On September 8, 2025, the President of Mexico sent to the House of Representatives her amendment proposals for fiscal year 2026 (the "Bill"), which include: (I) Federal Revenue Law ("FRL"), (II) Federal Fiscal Code ("FFC"), (III) Excise Tax Law ("ETL") and (IV) Federal Duties Law ("FDL"). It should be noted that, as further discussed, the FRL contains amendments to the Income Tax Law ("ITL") and the Value Added Tax Law ("VATL").
The Bill includes an increase in excise taxes on manufactured tobacco, flavored beverages with added sweeteners, gambling games and raffles and the establishment of a tax on video games with violent, extreme or adult content, as well as various modifications made to the FFC to strengthen the audit powers of the tax authorities.
The following are the main proposed changes:
The FRL Bill for 2026 includes the following topics:
Surcharge rate for tax assessments
The rates in cases of unpaid tax assessments are modified as follows:
a. Up to 12 months: the rate is increased from 1.26% to 1.42% per month.
b. From more than 12 to 24 months: the rate increases from 1.53% to 1.63% per month.
c. More than 24 months or deferred payment: the rate increases from 1.82% to 1.97% per month.
Tax incentives
It is proposed to maintain the following tax incentives:
In turn, the Bill proposes to exempt the payment of the Customs Processing Fee ("CPF") for the import of natural gas.
It is also indicated that the head of the Federal Executive may grant the tax benefits necessary to duly comply with the rulings derived from the enforcement of international mechanisms for settling legal disputes that determine a violation of an international treaty.
The Tax Administration Service ("TAS") may issue general provisions for the application of tax incentives and exemptions.
Financial system withholding rate
Income Tax and Value Added Tax
For Income Tax and value added tax ("VAT"), the Bill proposes the following:
MXN $25 million per taxpayer or investment project, for national film production projects
MXN $3 million per contributor or investment project, for investment projects in the distribution of national films
The tax incentives for high-performance sports (article 203 of the ITL), previously interrupted for fiscal year 2025 is reintroduced for 2026.
Withholding of 50% of the VAT due by legal entities selling goods, rendering services or granting the temporary use or enjoyment of goods in terms of subsection a) of section II of article 18-J of the VAT Law.
Withholding of 100% of the VAT due in case of (i) the sale of goods by foreign residents without a permanent establishment in Mexico and (ii) payments deposited in foreign bank accounts.
Remittance of withheld amounts issuance of invoices for withholdings and payments made and submission of client information.
In addition, debt and equity investment funds carrying out securities lending transactions shall exclude from the calculation of the income tax withholding, the agreed additional premium.
Tax regularization program for individuals and legal entities
Repatriation of capital
The tax incentive established in this transitional provision shall not be applicable to taxpayers subject to taxes pursuant to Title IV, Chapter II, Section IV (RESICO) of the ITL; individuals who have been subject to a criminal case or linked to a criminal proceeding in the tax field or convicted of committing a tax crime by a final judgment; those listed in the lists referred to in Articles 69-B, fourth paragraph, and 69-B Bis, ninth paragraph of the FFC (pressured to have issued invoices for inexistent transactions); or fall within the scenario established in Article 69-B, eighth paragraph of the FFC (unlawful transfer of losses), unless the latter correct their tax situation.
Tax Exemption for Organizers of the 2026 FIFA World Cup
The Head of the Federal Executive Branch has proposed several modifications to the FFC, among which the following stand out:
Dealing with false tax invoices
One of the main goals of the Bill is to address simulated transactions documented with tax invoices.
To achieve this objective, different measures are proposed, emphasizing the following:
1. Establishing as a requirement that tax invoices must document existing, true or real legal acts. If this requirement is not met, the tax invoices will be considered false.
Establishing a new audit power allowing the tax authorities to conduct targeted audits with shortened deadlines to verify that tax invoices reflect genuine transactions. This new audit process will be completed within 24 days according to the following:
It should be noted that this proposal, as opposed to what happens with the current publication of taxpayers presumed to have entered into non-existent transactions under article 69-B of the FFC, does not provide for the possibility that taxpayers who gave effect to tax invoices issued by a listed taxpayer may prove the reality of the transactions documented by such tax invoices before the temporary restriction of their digital stamps occurs. Apparently, it would seem that taxpayers could try to refute the reasons that gave rise to the restriction in the clarification process that would follow, once the digital stamps have been temporarily restricted.
2. Article 113 Bis of the FFC is modified again to establish that a penalty of two to nine years in prison will be imposed on anyone who, by themselves or through an intermediary, issues, sells, buys, acquires, or gives tax effects to false tax invoices. This offense will be prosecuted regardless of the status of any ongoing administrative procedures. One of the objectives of this modification is to align the FFC with the recent reform of the Political Constitution of the United Mexican States, which states that informal preventive detention will be applied to any activity related to false tax invoices.
New cases of temporary restriction or cancellation of the digital seal certificate for invoicing
The Bill proposes adding new cases for the temporary restriction of the digital tax stamps certificate, which may lead to a cancellation of such certificates in the following cases:
Power of the authorities to request notary publics to validate the authenticity of documents
The Bill proposes that the TAS has the power to establish in general rules the procedure to require notaries public to state, under oath of telling the truth, if the documents presented by taxpayers in the procedures they request are authentic.
Removal of taxpayers from the taxpayer’s registry and assumptions used to deny registration in that registry
In order to remove inactive taxpayers from the taxpayer registry (“RFC”), it is proposed that the tax authority may suspend activities or cancel the registration when it detects that, after a period of inactivity of three years in the case of suspension of activities and five years for cancellation in the RFC, taxpayers (i) have not filed returns, (ii) are not included in the returns filed by third parties as the Informative Return of Transactions with Third Parties, (iii) have not issued or received tax receipts, (iv) have not submitted notices to the RFC, and (v) do not have pending tax requirements or tax assessments.
Likewise, the possibility of denying the registration in the RFC of legal entities is foreseen, in the event that their legal representatives, partners or shareholders or any person who is part of their organic structure is in any of the following cases:
Also, the registration in the RFC may be denied in those cases in which the legal representatives, partners or shareholders or any person who is part of the organic structure of the person seeking registration, are part of a legal entity that is in any of the aforementioned cases.
Maximum period to cancel digital invoices online
It is proposed to establish that invoices may be canceled no later than the month in which the annual income tax return corresponding to the fiscal year in which they were issued must be filed, provided that the person in favor of whom they were issued accepts the cancellation. It should be noted that this provision is already provided for in the Miscellaneous Tax Regulation in force.
Real-time review of digital platforms
The Bill establishes a new obligation for digital service providers (residents and non-residents who render services in national territory concerning the download or access to videos, music, games, intermediation between third parties, among others), to allow tax authorities, on a permanent basis, online and real-time access to the information in their systems or records related to the operations of digital services they provide, in the terms established by the TAS through general rules.
As a penalty for non-compliance with the aforementioned obligation, the temporary blocking of access to the digital service through the concessionaires of the public telecommunications network in Mexico is foreseen. It should be noted that this sanction is already provided for in the VAT Law for certain infringing behaviors of the platforms.
Administrative review
The Bill specifies that the administrative review will only proceed with respect to tax assessments.
In the explanatory memorandum, it seems that the original intention of the legislator was to establish that the administrative review would be an extraordinary and informal process for the tax authority to review its own acts, only in cases in which a tax assessment has been determined. This approach was not deemed suitable for other types of rulings.
Use of technological tools in tax audits and verification of goods in transport
It is proposed to empower the tax authorities to use technological tools to generate photographs, audios or videos in tax audits and in the verification of goods in transport.
Reporting Facts and Omissions to Audited Taxpayers
The Bill establishes that the tax authority must inform taxpayers, their legal representative and, in the case of legal entities, their board of directors, of the facts or omissions detected during an audit, within 10 business days after the issuance of the last partial official letter, the notification of the official letter or the provisional ruling. Currently, the official letter containing the audit results is issued prior to the notification of the aforementioned documents.
This modification seeks to make the meeting held with the tax authorities more efficient and productive, since taxpayers will already know the aforementioned facts or omissions by then.
In addition, it is proposed to establish the obligation of legal entities to provide, at the beginning of the audit, the contact details of the board of directors, the sole administrator and/or the person who has that character in their board. If such information is not provided, it will be understood that the taxpayer does not have the desire to exercise the right to know in the offices of the authorities the facts or omissions known during the audit.
Statements issued by financial institutions other than banks
The Bill proposes to amend the FFC so that in cases in which reference is made to bank account statements, the mention of account statements is also included, in order to reflect that taxpayers can have accounts in other types of entities such as Fintechs and not only in banks.
In line with the above, it is proposed that, for the presumptive determination of contributions for deposits in account statements, those observed in bank statements and in account statements in general shall be considered.
Information that may be requested in an audit
The Bill proposes to establish that, in audits, tax authorities may require reports, data, documents, accounting records or part thereof, economic and financial information, with the order, methodology and characteristics that allow matching the taxpayer's operations and movements in their bank accounts.
In practice, it is common for tax authorities to request "special information", i.e. working papers with specific columns or custom-made documents for their audits. Courts have considered these requirements illegal because such integrations are not part of taxpayers' accounting records.
In this context, the proposed amendment grants the tax authority the power to request reports and documents with a specific methodology and order, that is, it grants the authority to require what has been known as "special information".
Dealing with the illicit hydrocarbon market
Within the framework of combat against the illicit hydrocarbon market, the Bill proposes as an additional requirement for tax invoices, that those issued by taxpayers who distribute or dispose of hydrocarbons or petroleum products, contain the current permit number granted by the National Energy Commission. In case of non-compliance with this obligation, the Bill provides that the digital stamp to issue tax invoices may be temporarily restricted.
Likewise, it is provided that in cases in which the tax authority requires the submission of volumetric controls reports and the taxpayer does not comply with said requirement or complies after the deadline, a fine of between $18,360.00 and $36,740.00 shall be imposed.
Elimination of the obligation of Registered Public Accountants to give notice of crimes
It is proposed to eliminate the obligation by means of which registered public accountants are required to inform the tax authority of conducts that may constitute tax crimes, leaving only the obligation to inform the tax authorities when they become aware that a taxpayer has failed to comply with tax or customs provisions.
It should be noted that the explanatory memorandum establishes that the general obligation prevails for accountants - and for any person - to report to the Public Prosecutor's Office facts that could constitute a crime.
Installment payment in customs matters
It is proposed to allow the payment of customs tax assessment in installments, both during the review process and at the time of tax assessment issuance. This measure seeks to facilitate the tax regularization of taxpayers subject to foreign trade reviews, allowing them to make deferred payments or in installments when their liquidity does not allow payment in a single installment. It includes companies in bankruptcy, expanding the regularization options for taxpayers in restructuring.
Offence of stating false facts or presenting false documents
The Bill provides for a penalty of three to six years in prison for anyone who knowingly declares false facts or data or files false or altered documentation in any procedure provided for in the FFC. It is further provided that the offence shall be investigated and prosecuted regardless of the status of the proceedings that may have been initiated.
Presumption of smuggling and its equivalent
The Bill proposes to expand the assumptions by means of which the crime of smuggling is presumed, incorporating new behaviors related to non-existent or simulated transactions in foreign trade. These modifications establish penalties of five to eight years in prison to combat evasion strategies that use preferential schemes and special regimes fraudulently.
Specific cases include the abuse of benefits by maquiladoras and companies with export programs, improper handling of goods under temporary importation, unjustified shortages in authorized premises, and false certification of origin to secure preferential tariff treatment.
Likewise, the Bill proposes to equate to the crime of smuggling the conduct of marketing, alienating, acquiring or having in possession packs of cigarettes and other manufactured tobacco (except handmade cigars) that do not have the security code, or whose code is apocryphal or altered.
Inadmissibility of an administrative appeal against unknown acts
The Bill proposes to establish as a new cause for inadmissibility of the administrative appeal that the taxpayer claims to be unaware of the act being appealed.
The explanatory memorandum states that it has been identified that taxpayers, increasingly, rebut the acts, arguing that they do not know them, in order to force the authority to make them known in the administrative appeal, with the aim of making arguments against the notification procedure and the administrative ruling itself. In these cases, if the Bill is approved, the taxpayer will only have the nullity trial available.
Guarantee of tax interest
Obligation to guarantee tax interest by means of a deposit note up to the maximum amount of economic capacity
It is proposed that tax assessments be guaranteed, in the first place and on a mandatory basis, by means of a deposit certificate up to the maximum amount of the taxpayer's economic capacity.
In the event that the taxpayer's economic capacity is not sufficient to cover the tax assessment in its entirety by means of a deposit certificate, for which documentation must be shown to prove such extremes, the deposit certificate may be combined with some other form of guarantee in the following order:
- Letter of credit issued by one of the authorized institutions.
- Pledge, except over intangible goods.
- Mortgage, except for rural properties.
- Bond issued by an authorized institution.
- Joint and several obligations assumed by a third party who proves its suitability and solvency.
- Seizure of the business, tangible personal property, and immovable property, except for rural properties.
Likewise, it is proposed to eliminate securities or credit portfolios as a means of guaranteeing tax interest.
Finally, it is provided that the tax authority must qualify the sufficiency of the guarantee at the time of its offer and not its acceptance, since the authority may take up to 3 months to accept it.
Obligation to guarantee tax assessments in an administrative appeal
The Bill proposes to remove the privilege of not guaranteeing the Federation's fiscal interests when an appeal for revocation is filed. In this context, according to the Bill, the tax assessment subject to challenge through an appeal must be secured within 30 working days.
Provisions on the Simplified Trust Regime
In the explanatory memorandum, it is pointed out that, in view of the release from the obligation of taxpayers subject to the RESICO to file the annual return provided for in the Miscellaneous Tax Regulations, the Bill proposes to eliminate as a case for the temporary restriction of digital certificate, that individuals subject to said regime fail file their annual return.
Likewise, it is provided that for individuals who pay taxes under the RESICO, a mitigated fine will be applicable in the event that they do not issue, deliver or make available to their customers the tax receipts of their activities.
Deadline for notifications
The Bill proposes to extend from 3 to 20 business days the maximum period for the tax authority to notify acts issued in certain procedures, such as precautionary seizure, freezing of accounts, among others.
The explanatory memorandum points out that the period of 3 working days was insufficient for the tax authority to make the notifications, especially when electronic means, courts or edicts were used, which given their nature, require longer periods.
Regarding the excise tax, proposals were made that have a significant impact on various sectors. The following are the main proposed changes:
Manufactured Tobacco
The Bill proposes an increase to the rates applicable to cigars and manufactured tobacco, from 160% to 200%. In the case of handmade cigars and tobacco, the rate would increase from 30.4% to 32%.
Additionally, a gradual adjustment in the specific quotas from 2026 to 2030 is proposed, which would go from $0.8516 to $1.1584 per cigar. From 2031, these quotas would be updated in accordance with inflation.
It is also proposed to tax products containing nicotine (natural or artificial), including nicotine bags, at a rate of 200% and with a specific quota.
The quota would be calculated based on the nicotine content equivalent to that of an average cigar (0.8 mg).
On the other hand, an excise tax exemption is added for nicotine replacement products that have sanitary registration as a medicine.
Flavored Beverages with Added Sweeteners
In terms of flavored beverages, an adjustment to the specific quota is proposed, increasing from $1.6451 per liter in 2025 to $3.0818 in 2026, so that the joint charge of excise tax and VAT would represent just over 22% of the retail price of the most marketed beverage.
The Bill also includes flavored beverages with added sweeteners, natural or artificial, within the taxable base. The proposal is based on public health considerations, derived from the high prevalence of obesity, diabetes and other chronic diseases linked to excessive consumption of sugars and sweeteners.
Games with Bets and Sweepstakes
In relation to games with bets and raffles, it is proposed to increase the excise tax rate from 30% to 50%. The adjustment seeks to align Mexico's tax treatment with international practices.
Additionally, it is proposed to tax games with bets and raffles carried out through the internet or electronic means by residents abroad without an establishment in Mexico with the same rate of 50%.
As a sanctioning measure for non-compliance, the temporary blocking of digital services is included.
Video Games with Violent, Extreme, or Adult Content
Finally, the Bill proposes to tax with an 8% excise tax rate the alienation and digital access to video games with violent, extreme or adult content, not suitable for children under 18 years of age.
This tax would apply both to physical sales and to digital access or download services, including purchases within video games and subscriptions that grant access to catalogs containing this type of titles.
Regarding memberships and subscriptions that include this type of titles, in the event that the provider does not segment the consideration per video game, it will be understood that 70% of the catalog is of violent, extreme or adult content.
Digital intermediate platforms shall be responsible for withholding and remitting the excise tax. Additionally, formal obligations are imposed on non-Mexican residents rendering services through these digital platforms.
As a sanctioning measure for non-compliance, the temporary blocking of digital services is included.
The Head of the Federal Executive Branch presented a reform Bill to the FDL. Among the amendments presented, the following stand out:
Services provided by the National Banking and Securities Commission ("CNBV")
It is proposed to harmonize the fees and procedures of the FDL with the recent changes to the Securities Market Law and the Investment Funds Law. This includes creating a simplified securities registration system to help small and medium-sized companies access the stock market more easily, reducing time and costs by waiving fees for studying and processing applications for simplified registration of securities in the National Registry of Values.
It is also proposed to establish a specific methodology for calculating the fee for simplified registration, applying a reduced factor and a maximum ceiling, according to the lower cost of the procedure.
Simplified issuers will not pay fees for inspection and surveillance by the CNBV, since supervision will fall to the corresponding stock exchange.
Concepts and quotas for the derivatives contracts sector are updated, replacing "futures and options" with "derivatives contracts" to align with current regulations.
Telecommunications and Broadcasting Services
The FDL is amended to align with the new Law on Telecommunications and Broadcasting, which replaces the previous law and extinguishes the Federal Telecommunications Institute, so that legal references and legal figures in the FDL are updated, eliminating concession modalities that no longer exist (such as experimentation and radio amateurs), and adapting the charges to the new figures of authorizations and licenses.
The use of spectrum bands for experimentation, testing or amateur radio will no longer be by concession, but by authorization or license, and the rights and exemptions are adjusted accordingly.
It proposes the repeal of exemptions and duties that no longer correspond to the new legal framework, and the addition of new exemptions for authorizations of frequency bands intended for embassies and diplomatic missions.
The procedures and duties for sharing and the secondary use of frequency bands are standardized, eliminating obsolete terms and aligning the tax law with the sectoral law.
Services related to Water and its Inherent Public Goods
In the explanatory memorandum, it is pointed out that article 192-B of the FDL establishes the collection of duties for the study, processing and issuance of the water quality certificate in relation to discharges. The certificate before the National Water Commission shall be required by taxpayers to access the exemption from the water duty.
In this sense, the Bill proposes to eliminate the fee for the issuance of said certificate, since the only purpose it has is to access the exemption from the right to water.
Duties for the use or exploitation of national waters
The total exemption from the duties for the use and exploitation of national waters for taxpayers who have a water quality certificate is eliminated.
It is proposed to amend article 231-A of the FDL to establish that the National Water Commission is responsible for monitoring that the resources it allocates for the implementation of programs to improve water infrastructure, and, in the event that this is not demonstrated, these resources must be returned, in which case the payment order may be made effective through the administrative enforcement procedure.
The table of permissible limits for metals and cyanides of article 282 of the LFF is approved to homologate it with NOM-001-SEMARNAT-2021.
Use of radio spectrum
It is proposed to include an enabling regulation that allows the granting of discounts to concessionaires of frequency bands of the radio spectrum, which will be determined jointly by the Digital Transformation and Telecommunications Agency and the Ministry of Finance and Public Credit, in accordance with the general provisions issued by the Telecommunications Regulatory Commission. This discount is aimed at increasing the areas of internet coverage.
It is proposed to add the figure of intelligent radiocommunications networks, which is defined as the "radiocommunications network that is established in a delimited geographical area, for exclusive use for the particular needs of industries or other sectors, and that is logically, technically and/or physically separated from public telecommunications networks". This type of network is intended for private self-provisioning.
Finally, it is proposed to add article 244-K to the FDL to include that payments for the right to use the spectrum shall be made regardless of complying with the tax obligations set forth in the concession titles granted.
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