Francisco Bracamonte
Tax Partner at Kreston BSG
Mexico’s 2027 Income Tax Reform Bill: Key changes for businesses
September 24, 2026
Mexico’s 2027 Income Tax Reform: What businesses need to know
Mexico’s proposed 2027 Income Tax Reform could introduce significant changes for legal entities operating in the country, affecting everything from deductions and tax losses to interest expenses, payments to nonresidents and investment incentives.
Download the full analysis here
Submitted by the Federal Executive to the Chamber of Deputies on 8 September 2026, the bill proposes a number of changes to the current Income Tax regime. Kreston BSG Mexico has analysed the principal provisions and their potential consequences for businesses.
One of the most significant proposals concerns companies with taxable income exceeding MXN 50 million. The bill would restrict the amount of authorised deductions that can be taken in the same fiscal year and limit the use of tax loss carryforwards to 50% of taxable profit. The Kreston BSG analysis highlights how the two measures could interact, increasing taxable profit before the restriction on tax losses is applied.
Other proposed changes include new timing rules for deductions and withholding tax on payments to nonresidents, modifications to the CUFIN and CUCA accounts, and tighter restrictions on net interest deductions. The latter would reduce the current limit from 30% to 20% of adjusted taxable profit for affected entities.
The proposals also contain opportunities. Plan México tax incentives would be incorporated into the Income Tax Law, including immediate deductions for qualifying new fixed-asset investments and an additional 25% deduction linked to increased training or innovation expenditure.
With changes potentially affecting tax planning, cash flow, financing and investment decisions, businesses with operations in Mexico should understand how the proposals could affect them.
Download Kreston BSG Mexico’s full analysis of the 2027 Income Tax Law Reform Bill for a detailed examination of the proposed changes.
Article based on analysis by Francisco Bracamonte, Legal and Tax Partner, Kreston BSG Puebla.
