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Mexican Tax Law: Tax on Assets
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 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 |
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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.
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