Mexico

Mexico's Rankings
CategoryRankScore
Overall Rank3352.47
Corporate Taxes3147.43
Individual Taxes1666.49
Consumption Taxes2661.27
Property Taxes970.04
Crossborder Taxes3637.46

Mexico ranks 33rd overall on the 2021 International Tax Competitiveness Index, the same as in 2020.


Strengths

  • The personal income tax rate on dividends is 17.1 percent, below the OECD average of 23.9 percent.
  • Corporations can deduct property taxes when calculating taxable income.
  • Mexico allows for Last-In-First-Out treatment of the cost of inventory.

Weaknesses

  • Average compliance time associated with corporate and consumption taxes is estimated to be around 100 hours for each tax annually.
  • The VAT base is the narrowest in the OECD, with only one third of final consumption being taxed.
  • Mexico has a higher-than-average corporate tax rate of 30 percent (the OECD average is 22.9 percent).

Learn more about the tax system in Mexico

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