FEDERATION REVENUE LAW FOR FISCAL YEAR 2025
Dear clients and friends:
On December 19, 2024, the Federation Revenue Law for Fiscal Year 2025 was published in the Official Gazette of the Federation. This document contains the catalog of taxes in effect for the current year and the expected revenue collection. According to its First Transitory Article, this law came into force on January 1, 2025.
Below, we highlight the most relevant points:
1. Public Debt
Domestic Debt:
Authorization for net domestic debt of up to $1.58 trillion pesos to finance the Federation Expenditure Budget.
External Debt:
Authorization for net external debt of up to $15.5 billion USD.
Mexico City:
Approval of net debt of $3.5 billion pesos for projects included in Mexico City’s Expenditure Budget.
2. Administrative Provisions
In cases of extensions for payment of tax credits:
Monthly surcharges on unpaid balances:
0.98% per month.
Installment payments:
Up to 12 months: 1.26% per month.
Between 12 and 24 months: 1.53% per month.
More than 24 months or deferred: 1.82% per month.
The default surcharge rate remains at 1.47% per month.
3. Fine Waivers
During fiscal year 2025, a fine waiver is established for taxpayers who regularize their fiscal status under the following conditions:
50% waiver of the fine if the taxpayer rectifies before notification of the final act or observation letter.
60% waiver if rectification occurs after these acts but before a definitive resolution.
In all cases, omitted contributions and their accessories must be paid.
4. Tax Incentives
Diesel and biodiesel deductibility: For business, agricultural, and transportation activities. Applicable to taxpayers with income below $60 million pesos.
Road infrastructure: Tax incentive for toll road expenses for land transport.
Mining sector: Credit for the special mining duty for income under $50 million pesos.
Sale of books, newspapers, and magazines: Additional deduction of 8% on costs.
5. Exemptions
Exemption from the customs processing fee for importing natural gas.
6. Income Tax Withholding
The annual withholding rate for Income Tax (ISR) in 2025 will be 0.50%.
7. Additional Tax Incentive
A 100% tax incentive on fines, surcharges, and enforcement expenses is granted under certain conditions for taxpayers with annual income below $35 million pesos.
Applicable to tax credits from fiscal years 2023 or earlier, provided payment is made in a single installment before December 31, 2025.
The tax credit cannot be paid in kind or through compensation.
Final Notes:
The structure of the 2025 Revenue Law maintains the basic guidelines of the 2024 law. Shortly, we will send a summary of this bulletin with the general rules issued to date by the Tax Administration Service (SAT) regarding the 100% tax incentive on fines, surcharges, and enforcement expenses.
As always, Valdés Morán y Asociados remain at your service for any inquiries related to this information.
