Mexico: Tax Settlement Rules for 2019

While the Mexican economic plan for fiscal year 2018 included neither new tax nor tax increases, it did change existing tax standards with view to VAT and income tax. Specifically, a new tax settlement regulation is in effect since January 1st, 2019.

Until now, companies that qualified for VAT returns had to use their cashflow or other financing methods to pay their other tax duties (e.g. income tax ISR) because they could not use their VAT tax credit to offset them. This changes with the new regulation. From now on, tax settlement through tax credit is possible for same-type taxes with view to income tax.

The goal of the measure is to increase the solvency and cashflow of companies. Furthermore, the tax authority SAT plans to implement new regulations that simplify tax returns for taxpayers that meet specific criteria.


These regulatory changes could affect your business with view to customizing or support of your ERP/SAP system. Please contact us to learn about possible necessary reactions to the changes – we are happy to assist you!