Corporate Income Tax in Mexico

Source-cited draft. Built from the Cámara de Diputados consolidated text of the Ley del Impuesto Sobre la Renta (LISR, last reform DOF 01-04-2024) and SAT pages, read on 2026-10-28. No accountant has reviewed it. Do not file from it without review by a qualified Mexican professional.

Tax year: the calendar year. Currency: Mexican peso (MXN). The Servicio de Administración Tributaria (SAT) administers ISR.

See also: mx-cross-border (Title V non-resident income), mx-social-contributions (IMSS, INFONAVIT, PTU), mexico-transfer-pricing.

Who this applies to

Resident Mexican corporations (personas morales) are taxed on all their income regardless of where the source of wealth is located (LISR Art. 1 fr. I: "Las residentes en México, respecto de todos sus ingresos, cualquiera que sea la ubicación de la fuente de riqueza de donde procedan"); Art. 8 imposes the Title III obligation on those residents and Art. 9 sets the 30% rate. A Mexican-source rule and a permanent-establishment concept bring non-resident corporations in under Title V: see mx-cross-border. Mexican branches of foreign companies are taxed as resident corporations; a foreign corporation without a PE pays the Title V flat rates instead.

Rates, bands and thresholds

Item	Rate	Tax year	Source
Corporate ISR on the annual fiscal result	30%	2026	LISR Art. 9
Corporate-level tax on dividends not paid out of CUFIN	30% on the dividend grossed up by the factor 1.4286	2026	LISR Art. 10
Additional tax on dividends paid to resident individuals	10%	2026	LISR Art. 140
Non-resident flat rates (no PE)	25% on rent, real-property gains and services	2026	LISR Arts. 156, 158, 160; see mx-cross-border
Dividends paid to non-residents	10% withheld by the paying company	2026	LISR Art. 164 fr. I

No general reduced corporate rate exists in the consolidated LISR text read on 2026-10-28.

The taxable base

Fiscal result (LISR Art. 9): accumulate all Title II income, subtract authorised deductions (Arts. 25-37) and PTU actually paid in the year (Art. 9 fr. I), then subtract updated prior-year loss carryforwards.

Losses carry forward 10 years ("los diez ejercicios siguientes", LISR Art. 57), inflation-updated. Same-line-of-business limits apply on mergers (fusión) and on a change of controlling shareholders (Art. 58); Art. 57 itself limits losses in spin-offs (escisión).

Timing. Accrual basis; inflation adjustment applies to certain items (Arts. 44-46). Deductions require CFDI invoice compliance (Art. 27).

Dividends. The Art. 10 tax does not apply when the dividend comes out of the Cuenta de Utilidad Fiscal Neta (CUFIN). Otherwise the paying company grosses the dividend up by the factor 1.4286 and pays 30% (Art. 10). Capital reductions are recharacterised through the CUFIN waterfall (Art. 78).

Deadlines and filing

Obligation	Deadline	Source
Monthly provisional ISR payments	By the 17th of the following month, on the prior year's utilidad/ingresos coefficient	LISR Art. 14; SAT, declaraciones mensuales
Annual ISR return	Within three months of year end ("dentro de los tres meses siguientes a la fecha en que termine dicho ejercicio")	LISR Art. 76 fr. V
Related-party operations informative return	By 15 May of the following year	LISR Art. 76 fr. X
Transfer-pricing informative returns (Art. 76-A)	Fractions I and III (master and country-by-country): by 31 December of the following year; fraction II (local): by 15 May of the following year	LISR Art. 76-A, final paragraphs

Penalties and interest

CFF Art. 64 (the old 45%-85% fine for underpaid amounts) is repealed ("Artículo 64.- (Se deroga).") in the consolidated CFF read 2026-10-31. Underpaid contributions discovered by the tax authorities now draw a fine of 55% to 75% of the omitted contributions (CFF Art. 76); declaring a fiscal loss larger than the real one draws 30% to 40% of the difference (Art. 76, later paragraphs). Omitted contributions plus accessories are due within 30 days of the assessment notice (Art. 65), which also governs inflation updating. Recargos (CFF Art. 22) are an annual variable-rate charge on fiscal credits, not a fixed 1.41% monthly figure. IMSS contribution penalties are covered in mx-social-contributions.

Cross-border points

• Payments to non-residents without a PE trigger Title V withholding: rent and real-property gains 25% flat (LISR Arts. 158, 160), services 25% flat (Art. 156). They are usually grossed up because the Mexican payer owes the tax as retentor. See mx-cross-border.
• Treaty relief requires the beneficiary to prove residence.
• Transfer pricing runs through Arts. 76 fr. XII, 179-182 and the master/local informative returns (Art. 76-A). See mexico-transfer-pricing.

Worked examples

Worked example 1: corporate tax with a loss carryforward

A Mexican S.A. de C.V. has MXN 12,000,000 acumulable income, MXN 8,500,000 authorised deductions, pays PTU of MXN 400,000, and has an updated loss carryforward of MXN 2,000,000 from two years ago. Utilidad fiscal is MXN 3,100,000; after the loss the resultado fiscal is MXN 1,100,000, and ISR at 30% is MXN 330,000.

name: corporate tax with loss carryforward
inputs:
  ingresos: 12000000
  deducciones: 8500000
  ptu_pagada: 400000
  perdida_cf: 2000000
  tasa: 0.3
steps:
  - utilidad_fiscal: ingresos - deducciones - ptu_pagada
  - resultado_fiscal: utilidad_fiscal - perdida_cf
  - impuesto: resultado_fiscal * tasa
expected:
  utilidad_fiscal: 3100000.00
  resultado_fiscal: 1100000.00
  impuesto: 330000.00

Worked example 2: dividend not paid out of CUFIN

The same company distributes a MXN 700,000 dividend out of post-2014 profits. The Art. 10 tax is 700,000 × 1.4286 × 30% = MXN 300,006 (the statute itself prescribes the gross-up: "éstos se deberán multiplicar por el factor de 1.4286 y al resultado se le aplicará la tasa del artículo 9 de esta Ley"). The 10% additional tax on the resident individual (Art. 140, second paragraph: "una tasa adicional del 10% sobre los dividendos o utilidades distribuidos", retained by the company and definitive) applies to the dividend distributed, not to the dividend plus the Art. 10 tax: 700,000 × 10% = MXN 70,000.

name: dividend gross-up and 10 percent additional tax
inputs:
  dividendo: 700000
  factor: 1.4286
  tasa: 0.3
  adicional: 0.1
steps:
  - impuesto_dividendo: dividendo * factor * tasa
  - impuesto_adicional: dividendo * adicional
expected:
  impuesto_dividendo: 300006.00
  impuesto_adicional: 70000.00

Ask the client first

1. Is the CUFIN balance enough for planned distributions? A dividend outside CUFIN bears the Art. 10 tax.
2. Any control change or merger that limits the loss carryforward (Art. 58)?
3. Is every deduction backed by a CFDI (Art. 27)?
4. Was PTU paid in the year? Only PTU paid reduces the base.
5. Any payments to non-residents that need Title V withholding before the payment date?

Sources

Source	URL	Read on
Ley del Impuesto Sobre la Renta, consolidated (Cámara de Diputados, last reform DOF 01-04-2024), Arts. 8-10, 14, 25-37, 44-46, 57, 76, 76-A, 78, 140, 156, 158, 160, 164, 179-182 (still last reformed DOF 01-04-2024 in the October 2026 copy)	https://www.diputados.gob.mx/LeyesBiblio/pdf/LISR.pdf	2026-10-29
SAT, personas morales régimen general: declaraciones mensuales	http://omawww.sat.gob.mx/informacion_fiscal/obligaciones_fiscales/personas_morales/regimen_general/Paginas/declaraciones_mensuales.aspx	2026-10-28
Código Fiscal de la Federación, consolidated (Cámara de Diputados, last reform DOF 09-04-2026), Arts. 22, 64, 65, 75, 76	https://www.diputados.gob.mx/LeyesBiblio/pdf/CFF.pdf	2026-10-31

Not yet confirmed: how the 10% additional dividend tax (Art. 140, second paragraph) applies to non-resident shareholders; whether CUFIN is limited to profits taxed before 2014 as earlier drafts said, and the CUFIN-non-resident account; whether a 2025-2026 reform changed the Art. 9 rate after the DOF 01-04-2024 consolidation (the 2025-2026 rate-increase debate had not changed the text read; the consolidated copy read on 2026-10-29 still shows 30%); the annual return as a calendar date (the LISR text gives three months after year end; earlier drafts said 30 July for calendar-year taxpayers); the PTU payment deadline of 60 days after the annual return (Ley Federal del Trabajo; not read); treaty-by-treaty withholding rates; the 2026 minimum wage; current SAT tariff tables. The consolidated LISR read contains no 35% rate anywhere in Title V (the 25% rates in Arts. 156, 158, 160 and the interest tiers in Art. 166 are the flat rates), so the "35% Title V rate" earlier drafts listed is not carried.