Photo: The Rio TimesPhoto: The Rio TimesMexico
Mexico's lower house passes 2027 income tax law limiting deductions for large firms
Companies above the income threshold face tighter deductions from 2027, which matters for the tax planning of Mexican units of multinational firms.
What happened
Mexico's lower house voted 349 to 92 on Tuesday, 3 November, to give final approval to a 2027 income tax law. The Rio Times+1 The law caps deductions and losses for large companies, with firms whose income is above 50 million pesos facing the caps. The Rio Times Interest write-offs drop from 30% to 20% under the law. The Rio Times The law takes effect for large firms from 1 January 2027, and automakers and gas stations are exempt. The Rio Times+1 The vote sends the law to the president for publication in the official gazette. The Rio Times+1
Around it
The Senate added the exemption for automotive companies and gas stations, which drew criticism from opposition lawmakers. MEXICONOW The federal government's original proposal aimed to limit tax deductions and losses as part of efforts to combat tax evasion and avoidance. MEXICONOW President Claudia Sheinbaum's Morena party and its allies hold the majority in both chambers of Congress. The Rio Times With this vote, the full fiscal package in the 2027 Economic Package was approved, although the October 31 deadline had passed, and lawmakers argued that date applied only to the Federal Revenue Law. MEXICONOW
What comes next
The law must be published in the Diario Oficial de la Federación, which has no date yet. The Rio Times+1
Sources
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