Mexico » Taxes

Income Tax	VAT	Capital Gains Tax	Rental Income Tax

Income Tax

The income tax system seeks to tax corporate earnings only once, at the corporate level. However, a 35% tax is imposed on the corporation on distributions.

VAT

A value-added tax (VAT) at the general rate of 10% is payable on sales of goods and rendering of services, rents, and imports of goods and services.

Capital Gains Tax

Non-residents must pay either 25% of the gross amount of the transaction or the amount resulting from applying the highest marginal income tax rate in Mexico to the gain, whichever is lower.

Rental Income Tax

Rental income generated in Mexico is taxed at regular income tax rates, after deducting actual expenses or a blind deduction of 35%, whichever is greater.