Mexico

Mexico's Rankings
CategoryRankScore
Overall Rank2954.18
Corporate Taxes3245.14
Individual Taxes1273.92
Consumption Taxes2562.22
Property Taxes974.76
International Tax Rules3536.28

Mexico ranks 29th overall on the 2019 International Tax Competitiveness Index, the same as in 2018.


Strengths

  • The personal income tax rate on dividends is 17.1 percent, below the OECD average of 23.8 percent.
  • Corporations can deduct property taxes when calculating taxable income.
  • Mexico allows for Last-In-First-Out treatment of the cost of inventory.

Weaknesses

  • Compliance time associated with corporate and consumption taxes is approximately 100 hours.
  • Companies are limited in the amount of net operating losses they can use to offset future profits and are unable to use losses to offset past taxable income.
  • Mexico has a higher-than-average corporate tax rate of 30 percent (the OECD average is 23.6 percent).

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