Mexico's 2025 Economic Package Updates Tax Laws

Mexico's government has submitted the draft Federal Income Law for fiscal year 2025 to the House of Representatives, detailing significant updates to the nation's tax policies and regulations. The 2025 Economic Package reportedly introduces no new taxes, and existing tax rates remain unchanged. The government projects a GDP growth of 2-3%.

Under the updated regulations, no new taxes are being introduced. Additionally, tax incentives are available in specific circumstances, such as for fuel acquisition and the utilization of road infrastructure expenses. These include, for instance, special incentives for the Excise Tax on Production and Services (IEPS) related to the purchase and importation of diesel and its blends, applicable to agriculture and forestry, as well as public and private transportation.

Updates to the Federal Tax Code also encompass changes in surcharge rates for delayed payments. The monthly surcharge rate for outstanding balances remains at 98%, while installment plan rates vary between 1.26% and 1.82% per month depending on the repayment period. Furthermore, new deadlines have been established for the cancellation of electronic tax invoices (CFDI).

The 2025 tax package also features significant tax relief for businesses and individuals with lower incomes. Those earning less than 35 million pesos in annual income may qualify for a 100% tax incentive on certain charges, such as for tax infractions, non-payment fines, and enforcement expenses. Additionally, a special mining duty credit is available for mining companies whose annual gross income is below 50 million pesos.

Consulting firm Alvarez & Marsal has analyzed these changes, offering expert guidance for companies to ensure compliance with tax legislation. Beyond national tax laws, exemptions from customs processing fees are being implemented for the import of natural gas.