2025 Economic Package: Key Changes in Tax Matters

On Nov. 15, the Federal Executive Branch presented the Economic Package for 2025 (“EP 2025”) to Congress, which estimates around 294 billion United States Dollars (“USD”) in tax revenue.

The EP is a set of proposals, policies, and provisions that the Executive Branch presents annually to Congress by Nov. 15 at the latest, aimed at defining the main tax, budgetary, and financial guidelines for the Government for the following fiscal year.

This EP mainly consists of the General Criteria for Economic Policy [Criterios Generales de Política Económica] (“GCEP”), the Federal Expenditure Budget Bill [Presupuesto de Egresos de la Federación] (“FEBB”), the Federal Budget Bill [Ley de Ingresos de la Federación] (“FBB”), and the Initiative to amend, add and repeal various provisions of the Federal Fees Law [Ley Federal de Derechos].

The FBB 2025 projects a tax revenue collection of 5.3 trillion Mexican pesos (around 294 billion USD). So far, the Federal Executive Branch has not proposed any amendments to tax provisions, the creation of new taxes, or increases in existing ones.

The interest rates for payment of tax deficiencies remain at 0.98% per month on outstanding balances and 1.47% per month in case of delinquency. Likewise, the rates used in 2024 for deferral or in installments payments remain unchanged.

Meanwhile, the annual income tax withholding rate (“IRS”) applicable to interest-accruing amounts of capital of individuals and legal entities residing in the country by financial system entities will be 0.50%.

The EP 2025 also adds the possibility of canceling invoices no later than the month in which the annual ISR return corresponding to the tax year in which the invoice was issued is due.

For 2025, revenues from fees and public works taxes are projected at a total of 374 billion Mexican pesos (around 21 billion USD). This estimate responds to the proposed modifications to the Federal Fees Law and the inclusion of fees with specific purposes, refunds, and capital recoveries, which include the following changes:

1. Environment and Natural Resources: Update the fees for the non-extractive use and exploitation of Protected Natural Areas.
2. Mining: An increase in the special and extraordinary mining rights by raising the rates from 7.5% to 8.5% and from 0.5% to 1%, respectively.

The transitional provisions propose granting a tax incentive to taxpayers regarding penalties imposed for violations under tax, customs, and foreign trade laws; those resulting from non-compliance with tax laws other than payment obligations, and fines with aggravating circumstances, as well as related surcharges and collection expenses concerning federal taxes owed or withheld, or compensatory fees whose administration and collection are managed by the Tax Administration Service (“SAT”) or the National Customs Agency of Mexico.

Taxpayers who owe taxes or compensatory fees for the 2023 fiscal year or earlier and are subject to an audit or have a final and binding tax deficiency will be able to reduce 100% of the penalties, interests, and collection expenses.

The incentives will apply to the extent that the taxpayer´s income subject to IRS does not exceed 35 million Mexican pesos (around 1.9 million USD) and the taxpayer has not received any reduction, or benefit regarding the payment of assessments.

Finally, it is important to note that currently, Congress has been presented with various amendments aimed to amend tax provisions for fiscal year 2025. Among these, they proposed to reduce the deadlines for Value Added Tax (“VAT”) refunds, reducing the taxpayer’s deadline to respond requests for information from the tax authority from 10 to 3 days. This bill has not been studied or approved by the Commission.

Additionally, the bill to amend, add, and repeal various provisions of the Income Tax Law (“IRSL, the Value Added Tax Law (“VATL”), the Federal Excise Tax Law (“FETL”), the Federal Tax Code (“FFC”), and the Federal Law on Administrative Litigation Procedure (“FLALP”), proposed by the Speaker of the House of Representatives is pending approval.

It is necessary to continue monitoring the progress of these bills until their enactment to determine their impact in specific cases and identify possible defense strategies, including those of a controversial nature.

The attorneys at Clark Hill PLC are available to help you ensure compliance with your tax obligations or to take preventive measures to avoid potential contingencies. Please contact your regular Clark Hill PLC attorney or any of the following attorneys for assistance.

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