[Mexico] Federal Tax - IVA (Value Added Tax) and State Tax - Employee Payroll Tax (ISN)

This is a brief explanation aimed at providing a quick overview of Mexico's business year and the often confusing tax system in Mexico, with the goal of being readable in about one minute. I hope it will be helpful for those considering entering the Mexican market or those who have already done so.
【Mexico】Federal Tax - IVA (Value Added Tax)
Value Added Tax is a federal tax that must be paid regardless of the state of residence. It is a tax applied to the sale of goods and the provision of services, equivalent to Japan's consumption tax. The standard rate for IVA is 16%. IVA is generally reported monthly.
【Mexico】State Tax - Employee Payroll Tax (ISN)
Payroll tax is a type of state tax that varies by the state where the business is located. A payroll tax of 2-4% is applied to the total amount paid to employees. The company withholds this tax from employees' salaries and reports it.
One of the challenging aspects of Mexico's tax system is that it is divided into federal and state taxes. Mastering this division is likely a key point for business development in Mexico. If you have any concerns regarding doing business in Mexico, please feel free to contact our company!

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This article provides a brief explanation of Mexico's fiscal year and the often confusing taxes in Mexico, aiming to be read in about 1 to 2 minutes. I hope it will be helpful for those considering expanding into Mexico as well as those who have already done so.