Mexico Corporate Income Tax

Mexico imposes a flat 30% corporate income tax (ISR) on all resident companies on their worldwide income. Non-resident companies are taxed on Mexican-source income only. There is no reduced rate for small businesses, although certain simplified tax regimes exist for smaller taxpayers with lower gross income thresholds. Companies must make monthly provisional tax payments and file an annual return by March 31. Mexico also imposes a 10% withholding tax on profit distributions to shareholders. Transfer pricing rules follow OECD guidelines, and thin capitalization rules limit interest deductions on loans from related parties.