Mexico proposes ISR modifications to target aggressive tax planning

Alfonso Ramírez Cuéllar, the Morena vice-coordinator in the Chamber of Deputies, stated that proposed modifications to the Income Tax (ISR) for 2027 will not affect companies that comply with their fiscal obligations. He noted that the measures were discussed with business chambers and companies prior to the delivery of the 2027 Economic Package.

Ramírez Cuéllar reported that out of 524,000 companies in the general regime that declared income in 2025, 318,000 paid no ISR due to aggressive tax planning or the use of false invoicing. He indicated that some companies have reported losses or manipulated deductions for up to 20 years. By limiting these deductions and fiscal losses, the government aims to collect nearly 150 billion pesos by 2027, targeting practices that currently benefit only large firms with specialized legal services.