🇲🇽 Tax Overview — Mexico

Variable Capital Stock Corporation (SA de CV)

Mexico applies a flat 30% corporate income tax on worldwide income of resident companies. The 16% VAT (IVA) applies to most goods and services (reduced to 8% in the northern border zone). Employee profit sharing (PTU) requires distribution of 10% of taxable profit to employees annually, capped at 3 months of salary or the average of the last 3 years (whichever benefits the employee). Withholding tax on dividends to non-residents is 10%. Royalties to non-residents face 25–35% withholding depending on the treaty. The IEPS excise tax applies to specific sectors including alcohol, tobacco, fuel, and high-calorie foods.