5 Trends to Watch: 2025 Tax Law — Mexico

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1. Increase in Excise Taxes — Starting Jan. 1, the Special Tax on Production and Services (IEPS) rose 4.5%, impacting goods such as gasoline, sugary drinks, and tobacco. This inflation-adjusted increase is expected to raise consumer prices for these items.
   
   
2. New Import Tariffs on eCommerce Goods — Mexico is introducing a 19% tariff on goods entering the country via courier from nations without international trade agreements. This move primarily targets Chinese online retailers, aiming to regulate imports and promote fair competition, but it may lead to higher costs for consumers.
   
   
3. Potential Tax Reform Discussions — President Claudia Sheinbaum has expressed interest in exploring tax reform to increase revenue collection. While no immediate changes are planned, a stronger emphasis on simplifying compliance and expanding the tax base could be a priority in future tax policies.
   
   
4. Energy Sector Tax Incentives and Adjustments — The government is expected to revisit tax incentives for energy-related projects, particularly in renewable energy. These measures aim to promote investment in green energy while maintaining strict oversight of compliance in the hydrocarbons sector. The energy tax landscape will likely evolve in response to global climate commitments and domestic energy priorities.
   
   
5. Focus on Digital Taxation and Expenses on Services — Mexico’s 2025 Economic Package emphasizes digital audits and pre-calculated taxes through electronic invoicing. Companies likely will need to adapt to more robust digital tax compliance requirements, including real-time reporting and electronic accounting standards. Additionally, stricter scrutiny and controls are expected to be implemented to ensure that expenses on services are deducted for income tax purposes only when taxpayers can prove that the services were effectively rendered.

About the Authors:

Erika Baez focuses her practice on tax consulting services, including the design of integrated strategies for domestic and international organizations, including companies listed on the stock exchange. Her experience as tax law adviser brings wide-ranging knowledge of the energy, infrastructure, consumer goods and retail, health care, financial services, and technology sectors.

Eduardo Medina focuses his practice on tax consulting, planning, and structuring private and public real estate investment funds, as well as in the planning and structuring of joint ventures and corporate reorganizations.