- From January 1, 2026, Mexico’s VAT and tax withholding rules for digital platforms will apply to legal entities, not just individuals.
- Legal entities earning income via digital platforms face a 2.5% income tax withholding, or 20% if they don’t provide their Taxpayer Identification Number (RFC).
- 100% VAT withholding applies to foreign residents without a permanent establishment in Mexico and to those depositing funds in foreign bank accounts.
- Digital platforms must withhold and report taxes, issue digital tax receipts, and provide detailed seller/service provider information to authorities.
- The changes expand tax compliance obligations and introduce stricter reporting requirements for digital platforms.
Source: fintua.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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