreements signed between Mexico and other countries
Withholding Taxes
Dividends: 10%, Interest: 4,9% / 30% / 40%, Royalties: 25% / 30%

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Sources of Fiscal Information

Tax Authorities
Mexican Federal Tax Administration
Other Domestic Resources
Ministry of Finances and Public Credit

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Learn more about Taxes and Accounting in Mexico on, the Directory for International Trade Service Providers.

Intellectual Property

National Organizations
Mexican Institute of Industrial Property (in Spanish)Secretaría de Educación Pública National Institute of Copyright(in Spanish)
Federal Copyright
Regional Organizations
World Intellectual Property Organization
International Membership
Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)

National Regulation and International Agreements

Type of property and law Validity International Agreements Signed
Industrial Property Law
20 years Patent Cooperation Treaty (PCT)
Industrial Property Law, Article 16
10 years Trademark Law Treaty
Copyright Law
75 years after the death of the author  
Copyright Law
75 years after the death of the author. Berne convention For the Protection of Literary and Artistic Works
Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication of Their Phonograms
Rome ConventionFor the Protection of Performers, Producers of Phonograms and Broadcasting Organizations
WIPO Copyright Treaty
WIPO Performances and Phonograms Treaty
Industrial Models
Law of Industrial Property
20 years  

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Legal Framework

Independence of Justice
The Judicial power is free and independent, however it is contaminated by the corruption.
Equal Treatment of Nationals and Foreigners
Yes, foreigners are entitled to impartial justice.
The Language of Justice
Recourse to an Interpreter
Yes, as long as it is an official certified translator.
Sources of the Law and Legal Similarities
The Political Constitution of Mexico is the basis of the legal system in Mexico.  The judicial system is a combination of constitutional theories and American civil rights in addition to judicial revisions of different legislative statutes. Mexico accepts compulsory jurisdiction from the International Court of Justice but with reservations.
Checking National Laws Online
Federal Legislation

Learn more about Lawyers and Legal in Mexico on, the Directory for International Trade Service Providers.

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National Standards Organizations
Standards General Direction (in Spanish)
Integration in the International Standards Network
Mexico is a member of International Organization for Standardization, International Electrotechnical Commission, International Union of Telecommunication and Pan-American Commission for Technical Standards.
Classification of Standards
Official stamp "NOM" with the name of the ministry of state that issued it.
Online Consultation of Standards
Catalog of Official Mexican Standards (NOM's)
Certification Organizations
Association of Standards and Certification
Mexican Institute of Standard and Certification
Electronics Standards and Certification
Organization of National Standards and Certification for Building and Construction

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Business Practices

General Information
Mex Connect
Opening Hours and Days
Banks are open to the public from Monday to Friday from 9 AM to 4 PM.
Public administration offices are also open from Monday to Friday from 9 AM to 2 PM.
Businesses are open from Monday to Friday from 10 AM to 6 PM and Saturdays from 10 AM to 8 PM.  It is not unusual to find businesses open on Sundays.

Public Holidays

New Year's January 1st
Mexican Constitution's Day First Monday in February
Benito Juarez's Anniversary Third Monday in March
Good Thursday and Good Friday It falls sometime between March 20 and April 25
Labor Day May 1st
The Battle of Puebla's Day May 5th
Mexican Independence's Day September 16
Columbus Day October 12
Day of the Dead November 1st
Mexican Revolution's Day Third Monday in November
Our Lady of Guadalupe's Day December 12
Christmas December 25
Holiday Compensation
Only the anniversaries of the Constitution, Benito Juarez and Mexican Revolution will be held on Monday if the date falls on weekend.

Periods When Companies Usually Close

Christmas Vacations One week from December 25 to December 31, depending on the enterprise.
Holy Week Vacations The last week before Easter.
Summer Vacations One week anytime in between July and August.

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Last Updates: October 2014