Politics · Mexico · 1 hr ago
Mexico lawmakers advance limits on company tax deductions
A Mexican congressional committee approved an income tax reform by 23 votes to eight.
The bill would limit deductions and tax losses for companies, including those with annual income above 50 million pesos.
The government says the changes aim to strengthen tax collection and fight evasion, without introducing new taxes or raising existing rates.
The proposal sets limits on how much companies can deduct, with exceptions for some businesses and activities.
Opposition lawmakers warn that companies could pay tax on more than their actual profits, leaving them with less money to invest or cover costs.
The bill now goes to the full chamber for debate in the coming days.
Mexico’s Chamber of Deputies finance committee approved a tax reform that would limit company tax deductions and losses.
The bill passed with 23 votes in favor and eight against, and was sent to the chamber’s leadership for consideration by the full chamber in the coming days.
The reform proposes a 96.67% deduction limit when deductions exceed that share of income, and a limit of up to 99% of authorized deductions in other cases.
The committee chair said the changes aim to strengthen the tax system and fight evasion without creating new taxes or raising existing rates.
Opposition lawmakers warned that the limits could raise companies’ tax bills, reduce investment capacity and threaten businesses.
- Who
- Members of the Chamber of Deputies’ Finance and Public Credit Committee.
- What
- They approved a tax reform that would limit company deductions and fiscal losses.
- When
- Monday; the article was published on October 13, 2026.
- Where
- The Finance and Public Credit Committee of Mexico’s Chamber of Deputies.
- Why
- The committee chair said the reform aims to strengthen the tax system and combat tax evasion without creating new taxes or raising rates.
Government coalition
Opposition lawmakers
Impact of deduction limits
Government coalition
The committee chair said the limits aim to reduce artificial cuts to tax payments by companies with income above 50 million pesos.
Opposition lawmakers
Opposition lawmakers warned the limits could raise taxes on companies’ actual profits, reduce liquidity and investment, and lead to business closures.
The Finance and Public Credit Committee approved the reform by 23 votes to eight.
The bill was sent to the Chamber of Deputies’ leadership for discussion by the full chamber in the coming days.
- Vote
- 23 in favor; 8 against
- Deduction threshold
- 96.67% of income
- Other deduction limit
- Up to 99% of authorized deductions
- Company income cited
- More than 50 million pesos
What people are saying
establish limits on the use of expenses and fiscal losses to artificially reduce tax payments in companies with income above 50 million pesos
Imagine a medium-sized company that sells 100 pesos and spends 98 pesos on salaries, materials, electricity and rent. It has a profit of 2 pesos. Well, this bill says that from those expenses, it will only be able to deduct a little less than 97 pesos, meaning it will pay taxes as if it had earned more than it did.
and still not be able to deduct them completely
Sources
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