Mexico
| Category | Rank | Score |
|---|---|---|
| Overall Rank | 33 | 52.47 |
| Corporate Taxes | 31 | 47.43 |
| Individual Taxes | 16 | 66.49 |
| Consumption Taxes | 26 | 61.27 |
| Property Taxes | 9 | 70.04 |
| Crossborder Taxes | 36 | 37.46 |
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