The 2026 Economic Package: More Revenue, No New Taxes

The Mexican government has presented its Economic Package for 2026, and the promise of "zero new taxes" holds firm. However, a detailed analysis reveals a clear strategy: increasing tax revenue through stricter enforcement and updates to existing laws. For foreign investors with businesses in Mexico, it's crucial to understand the implications. Here, we highlight the key points that directly impact your operations.

1. The Expansion of the SAT's Power

One of the most significant changes is the strengthening of the Tax Administration Service (SAT). The tax authority will now have the power to review account statements from any financial institution, including fintechs, SOFIPOs, and electronic payment platforms. This change reflects the government's intention to have complete visibility over financial movements that occur outside the traditional banking system.

What this means for you: If your business uses digital payment platforms or non-traditional financial services, it's vital that you ensure total transparency and traceability of your operations to avoid tax risks. The era of "invisible" transactions is over.

2. New Withholding Taxes on Digital Platforms

Intermediation platforms like Amazon, Mercado Libre, and Airbnb will have new tax withholding percentages for users who sell or offer services through them.

• For legal entities: The withholding rate will be 4% if they provide their RFC (tax ID). If they do not, the withholding can go up to 20%.

• VAT Withholding: VAT withholding will be 8% for those with an RFC and 16% for those without.

What this means for you: If your business operates through these platforms, you must ensure all your tax information is up-to-date to avoid excessive withholdings. Reviewing your revenue and cost structures on these platforms is now more important than ever.

3. The Return of Tariffs

In a move aimed at protecting domestic industry, a significant increase in tariffs has been proposed for the import of a wide range of products, including cars, auto parts, textiles, footwear, and toys. This strategy, similar to those in other countries, aims to make local production more competitive.

What this means for you: If your supply chain depends on importing goods or finished products from Asia (particularly China, South Korea, and India) or from countries without a free trade agreement with Mexico, your operational costs could be significantly affected. It's time to evaluate your procurement strategy and consider suppliers with free trade agreements or even look for local alternatives.

4. Flexibility for Foreign Capital and Tax Regularization

The package also includes two measures designed to attract investment and encourage regularization:

• Private Equity Funds: Requirements for foreign private equity funds to invest in Mexico are being simplified.

·         Fiscal Incentive

·         A tax incentive will be available for individuals and legal entities with income up to 300 million pesos that have outstanding tax credits, allowing them to have fines and surcharges condoned.

What this means for you: These measures may represent an opportunity for investment and for resolving outstanding tax issues. It's a good time to consult with an advisor to see if your company can benefit from these programs.

In short, the 2026 Economic Package is a call for formality and fiscal transparency. The rules of the game are being redefined, and to maintain your competitiveness, it is essential to have your tax and accounting strategy up to date.

At Cadena Advisors, we are ready to guide you through these regulations and ensure your business successfully adapts to this new environment. Contact us for a detailed analysis of your situation.