Income Tax (ISR) is one of the most significant and complex tax contributions for companies operating in Mexico. Understanding what it is SRI Companies MX, how it is calculated, what its rates are, and the associated obligations are essential not only for legal compliance, but also for proper financial planning and optimization of the tax burden. Whether you are starting a new business or managing an established company in Quintana Roo or anywhere else in the country, a solid understanding of the SRI Companies MX It is essential. This guide seeks to break down the key aspects of this tax for legal entities.
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What is the Income Tax (ISR) for Companies in Mexico?
Income Tax, commonly known as ISR, is a direct tax levied on the income or profits obtained by individuals and legal entities (companies). In the case of SRI Companies MX, this tax is applied to the taxable profit that companies generate during a fiscal year (usually a calendar year). Its main legal framework is found in the Income Tax Law (LISR) and is complemented by provisions of the Federal Tax Code (CFF) and the Miscellaneous Tax Resolution (RMF) published annually by the Tax Administration Service (SAT).
They are obliged to pay the SRI Companies MX Legal entities resident in Mexico with respect to all their income, regardless of the location of the source of wealth from which it comes, as well as residents abroad with a permanent establishment in the country for the income attributable to said establishment, and residents abroad for income from sources of wealth located in national territory, when they do not have a permanent establishment in the country, or when having one, said income is not attributable to it.
Key Elements for Calculating the SRI Companies MX (Fiscal Year 2025)
He calculate ISR companies in Mexico involves considering several fundamental elements:
Accumulable Income
These are all income in cash, goods, services, credit, or any other type of income obtained by companies during the fiscal year, including the annual adjustment for accrued inflation. Among the most common are income from the sale of goods or services, the granting of temporary use or enjoyment of goods, financial income, and gains from the sale of assets. Mexican Income Tax Law details which concepts are considered accruable income and the time of their accumulation.
Authorized Deductions
The authorized deductions for corporate income tax These are expenses that are strictly necessary for the purposes of a company's activity and that the Income Tax Law (LISR) allows to be subtracted from taxable income. To be deductible, they must meet various requirements, such as being covered by a Digital Tax Receipt (CFDI), being duly recorded in the accounting records, and having been effectively paid (in some cases). Some of the main deductions include:
- Cost of goods sold.
- Net expenses of discounts, bonuses or returns.
- Investments (through their annual depreciation or amortization).
- Accrued interest charged without any adjustment.
- Employer contributions paid to the IMSS.
- Bad debts and losses due to unforeseen events or force majeure.
Tax Result (Tax Profit or Loss)
Taxable income is obtained by subtracting authorized deductions and Employee Profit Sharing (PTU) paid in the same year from the total taxable income obtained in the fiscal year. If the result is positive, it is the basis on which the tax rate will be applied. SRI Companies MXIf the deductions and PTU paid are greater than the income, a tax loss is generated, which can be amortized against the taxable profits of subsequent fiscal years (for up to 10 years).
Corporate Income Tax Rate
The Income tax rate for companies in Mexico, specifically for legal entities under the general regime, has been 30% in recent years. It is essential to check the current rate for fiscal year 2025 in the LISR (Tax Income Tax Law), as tax laws may be subject to reform.
Calculation of the Tax for the Fiscal Year
The ISR for the fiscal year is calculated by applying the rate corresponding to the fiscal year's tax result. This is the tax that the company must pay in its annual tax return. It is a key component of the SRI Companies MX.
Provisional Payments of SRI Companies MX
Companies are required to carry out provisional payments of ISR for legal entities On a monthly basis, on account of the annual tax. These payments are calculated by applying the income tax rate to the result obtained by multiplying the profit coefficient (determined based on the previous fiscal year's taxable profit) by the nominal income for the period to which the payment corresponds. This result can be reduced by any outstanding tax losses from prior fiscal years and, where applicable, any PTU paid during the fiscal year (in the appropriate proportion). These payments are submitted to the SAT no later than the 17th of the month following the month to which the payment corresponds.
The Annual Declaration of SRI Companies MX
The annual corporate income tax return It is a fundamental obligation. Legal entities must file it no later than March 31 of the year following the fiscal year being declared. This declaration informs the SAT of the details of the accrued income, authorized deductions, fiscal results, provisional payments made during the year, and finally, determines the tax due or the balance in favor of the fiscal year. Correct calculation and filing of the annual declaration is essential for proper management of the tax system. SRI Companies MX.
Specific Tax Regimes for Legal Entities (Brief Mention)
Although the general regime of law for legal entities It is the most common for the SRI Companies MXThe LISR (Tax Income Tax Law) includes other regimes with specific characteristics, such as the Simplified Trust Regime (RESICO) for legal entities (with certain income limits and characteristics; verify its validity and conditions for 2025), the regime for the primary sector (AGAPES), and the regime for production cooperatives. Each has its own rules for calculating and paying the ISR.
Other Obligations Related to the SRI Companies MX
In addition to calculating and paying the tax, companies have other corporate ISR tax obligations, such as:
- Maintain electronic accounting and send it periodically to the SAT.
- Issue CFDI for all your income and expenditure transactions. (For this, it is vital to have your RFC Company MX).
- Submit informative declarations, such as the Informative Declaration of Operations with Third Parties (DIOT).
- Keep supporting documentation of your operations for the periods established by law.
- Comply with transfer pricing provisions if you carry out transactions with related parties residing abroad.
Tax Planning and Compliance: Avoiding Risks in the SRI Companies MX
Adequate tax planning, always within the framework of legality, is crucial to optimize the tax burden of the SRI Companies MXThis involves thoroughly understanding the applicable provisions, taking advantage of permitted tax deductions and incentives, and anticipating the fiscal impact of business decisions. Noncompliance, on the other hand, can lead to fines, surcharges, tax updates, audits by the SAT, and in serious cases, even criminal consequences. Correct identification of the Controlling Beneficiary It is also part of comprehensive compliance.
Specialized Tax Consulting: Your Guide in the World of SRI Companies MX
Mexican tax legislation, and in particular the Income Tax Law, is complex and subject to constant interpretation and change through the Miscellaneous Tax Resolution. Having a ISR tax consultancy in Mexico professional is essential. A corporate lawyer with tax experience or a certified public accountant can:
- Help you correctly interpret the provisions of the LISR applicable to your company.
- Design legal tax strategies to optimize the payment of SRI Companies MX.
- Ensure the correct determination and submission of provisional payments and the annual declaration.
- Assist in handling requests, certifications, or audits by the SAT.
- Keep the company up-to-date on tax reforms and their implications.
At City Laws, our team in Quintana Roo is prepared to provide you with the necessary advice on matters of SRI Companies MX.
He SRI Companies MX It is one of the main challenges that companies in Mexico must address. A clear understanding of its components, orderly accounting, timely compliance with obligations, and intelligent tax planning are essential for the financial health and legal sustainability of any business. The complexity of SRI Companies MX It requires constant attention and, frequently, the support of experts.
If your company requires advice to optimize its tax situation regarding the SRI Companies MX or to ensure compliance with all tax obligations, Contact City LawsWe're here to help you navigate the Mexican tax system with confidence and security.