Section Index
- Our Accounting & Taxes Partners
- Accounting & Taxes Services
- Main Services
- Challenges Accounting & Taxes
- International Tax Agreements
- Corporate Taxes
- Tax Rates on Products
- FAQ Accounting & Taxes
Service providers
- Our Accounting & Taxes Partners
- Accounting & Taxes Services
- Main Services
- Challenges Accounting & Taxes
- International Tax Agreements
- Corporate Taxes
- Tax Rates on Products
- FAQ Accounting & Taxes
Over 50% of companies audited in Mexico face penalties due to errors in tax filings or non-compliance with accounting regulations, highlighting the critical need for precise financial management and local expertise.
Mexecution Accounting & Taxes Partners
Our Accounting and Tax Experts manage the preparation of audited financial statements and records, ensuring compliance with federal obligations. They also handle bookkeeping tasks while staying informed on legal tax requirements to provide comprehensive advice and optimize your tax strategy.
Click on a profile to learn more about each Accounting & Tax company
Main Industries: Tech Development, Manufacturing, Services
Main Industries: Commerce, Manufacturing, Construction
Main Industries: Automotive, Machines & Tools, Plastics
Main Industries: Production, Insurance, Construction
Main Industries: Technology Providers, E-Commerce, Professional Services
Main Industries: Manufacturing, Trading, Information Technology
Main Industries: Financial Services, Commerce, Manufacturing
Main Industries: Manufacturing, Finance and Services
Corporate Services offered by our Accounting & Tax Partners
Partial List of the Services
- Bookkeeping
- Payroll Management
- Consulting and Financial Guidance
- Financial Statement Reports
- Audits
- Tax Administrations & Compliance
- Fiscal Compliance Management
Main Services in Accounting & Taxes
Here are some core services offered by our Accounting & Tax Partners.
Payroll
Offering comprehensive payroll management services, ensuring compliance with labor laws, tax regulations, and social security requirements to help companie avoid penalties.
- Employee Classification
- Salary Structure (Base Salary, Overtime, Bonuses, etc.)
- Tax Withholding
- Social Security and Employer Contributions
- Payroll Processing and Reporting
Audits
Conducting audits to ensure accurate and reliable financial information.
- Financial Statements audit
- Tax compliance examination
- Examination and reviews for special purposes
- Social security compliance assessment
- For tax and financial purposes
- For Social Security and Infonavit
Taxes
Ensuring compliance with the Mexican Tax Administration Services (SAT) regulations and handling tax calculations and filings under current laws.
- Providing tailored tax solutions
- Consulting and training of tax laws and miscellaneous regulations
- Annual projections of tax results and management of tax refunds
- Advice of the latest tax reforms and obligations
- Defense before various tax authorities
Challenges of Accounting & Taxes in Mexico
Managing accounting and taxes in Mexico is challenging for manufacturers due to the dynamic regulatory environment, frequent tax law changes, and the need to navigate both federal and state compliance requirements.
Tax Fillings
Businesses face a range of tax obligations with strict deadlines to avoid penalties and audits.
- Monthly Tax Filings: Companies must file taxes on a monthly basis, including VAT (IVA), income tax (ISR), and payroll taxes.
- CFDI Invoices: Businesses must issue digital invoices (CFDI) for every transaction to ensure tax compliance.
- Income Tax (ISR): Companies must calculate and withhold income tax on employee salaries and business income, based on a progressive scale.
- Payroll Tax: Employers must withhold and remit income tax from employee salaries, as well as contribute to social security (IMSS), housing (INFONAVIT), and retirement savings (SAR).
Electronic Invoicing
Companies are required to issue and validate electronic invoices (CFDI) for tax purposes, with the system undergoing regular updates.
- Mandatory Requirement: All businesses must use CFDI for tax reporting and compliance.
- SAT Integration: Invoices must be validated and transmitted to the SAT for real-time verification.
- Digital Signatures: Each invoice requires a digital signature (FIEL or e.firma) for authenticity and security.
- Penalties for Non-Compliance: Failure to issue or submit CFDI invoices properly can result in fines and penalties.
Audit Risks
Audit risks in Mexico, related to tax and financial compliance, can lead to penalties, reputational damage, and legal issues.
- Tax Authority Scrutiny (SAT Audits): Frequent audits by the SAT for discrepancies in tax filings, leading to potential penalties.
- Inaccurate or Incomplete Tax Filings: Errors or missed deadlines in tax filings can trigger audits and penalties.
- Transfer Pricing Discrepancies: Failure to comply with transfer pricing regulations for cross-border transactions increases audit risks.
Tax Changes
The evolving Mexican tax landscape, with frequent reforms and anti-tax evasion measures, presents significant compliance challenges for companies.
- Frequent Amendments: Mexican tax laws are updated regularly, requiring businesses to stay informed and adjust their compliance practices.
- Anti-Tax Evasion Measures: Recent reforms focus on tightening control over tax evasion, imposing stricter reporting requirements and penalties.
Our partners ensure that businesses remain compliant with Mexico's complex tax and financial regulations while minimizing the risks of audits and penalties.
International Tax Agreements
Mexico has successfully concluded double-taxation agreements (DTAs) with a total of 63 countries, aiming to eliminate the possibility of individuals and businesses being taxed twice on the same income.
What Cooperate Taxes I have to pay in Mexico
There are different taxes has specific regulations, rates, and reporting requirements that businesses and individuals must follow to ensure compliance.
Payroll tax rates in Mexico can vary significantly from state to state, with rates typically ranging between 1% and 3%, depending on local regulations and the specific payroll tax structure in each region.
The Income Tax (Impuesto sobre la Renta – ISR) is levied on the income received by a taxpayer in cash, kind, credit or services. Companies are subject to a flat ISR rate of 30%.
10% of a company's taxable profit must be distributed to employees each year in the form of a profit-sharing plan. Excluded from this are executives, board members, domestic workers, and temporary workers.
If an employee is classified as a non-resident for Mexican tax purposes, the tax rate can vary between 15% and 35%, depending on factors such as the type of income and the specific tax regulations in place at the time.
Tax Rates on Goods in Mexico
Among others, the following goods are subject to a 0% tax rate:
- Animal feed
- Agricultural vehicles and equipment
- Fertilizers
- Books, newspapers, and magazines
Exports of goods or Machineres which are imported to process Products fall under the IMMEX Program and are also exempt from value-added tax (VAT).
VAT is charged at the standard rate of 16% on the sale of goods and services, as well as on lease payments and the importation of goods and services.
The excise tax law (IEPS) imposes federal taxes on the import and sale of specific goods like gasoline (variable), beer (26.5%), wine (26.5%-53%), spirits (53%), and tobacco products (160% plus additional fees), as well as related services such as distribution and gambling (30%).
FAQ Accounting & Taxes
Some of the most asked questions regarding Accounting & Taxes.
Yes, it is advisable to hire a local accountant or tax advisor who understands Mexican tax laws. An accountant will help ensure compliance with tax regulations, manage payroll, file returns, and avoid penalties.
- Obtain an RFC from the SAT.
- Choose the appropriate tax regime (e.g., General Regime for Legal Entities, Simplified Regime).
- Set up an accounting system and file monthly and annual tax returns.
The Simplified Regime (Régimen de Incorporación Fiscal, or RIF) is designed for small businesses with annual revenues of up to MXN 2 million. It offers lower tax rates and simplified reporting requirements, making it a good option for startups.
Yes, there are several incentives available to new businesses in Mexico, especially those operating in specific industries, such as technology, manufacturing, and renewable energy. Some incentives include:
- Tax credits for investment in technology and R&D.
- Exemptions or reductions in local taxes for businesses in certain regions.
Yes, shelter service providers generally manage tax filings, payroll, and compliance with local tax laws. However, it is still important to work with a dedicated accountant to ensure that you meet all financial and tax obligations.
Why Choose Mexecution?
Transparency & Honesty
Transparency and honesty are the cornerstones of our business, as we firmly believe in fostering trust and open communication with our clients and partners.
Reliability & Punctuality
Our service providers deliver reliable, timely services while prioritizing client satisfaction and fostering trust to build long-lasting, successful partnerships.
Trust
Trust is the foundation of our and our Service Providers' relationships, built on open communication, integrity, and exceptional service delivery.
Quality & Standards
Our Service Providers are committed to excellence through meticulous detail, continuous improvement, and strict quality control in all operations.
Industry Sectors
15+
C-Level Contacts
80+
Clients
500+
Years of experience
20+
