Accounting In Mexico And Tax Compliance Requirements (Video)

Each country has its own tax and accounting requirements. Understanding accounting in Mexico will be an advantage when doing business. Below is a summary of the different legal requirements for doing business in Mexico.

1. Accounting and Taxation – Corporate Income Taxes in Mexico

Corporations are subject to different tax rates than other business models, families, or individuals are. They are listed by per cent here:

• Corporate Income Tax- 30%
• Capital gains considered as corporate income- 30%
• Value Added Tax- 16%

Withholding taxes are as follows:

• Dividends paid to residents and non-residents- 10%
• 5% royalties from railway rentals
• 25% royalties for technical assistance