The Senate has approved the tax reform proposal for fiscal year 2026 submitted by the Federal Executive, 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 initiative submitted by the head of the Federal Executive underwent minor changes as throughout the review by the Mexican Congress, highlighting a reduction in ETL rates, certain provisions regarding the type of information that tax authorities would have access to with respect to digital platforms, as well as a tax incentive intended for the insurance sector.
The following are the main changes:
The FRL for 2026 includes the following topics:
Surcharge rate for tax assessments
The rates in cases of unpaid tax assessments are modified as follows:
I. The rate is increased from 0.98% to 1.38% per month on unpaid balances
II. When payment in installments is authorized:
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
The FRL maintains the following tax incentives:
In turn, the FRL exempts 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 FRL provides the following:
Tax regularization program for individuals and legal entities
Repatriation of capital
Tax Exemption for Organizers of the 2026 FIFA World Cup
Insurance Institutions
Filing of an Administrative Appeal
Administrative Facilities for Credit Institutions Regarding Uncollectible Credits
The SAT, through general provisions, may grant administrative facilities to the credit institutions to comply with the obligations related to proving the practical impossibility of recovering uncollectible debts, for purposes of the deductibility thereof.
The following amendments to the FFC have been approved:
Dealing with false tax invoices
One of the main goals of the amendment is to address simulated transactions documented with tax invoices.
To achieve this objective, different measures are established, emphasizing the following:
New cases of temporary restriction or cancellation of the digital seal certificate for invoicing
The amendment adds 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 FFC provides 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 established 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 established 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 Tax Miscellaneous Tax Regulations in force.
Real-time review of digital platforms
The amendment establishes a new obligation for digital service providers (residents who qualify as intermediaries 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 solely to the information allowing the corroboration of due of compliance with tax obligations contained in their systems or records related to the, 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.
These provisions of the CFF will enter into force on April 1, 2026.
Administrative review
The amendment specifies that the administrative review will only proceed with respect to tax assessments.
In the explanatory memorandum and the technical opinions of the Senate and Chamber of Deputies, 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
The tax authorities will be empowered 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 amendment 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, 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 is added. 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 FFC is to amended 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 provided 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 amendment establishes 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 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 CFF states 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 FFC 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
The obligation by means of which registered public accountants are required to inform the tax authority of conducts that may constitute tax crimes is eliminated, 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
The payment of customs tax assessment in installments is allowed, 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 FFC 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 amendment expands 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 amendment equates 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.
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 established that tax assessments shall 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, the FFC eliminates 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 amendment removes the possibility of not guaranteeing the Federation's fiscal interest when an appeal for revocation is filed. In this context, according to the FFC, the tax assessment subject to challenge through an appeal must be secured within 30 working days.
In the FRL, it is established that taxpayers who, as of January 1, 2026, file an administrative appeal in due time, may guarantee the fiscal interest within six months from the date the appeal was filed. If the appeal is resolved before the six-month period, the taxpayer must guarantee the fiscal interest within ten days following the date on which the notification of the corresponding ruling becomes effective.
Provisions pertaining to the Simplified Trust Regime
In the explanatory memorandum and the technical opinions of the Senate and Chamber of Deputies, it is pointed out that, in view of the release from the obligation of taxpayers subject to the simplified trust regime ( “RESICO”) to file the annual tax return provided for in the Tax Miscellaneous Regulations and simplify the tax compliance, the FFC eliminates 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 related to their activities.
Deadline for notifications
The FFC extends 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.
Regarding the ETL, the Chamber of Deputies introduced several amendments to the bill originally proposed by the Federal Executive branch, which were approved by the Senate. Notwithstanding, certain amendments remain which significantly impact various sectors. The main changes are highlighted below:
Manufactured Tobacco
The amendment increases 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 provided to tax products containing nicotine (natural or artificial), including nicotine bags, at a rate of 100% 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 established, 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. As for beverages containing any type of added sweeteners, the sale and importation will be subject to a quota of MXN $1.500 per liter.
The quotas will be updated annually and will enter into force on January 1 of each year, based on the corresponding indexation factor corresponding from December of the penultimate year to December of the immediately preceding year.
In addition, it is clarified that no excise tax will be levied on the sale or importation of rehydration drinks containing anhydrous glucose, potassium chloride, sodium chloride, and trisodium citrate.
The FFC also includes flavored beverages with added sweeteners, natural or artificial, within the taxable base. The amendment 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 increased 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 FFC taxes 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 following reforms to the FDL are noteworthy:
Services provided by the National Banking and Securities Commission ("CNBV")
The fees and procedures of the FDL are harmonized 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.
In turn, the amendment modifies Article 29-D to update factors, minimum limits, and incorporates maximum limits on inspection and surveillance fees for various sectors supervised by the CNBV. Likewise, specific calculation provisions for brokerage houses and regulated multiple-purpose financial companies have been repealed.
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.
The FDL further establishes 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 amendment eliminates 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.
Article 231-A of the FDL is amended 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
An enabling regulation that allows the granting of discounts to concessionaires of frequency bands of the radio spectrum is included, 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.
The figure of intelligent radiocommunications networks is added, 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, article 244-K of the FDL is added 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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