Mexico proposes stricter tax deduction limits to combat evasion

Mexico's Ministry of Finance (SHCP) is proposing new measures for the 2027 Economic Package to curb tax evasion and strengthen revenue collection. Officials reported that in 2025, only 40% of approximately 500,000 companies with positive income actually paid their corresponding taxes. To address this, the government proposes limiting deductions to 96% of income and restricting the use of previous fiscal losses to 50% of current fiscal utility for companies with revenues exceeding 50 million pesos.

The Tax Administration Service (SAT) is also intensifying its oversight through digital tools and artificial intelligence. Authorities noted that companies with the lowest tax payments often present fake invoices in up to 10% of their documentation to artificially inflate deductions. The SAT's 'Deep Surveillance' (Vigilancia Profunda) program has proven highly effective, generating significant revenue through data crossing and automated monitoring.

For 2026 and 2027, the SAT plans to focus audits on high-risk behaviors, such as operating with shell companies, simulating payroll, or presenting recurring fiscal losses without economic justification. These technological enforcement measures can lead to the restriction or cancellation of digital certificates, preventing companies from issuing invoices.