The difficult aspects of the Mexican tax system! Mastering the tax system is key to expanding your business in Mexico!

◆Tax Obligors
According to Article 31 of the Constitution of the United Mexican States, all Mexican citizens are obligated to pay taxes.
*Article 31 of the Constitution of the United Mexican States... Duties of Mexican citizens... IV. To contribute to public expenditures of the Federation, states, Mexico City, and the municipalities in which they reside, in a proportional and equitable manner as established by law.
◆Broadly Divided into Three Categories
In Mexico, taxes applicable to taxpayers are mainly classified into the following three categories:
1. Federal Taxes (Impuestos Federales)
2. State Taxes (Impuestos Estatales)
3. Municipal Taxes (Impuestos Municipales)
Taxes such as income tax (ISR) and payroll tax (ISN) fall under one of these three major classifications.
The tax collection agency is called SAT (Servicio de Administración Tributaria), which is the tax administration service provider responsible for ensuring the application of tax laws and that individuals and businesses pay taxes to contribute to the public expenditures of the state. Additionally, at the local level, it is generally managed by organizations commonly referred to as FINANZAS.

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The difficult aspect of Mexico's tax system is that it is divided into federal taxes, state taxes, and municipal taxes. Mastering these tax systems effectively seems to be a key point for business development in Mexico.