This overview provides clear, factual guidance on the corporate tax regime in Mexico, tailored for companies seeking to understand national requirements and obligations in 2025. It highlights the standard corporate tax rate, base assessment, and withholding tax structure based on official figures.
Corporate Tax Structure in Mexico (2025)
For the 2025 fiscal year, Mexico applies a flat-rate corporate income tax, assessed on company profits. There are no sliding brackets or tiered systems for corporate entities; all taxable profits are subject to the same fixed rate.
| Assessment Basis | Tax Rate (%) | Currency (MXN) |
|---|---|---|
| Corporate Profits | 30% | MX$ |
The 30% corporate income tax is applicable to most resident companies in Mexico. The taxable base is generally defined as profits generated from business operations within the country.
Withholding Tax on Dividend Distributions
Mexico imposes a specific withholding tax when companies pay out dividends. This surtax applies in the following circumstances:
| Description | Surtax Rate (%) | Currency (MXN) |
|---|---|---|
| Withholding tax on dividends paid to individuals or foreign residents (including foreign corporations) | 10% | MX$ |
If a Mexican company distributes dividends to either an individual resident or to a foreign shareholder (including foreign corporate shareholders), a 10% withholding tax is levied on the distributed amount. Note that this withholding is separate from (and applies in addition to) the corporation’s main 30% income tax liability.
Compliance and Filing Requirements
There is no information available regarding holding periods for shares or deferred dividend payout structures affecting the corporate income tax or withholding tax regime. Companies should monitor any annual updates from local authorities, as corporate tax regulations can occasionally be subject to amendment.
Summary Table: Key Corporate Tax Data for Mexico (2025)
| Parameter | Value | Currency/Unit |
|---|---|---|
| Corporate Tax Rate | 30% | MX$ (MXN) |
| Tax Rate Structure | Flat | – |
| Assessment Basis | Corporate profits | – |
| Withholding Tax on Dividends to Individuals/Foreign Residents | 10% | MX$ (MXN) |
Currency and USD Equivalency
All official tax liabilities are assessed in Mexican pesos (MX$). For clarity, as of early 2025, the exchange rate is approximately MX$17 = US$1 (based on prevailing market rates). For example, a profit of MX$1,000,000 (≈ US$58,823) would incur a corporate tax of MX$300,000 (≈ US$17,647).
Pro Tips: Navigating Mexico’s Corporate Taxes
- Plan for the Full Tax Burden: When calculating total tax costs on distributed profits, factor both the 30% corporate tax and the 10% dividend withholding tax to avoid surprises at fiscal year-end.
- Structure Cross-Border Dividends Carefully: If your business has foreign shareholders, ensure that dividend planning accounts for the 10% withholding rate, as it applies to all dividends paid abroad regardless of shareholding structure.
- Monitor for Policy Updates: Although the flat rate is consistent, stay updated via official Mexican government channels for any changes to withholding, assessment bases, or potential credits.
- Consult for Treaty Benefits: Double-check if international tax treaties may provide relief or credits against Mexican withholding tax for foreign recipients, even though this information is not provided here.
Official Resources
- Ministry of Finance and Public Credit (Gobierno de México)
- Servicio de Administración Tributaria (SAT)
In summary, Mexico’s corporate tax regime for 2025 is direct and easily quantifiable: a 30% flat tax on corporate profits and an additional 10% withholding on dividend payouts to individuals and foreign shareholders. While dividend and holding period specifics are not officially disclosed, keeping current with official updates and planning cross-border profit distributions with both rates in mind is prudent for international businesses operating or investing in Mexico.