Current Weather Conditions
16°C view
our full
forecast
Home >> Business >> Mexican Tax Law: Tax on Assets
Register Now Free
Send real estate referrals here

Latest Service Provider

SA Newsletter

Get the latest information about Mexico from the experts.
No account yet? Register

Business Directory Search

Mexican Tax Law: Tax on Assets

Print E-mail

Mexican Tax LawThere 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

 
< Prev   Next >

Other Articles

 

Mexican Tax Law: Third Party Taxes, Part I

Questions about taxes in Mexico? SolutionsAbroad.com has you covered. Browse our guide to taxes in Mexico.



 

Mexican Tax Law: Non-Residents

Non-Residents: this is your resource on Mexican taxation. This page covers personal property tax, capital gains tax and income tax.

 



 

Mexican Tax Law: US-Mexican Tax Treaty

The US-Mexico Tax Treaty reduces the taxation of investment income flowing between the two countries. The treaty includes provisions designed to prevent double taxation and to reduce each country's tax rates on various types of income earned by non-residents.



Mexican Tax Law: Canada-Mexico Tax Treaty

A bilateral income tax treaty has been in effect between Canada and Mexico since July 17, 1992. Like the U.S.-Mexico Tax Treaty, the Canada-Mexico Tax Treaty provides for avoidance of double taxation, reduction of income taxes applied to foreign residents, and the exchange of information between government authorities to avoid tax fraud.



 

SA Most
Popular Forums

SolutionsAbroad Mexico - General Discussion
(1 forums, 3 topics, 0 replies)
Retiring in Mexico
(5 forums, 7 topics, 5 replies)
Real estate experiences in Mexico
(5 forums, 4 topics, 3 replies)
Living in Mexico
(6 forums, 4 topics, 3 replies)
>More 

Top Blogs

  1. Casino world: 
  2. Casino world: 
  3. Interview with Michael Wein (long-time resident of San Miguel de Allende): 

     

    This interview was kindly provided by one o

>More 

Events

American Society Networke...

The American Society of Mexico invites you to their Decem

U.S. Thanksgiving Day

Come one, come all to the Traditional Thanksgiving Feast

Duran Duran in concert

New Romantics Duran Duran play their only date in the cap

>More 

Related Articles

Service Request

Upcoming Events

No Events Available

Recent Classified Ads