On September 8, 2026, the Federal Executive submitted to the Mexican Congress the Economic Package for fiscal year 2027. Among other documents, such package comprises: (i) the bill of decree amending, adding to and repealing various provisions of the Income Tax Law, together with its transitional provisions; (ii) the bill of decree amending, adding to and repealing various provisions of the Federal Duties Law; (iii) the bill of decree amending, adding to and repealing various provisions of the Customs Law; (iv) the bill for the Federal Revenue Law for fiscal year 2027; and (v) the draft Federal Expenditure Budget for fiscal year 2027 (hereinafter, the "2027 Economic Package").
The proposed measures notably include various amendments to the Income Tax Law ("ITL") and to other tax provisions that could have a significant impact on taxpayers across different economic sectors.
It should be noted that the initiatives comprising the 2027 Economic Package must be discussed and approved by the Congress of the Union; accordingly, their content may be modified during the legislative process.
Below, we present a summary of the aspects that we consider most relevant of the 2027 Economic Package, as well as of the principal measures that, if approved, could give rise to tax implications for taxpayers.
New controls on authorized deductions
It is proposed that Chapter X, entitled "Control Mechanism for Authorized Deductions and Tax Losses", be added to Title II of the ITL, comprising Articles 78-A through 78-F. Under Article 78-A, the mechanism would apply to legal entities resident in Mexico that obtain taxable income exceeding MXN $50 million and determine taxable profit in the relevant fiscal year. Under Article 78-B, the regime would establish the cap on authorized deductions through a calculation mechanism based on the proportion that such deductions represent of taxable income. Where deductions do not exceed 96.67% of taxable income, the maximum deductible amount would equal total authorized deductions multiplied by a 0.9900 factor. Should that percentage be exceeded, the maximum deductible amount would equal taxable income multiplied by a 0.9667 factor.
Deductions not applied as a result of the cap could be taken in the following twenty fiscal years until exhausted, subject in each year to the same cap and restated in accordance with the procedure set forth in Article 78-B. The right to apply them would be personal and non-transferable, including as a result of a merger or spin-off; it would also be forfeited to the extent the taxpayer fails to apply it when able to do so. Among others, the following would be excluded from this regime: coordinated entities, taxpayers in the primary sector, parties carrying out maquila operations, insurance institutions and taxpayers registered with the Federal Taxpayers Registry ("RFC") for less than five fiscal years.
Cap on the carryforward of tax losses
Pursuant to Article 78-C, the offsetting of tax losses pending amortization would be limited to 50% of the taxable profit for the fiscal year, such taxable profit being the amount already adjusted by the limitation set forth in Article 78-B. Likewise, such restriction would be equally applicable estimated tax payments.
For taxpayers subject to the new control regime for deductions (Chapter X), the unamortized balance could be applied over the following twenty fiscal years pursuant to Article 57 of the ITL and subject to the same cap. Losses generated prior to the effective date of the decree could also be offset in the twenty fiscal years following the year in which they were incurred. The basis for determining employee profit sharing ("PTU") would be computed without regard to these limitations. Likewise, this mechanism would apply to legal entities resident in Mexico with taxable income exceeding MXN $50 million in the fiscal year, with coordinated entities, taxpayers in the primary sector, parties carrying out maquila operations, insurance institutions and taxpayers registered with the RFC for less than five fiscal years being excluded from the regime.
Restructurings and recently incorporated companies
The exclusion available to taxpayers registered with the RFC for less than five fiscal years would not apply where they receive, acquire or use from a pre-existing legal entity assets, inventories, rights, agreements, concessions, trademarks, client portfolios or any other asset essential to carrying out similar economic activities, and they have the same shareholders, partners or members, or where the latter maintain, directly or indirectly, control or management of the receiving company. The tax authorities could determine that the exception is inapplicable where incorporations, mergers, spin-offs, liquidations or corporate restructurings, sales of shares or equity interests, or any other corporate action are carried out for the purpose of qualifying for it.
By means of a transitional provision, companies that as from September 8, 2026, survive or result from a merger or spin-off would apply Chapter X as from January 1, 2027, unless they fall within the scenario contemplated in Article 78-E, section VII (the period would not restart as a result of the reorganization, but would instead be computed by reference to the standing of the merged or spun-off company with the longest existence).
Profit coefficient applicable in 2027
By means of transitory provisions, the profit coefficient for the 2027 estimated payments would be multiplied by a 1.0658 factor where the authorized deductions reported in the last annual tax return filed were equal to or less than 96.67% of taxable income, or by a 2.6162 factor where they exceeded that amount.
Reduction of the cap on the deduction of net interest
It is proposed that Article 28, section XXXII, first paragraph, of the ITL be amended so as to treat as non-deductible the net interest for the fiscal year exceeding the amount resulting from multiplying adjusted taxable profit by 20%, instead of the 30% currently in force.
Deduction conditioned upon remittance of the withholding
Payments to non-Mexican residents would be deductible solely in the fiscal year in which the consideration is paid, the corresponding withholding is remitted, and the taxpayer provides the information required under Article 76 of the ITL. he withholding would have to be remitted at the time the payment becomes due and payable, accrues, or is paid, whichever occurs first. Where the consideration is denominated in foreign currency, the conversion into Mexican pesos would be made at the time the withholding is carried out.
Timing of the deduction of advance payments
In the case of advance payments for the rendering of services and for the temporary use or enjoyment of property, the deduction would be available exclusively in the fiscal year in which the service is actually rendered or the contracted period elapses and, where the transaction spans more than one fiscal year, only for the portion actually received or granted. It is proposed that a final paragraph be added to Article 27, section XVIII, in order to exclude such advance payments from the general deduction rule, without prejudice to the obligation to hold the tax invoice for the advance payment in the fiscal year of payment a as well as the invoice covering the transaction in full.
Repeal of the optional regime for groups of companies and remittance of deferred income tax
The repeal in its entirety is proposed of Chapter VI of Title II of the ITL, comprising Articles 59 through 71, which governs the optional regime for groups of companies. Companies taxed under such regime would be required to deconsolidate as from January 1, 2027, and to remit the deferred income tax, duly adjusted for inflation, no later than December 31, 2027, including the amount corresponding to fiscal year 2026. The deferred tax of the third immediately preceding fiscal year would have to be paid no later than March 31, 2027.
Composition of the CUCA and the CUFIN
With respect to Article 22 of the ITL, in the case of capitalization of liabilities, accrued but unpaid interest and the corresponding value added tax ("VAT") would not form part of the verified acquisition cost of the shares. In-kind contributions consisting of accounts receivable, assignments of collection rights or credit instruments would be added to the tax basis only once they materialize and up to the amount actually collected in cash. Article 78, eleventh paragraph, would incorporate equivalent rules for the capital contribution account (“CUCA”) and would require capital increases to be supported by documentation in accordance with the Federal Tax Code ("FTC").
The amendment broadens the items that must be taken into account for purposes of determining net after-tax profit and, consequently, the composition of the net after-tax profit account (“CUFIN”), by including disbursements that are non-deductible as a result of the failure to satisfy tax or formal requirements, in addition to the non-deductible items already contemplated by the ITL, other than the items set forth in Article 28, sections VIII and IX, and PTU.
Tax incentives with transitional effect under the ITL (2027-2030)
The incentives relating to "Plan México," to the Economic Development Poles for Well-Being, to the Circular Economy Development Poles and to the Poles located in the Isthmus of Tehuantepec and Yucatán would be incorporated into the ITL, consisting, among others, of the immediate deduction of investments in fixed assets and of additional deductions for training and innovation. They would be in effect for fiscal years 2027 through 2030.
The application of such incentives would be conditioned upon the filing of progress reports on the investment project and upon compliance with minimum employment levels. In the case of the immediate deduction of investments, consequences are contemplated where title to the assets for which the deduction was applied is transferred through any legal structure. Likewise, the incentives would not be available, among other scenarios, to taxpayers whose digital seal certificates have been cancelled under Article 17-H of the FTC, to taxpayers that have been served with a resolution determining the issuance of false tax invoices under Article 49 Bis of the FTC, or to parties involved in criminal tax proceedings or convicted of tax offenses by final and binding judgment.
Simplified Trust Regime
Individuals: the income threshold for taxation under the Simplified Trust Regime ("RESICO") would increase from MXN $3,500,000.00 to MXN $5,000,000.00 per year; the monthly and annual tables set forth in Articles 113-E and 113-F would retain rates ranging from 1.00% to 2.50%, with the maximum rate applying to income of up to MXN $5 million. Upon exceeding that amount at any time during the fiscal year, payments already made would be treated as final and taxation would shift to the general regime as from the following month, with the authority being able to assign the corresponding regime without a request from the taxpayer. Taxpayers would be allowed to return to the regime as from the following fiscal year where income for the immediately preceding fiscal year does not exceed MXN $5 million and the taxpayer is current in its obligations. In the primary sector, the amount of exempt income would increase from MXN $900,000.00 to MXN $1,000,000.00.
Legal entities: the income threshold would increase from MXN $35,000,000.00 to MXN $50,000,000.00 and the regime would become optional for legal entities resident in Mexico composed exclusively of individuals. Re-entry in subsequent fiscal years would be permitted, and the maximum investment deduction percentages would increase in practically all categories, including, among others, 49% for buildings, 85% for computer equipment and 100% for electric bicycles and motorcycles.
10% rate on initial public offerings
For fiscal year 2027, an incentive is contemplated that would allow the gain on the sale of shares derived from an initial public offering of Mexican companies with a market value not exceeding MXN $50 billion to be taxed at a 10% rate. The benefit would cover up to 25% of the paid-in shares sold, would require effective placement among the investing public and could not entail a transfer of control of the issuer. Where the market value of the issuer exceeds MXN $50 billion, the incentive would apply only to the portion of the gain resulting from dividing such amount by the total market value as of the date of the initial public offering.
Repatriation of funds held abroad
Individuals and legal entities resident in Mexico, as well as non-Mexican residents with a permanent establishment in Mexico, could repatriate funds of lawful origin held abroad through September 8, 2026, by paying a 7.5% rate with no deductions. The repatriation would have to be completed no later than December 31, 2027 and the funds would have to remain invested in Mexico for at least three years in specified uses, such as "Plan México" projects, fixed assets, land, research and development, government bonds and the payment of liabilities owed to the Federal Government. The benefit would be available even to taxpayers subject to the exercise of audit powers, provided the terms for filing legal remedies have not lapsed.
Settlement of final tax assessments
The incentive available to taxpayers whose total income for fiscal year 2025 does not exceed MXN $300 million would be modified, consisting of a 100% reduction of fines, surcharges and enforcement costs in respect of final tax assessments for 2025 and prior fiscal years, through a single payment made no later than December 31, 2027. The application would have to be filed no later than October 31, 2027. The exclusion of taxpayers that benefited from prior programs would be eliminated and the grounds for exclusion based on criminal complaints would be expanded.
IEPS Incentive
It is established that the Special Tax on Production and Services ("IEPS") will not be applicable to the sale of gasoline and diesel carried out during the period from July 1 to December 31, 2027, in the case of persons other than manufacturers, producers and importers of automotive fuels and fossil fuels, as a measure to support the purchasing power of the population and to contain inflationary pressures arising from fuel prices.
Digital Platforms
The amendments regarding income tax and VAT withholding introduced to the digital platforms’ regime under the 2026 Federal Revenue Law—which intermediaries must apply to individuals and legal entities for the sale of goods and the rendering of services through such platforms—would be extended to fiscal year 2027.
Other relief measures
Surcharge rates
Article 11 of the Federal Revenue Law proposes the following rates:
Relevant transitional provisions
The initiative amending the Customs Law is aimed at combating the undervaluation of imported goods and comprises, among other aspects, the following:
The bills comprising the 2027 Economic Package are subject to the legislative process and may be modified during their discussion and approval by the Mexican Congress. Under the approved legislative calendar, the relevant dates are the following:
We will closely monitor the legislative process and will timely inform you of any relevant modification, as well as of the effects that the approved provisions may have on your operations and corporate structures.
If you have any questions or comments, please feel free to contact our team of experts at the following email address: fiscal@macf.com.mx
Legal Notice: This Client Alert is for informational purposes only and does not constitute legal advice or a formal opinion on any specific matter. The information contained herein reflects a general analysis prepared by our attorneys based on information available at the time of publication. Any reproduction, citation, or reference to this content must be expressly attributed to Mijares and should not be construed as a public statement or comment made by the firm to the media.
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