Politics · Mexico · 3 hrs ago
Mexico tax reform advances to lower house floor vote
A committee in Mexico’s Chamber of Deputies has approved changes to the country’s income tax law and sent them to the full chamber.
The proposed rules would cap some companies’ deductions at 99% and limit how much accumulated tax losses they can offset against profits each year.
Companies would have twice as long, 20 years instead of 10, to use those losses.
The Finance Ministry and tax authority say the changes are intended to combat firms that use fake invoices to reduce their tax bills.
The proposal would also raise the income limits for individuals and companies to join the Simplified Trust Regime, which is intended to bring more small businesses into the formal economy.
Business representatives and tax experts warn the deduction limits could constrain investment, cash flow and growth.
The committee approved the bill by 26 votes to nine, and the full Chamber of Deputies is expected to debate and vote on it before October 15.
Mexico’s Chamber of Deputies tax committee approved an income tax reform bill and sent it to the chamber floor for debate and a vote.
The committee approved the bill by 26 votes to nine, with no abstentions.
The proposal limits some corporate deductions and changes the rules for carrying forward tax losses.
It also raises income limits for individuals and companies to join the Simplified Trust Regime.
The government says the changes aim to combat tax evasion and make the tax system fairer, while business representatives warn they could constrain investment and company growth.
- Who
- Mexico’s Chamber of Deputies’ Finance Committee approved the bill.
- What
- The committee approved an income tax reform bill and sent it to the chamber floor for debate and a vote.
- When
- The committee vote was reported on October 13, 2026; a floor debate and vote were targeted before October 15.
- Where
- Mexico’s Chamber of Deputies.
- Why
- The government says the reform aims to combat tax evasion and make the tax system fairer and more efficient.
Mexican government
Business representatives and financial-sector critics
Purpose
Mexican government
The government says the reform would make the tax system fairer and more efficient and combat tax evasion.
Business representatives and financial-sector critics
They warn the measure could limit investment, cash flow and company growth.
The Finance Committee approved the bill by 26 votes to nine, with no abstentions.
The bill was expected to be debated and voted on by the full Chamber of Deputies.
- Committee vote
- 26 in favor, 9 against, 0 abstentions
- Individual RESICO income limit
- Raised from 3.5 million to 5 million pesos a year
- Company RESICO income limit
- Raised from 35 million to 50 million pesos
- Tax-loss deduction limit
- 50% of taxable profit in each tax year
- Tax-loss carryforward period
- Extended from 10 to 20 years
Sources
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