Mexican Tax Law: Tax on Assets

There is also a federal tax on corporate assets, established at a 1.8% rate. This tax will be applied on certain current assets and on fixed assets of Mexican companies and foreigner's assets within Mexico to be transformed and returned out of Mexico (e.g. Maquila). This tax will be paid on an annual basis through monthly provisional payments.

If in any fiscal year the income tax paid by a company exceeds the tax on assets paid by such company, the taxpayer may request a refund equivalent to the amount of tax on assets paid for that fiscal year and for the previous 10 (ten) fiscal years in which the tax on assets had been paid and the taxpayer had not requested a refund.

Likewise, if in any fiscal year the tax on assets paid exceeds the income tax paid, the taxpayer may credit against the tax on assets the income tax paid.

Additionally, the tax on assets is not due during the pre-operational period, the first three years of operation, or during the liquidation of the company unless this liquidation lasts for more than two years.

There is an option whereby the local manufacturing company can assume the tax liability of the foreigner on the assets to be transformed and as a consequence the liability on the foreigner is avoided. Through this option the local manufacturing company can credit this tax against its own corporate income tax.

Return to top