A new income tax bill that the Mexican government aims to implement from 2027 could result in income tax being imposed on loss-making companies as well. The measure is expected to cover corporations with annual taxable income exceeding 50 million pesos and could affect Japanese companies.
The tax reform proposal put forward by the Mexican government is intended to take effect from 2027. It has been reported that loss-making companies may also generate income subject to taxation for tax purposes, raising concerns that companies' tax burdens could increase.
Under the new income tax law, corporations with annual taxable income exceeding 50 million pesos would be covered, and losses recorded by those reporting a deficit would be incorporated into taxable income. The specific application has not been detailed in the article, but it suggests a direction in which some income tax would also be imposed on loss-making companies.
The move has prompted growing opposition, particularly among government-affiliated organizations, to an approach described as “taking from those easiest to tax.” If enacted, the new system would take effect from 2027 and could affect companies' financial strategies.
Mexico's proposed amendments are said to potentially affect foreign companies, including Japanese companies. Japanese companies operating overseas are watching future discussions and developments concerning the conditions for application.