Tax Obligations for Foreign Entrepreneurs: Paying Business Taxes in Mexico

Staring at the federal tax portal while trying to decipher corporate tax obligations is enough to make any foreign business owner question their expansion plans. I remember breaking out in a cold sweat when my first Mexican corporate tax declaration bounced back due to a single misplaced digit. This guide breaks down exactly how to navigate business taxes confidently here.

Setting Up Your Corporate Tax Identity in Mexico

Before you can legally issue a single invoice or deduct a single business expense, you must establish a flawless corporate tax identity. The Mexican government does not allow informal business operations, and the administrative gates you must pass through to become a recognized corporate taxpayer are rigid, highly bureaucratic, and deeply unforgiving of mistakes.

Demystifying the RFC and Electronic Signatures

The absolute foundation of your commercial existence in this country is the Registro Federal de Contribuyentes, universally known as the RFC. For a business, this is your corporate tax identification number. You cannot open a business bank account, sign a commercial lease, or legally hire an employee without it. To obtain your corporate RFC, your legal representative must attend a highly coveted, in-person appointment at a local office of the Servicio de Administración Tributaria, the national tax authority.

During this appointment, the tax officials will not just hand over a piece of paper. They will capture biometric data, including fingerprints and iris scans, to link the physical person to the corporate entity. They will then load your e.firma, a highly encrypted digital signature, onto a physical USB drive. This electronic signature is legally binding and is required to log into the tax portal, approve monthly declarations, and authorize your accounting software to issue invoices. Guard this USB drive with your life, as losing your e.firma effectively paralyzes your entire company.

I have seen fellow expats show up to these tax appointments missing a single apostille on their foreign incorporation documents, only to be turned away and forced to wait two months for another appointment slot. To avoid this, your foundational personal paperwork must be perfect before you even attempt corporate registration. You can review the personal documentation standards in our guide on How to Get a CURP as a Foreigner: The Mexican ID Number Explained.

Frequently Asked Question: Can I hire a lawyer to get my RFC and e.firma without me being physically present? No. While lawyers can prepare the paperwork, the capture of biometric data means the designated legal representative of the company must sit physically in front of the tax official. Understanding the specific instructions the official gives you during this process is vital. Using SpanishPod101 to familiarize yourself with Mexican administrative and legal vocabulary ensures you do not accidentally agree to a restriction on your tax profile simply because you misunderstood the clerk’s rapid-fire Spanish.

Selecting the Optimal Tax Regime

When you register your business with the tax authority, you are forced to choose a specific tax regime. This classification dictates your exact tax rates, your filing deadlines, and your legal liabilities. Most foreign entrepreneurs choose to incorporate as a Persona Moral, which is the equivalent of a standard corporation or LLC. This establishes your business as a distinct legal entity, separating your personal assets from your corporate liabilities.

However, if you are operating as a solopreneur or a high-earning independent contractor, you might register as a Persona Física con Actividad Empresarial. This regime treats you as an individual doing business, which carries different deduction rules and progressive tax rates. Choosing between these regimes requires forecasting your revenue accurately and understanding your overhead costs. If you choose a corporate structure but operate like a freelancer, the administrative overhead will crush your profit margins.

Imagine registering as a full corporation because it sounded professional, only to realize you are now liable for mandatory employee profit-sharing and complex monthly balance sheet reporting, even though you are a solo consultant.

Frequently Asked Question: Can I change my tax regime later if my business scales? Yes, it is legally possible to transition from a sole proprietorship regime to a formal corporate regime, but the administrative transition is a nightmare of audits and re-registrations. It is far better to consult with a certified local accountant before your initial registration.

The Crucial Role of Your Legal Representative

Mexican corporate law requires every foreign-owned entity to appoint a legal representative who is physically located in the country and holds a valid personal RFC. This person acts as the legal face of the company before the government, the banks, and the labor boards. They are the ones who sign the incorporation deeds and authorize the tax filings.

The liability carried by a legal representative is immense. Under recent tax reforms, if the corporation is found guilty of tax evasion or fails to pay its monthly declarations, the tax authority can hold the legal representative personally and criminally liable. Because of this massive risk, finding a trustworthy local citizen or a deeply established expat to act as your representative if you do not yet have your own permanent residency is one of the hardest hurdles of market entry. If you are trying to act as your own representative, you must first ensure your immigration status allows it, a topic covered deeply in Understanding the Residente Temporal Lucrativa vs No Lucrativa (With/Without Work).

Because the legal representative must sign highly complex, legally binding Spanish documents on behalf of your financial investment, you must be able to read what they are signing. Blind trust is not a business strategy. Dedicating time to SpanishPod101 to master advanced corporate terminology empowers you to audit the documents your representative is submitting, ensuring your company remains compliant and your investment remains secure.

Navigating the Corporate Income Tax Landscape

Once your identity is established, the reality of paying taxes begins. The corporate income tax system here is robust, heavily enforced, and operates on a timeline that frequently catches foreign business owners completely off guard, destroying their initial cash flow projections.

Understanding the Thirty Percent Flat Rate

The standard Corporate Income Tax, known locally as Impuesto Sobre la Renta, is levied at a flat rate of thirty percent on all taxable profits. Unlike personal income tax, which operates on a progressive tier system, or corporate taxes in some other jurisdictions that offer lower rates for small businesses, a Mexican corporation pays this flat thirty percent regardless of whether it makes ten thousand dollars or ten million dollars in profit.

This rate applies to the company’s worldwide income if the entity is a Mexican tax resident. It encompasses all active business revenue, as well as passive income streams like interest, royalties, and capital gains from the sale of corporate assets. Understanding that almost one-third of your net profit belongs to the federal government requires aggressive and meticulous pricing strategies when you launch your products or services in the local market.

Many foreign investors assume they can utilize massive first-year write-offs to lower this burden, only to discover that the local tax code is incredibly strict regarding what constitutes a valid business expense. If you are currently calculating whether your profit margins can sustain this thirty percent hit while also covering your personal living expenses, reviewing Mexico Immigration Fees and Costs: Budgeting for Your Residency will help you balance your corporate budget against your personal expat lifestyle requirements.

Frequently Asked Question: Does Mexico offer tax incentives for new foreign businesses? While there are no general tax holidays simply for being a new business, companies operating in designated Special Economic Zones or engaging in heavy research and development can apply for specific tax credits. However, securing these credits requires years of flawless auditing.

Managing Monthly Advance Payments

The most shocking aspect of the corporate income tax system for new expats is the requirement to make provisional advance payments every single month. You do not wait until the end of the year to calculate your profit and pay a lump sum. The tax authority demands their cut by the seventeenth day of every month, based on your gross revenue for that month multiplied by a pre-determined profit coefficient.

This profit coefficient is calculated based on your company’s financial performance in the previous fiscal year. However, during your first year of operation, you do not have a historical profit coefficient. This means you generally do not make monthly advance payments during your inaugural year, but you will be hit with a massive, cumulative tax bill the following March when you file your first annual return. In your second year, you must start paying monthly based on that first year’s data.

Imagine a scenario where your company had a massively profitable first year, resulting in a very high profit coefficient. In your second year, the market crashes, and your actual profit margins are razor-thin. You are still legally required to make monthly advance tax payments based on the previous year’s high coefficient, which can completely decimate your daily cash flow.

Deductions Depreciation and Thin Capitalization

To lower your thirty percent tax burden, you must aggressively track your authorized deductions. However, a business expense is only legally deductible if it is strictly indispensable for the operation of the business, and crucially, it must be supported by a perfectly formatted electronic invoice. If you buy a thousand dollars worth of office supplies but fail to get the official digital invoice from the vendor, that expense essentially does not exist in the eyes of the tax authority.

Depreciation of fixed assets is also heavily regulated. You cannot fully deduct the cost of heavy machinery or computer servers in the year of purchase. The tax code mandates maximum annual depreciation percentages—for example, office furniture might be depreciated at ten percent per year, while computing equipment might be depreciated at thirty percent. Tracking these multi-year amortization schedules requires sophisticated accounting software tailored to local laws.

Furthermore, if you are financing your Mexican subsidiary with loans from your foreign parent company, you must adhere to thin capitalization rules. Mexico imposes a strict three-to-one debt-to-equity ratio. If your corporate debt exceeds three times your equity, the interest payments on that excess debt are absolutely not tax-deductible.

Frequently Asked Question: Can I deduct client entertainment and meals? Business meals are heavily restricted. Generally, you can only deduct a small fraction of a restaurant bill, and only if the meal occurred outside of a specific radius from your registered fiscal address, and only if paid with a corporate card. Negotiating these complex deduction rules with local vendors requires precise phrasing. Utilizing SpanishPod101 to learn exact accounting terms ensures you ask for the correct documentation at the point of sale, saving you thousands in lost deductions.

Mastering the Value Added Tax System

While corporate income tax targets your profits, the Value Added Tax system affects every single transaction your business conducts. It is an indirect tax, meaning your business acts as an unpaid tax collector for the federal government, and mishandling these funds leads to immediate, severe penalties.

How the Sixteen Percent Tax Works

The standard Impuesto al Valor Agregado is sixteen percent, and it is applied to the vast majority of goods and services sold within the country. When you invoice a local client, you must add this sixteen percent to your subtotal. The client pays you the full amount, but that sixteen percent does not belong to your company. You are holding it in trust for the government.

Simultaneously, when your business purchases supplies, pays rent, or hires a local marketing agency, you are paying a sixteen percent tax to those vendors. This is your input tax. At the end of every month, you must calculate the difference. You take all the tax you collected from your clients, subtract all the tax you paid to your vendors, and remit the exact difference to the government by the seventeenth of the following month.

If you collected more tax than you paid out, you owe the government money. If you paid out more tax than you collected (a common scenario when purchasing heavy startup equipment), you have a positive tax balance. You can carry this balance forward to offset future months, or you can request a cash refund from the government, though the refund process is notoriously slow and often triggers a defensive audit.

Frequently Asked Question: Do all products carry the sixteen percent rate? No. Certain basic food items, agricultural products, and prescription medicines are subject to a zero percent rate. Additionally, businesses operating in designated border zones can sometimes apply for a reduced eight percent rate to remain competitive with neighboring international markets.

Exported Services and the Zero Percent Loophole

For foreign entrepreneurs running digital agencies, consulting firms, or software development companies from Mexico, the tax code offers a massive advantage regarding exported services. If your Mexican corporation provides a service to a client located entirely outside of Mexico, and that service is consumed and utilized outside of the country, the transaction is subject to a zero percent tax rate.

This means you do not add the sixteen percent surcharge to the invoices you send to your clients in the United States, Canada, or Europe. Because you are still paying the sixteen percent input tax on your local business expenses (like internet, rent, and local contractors) but collecting zero output tax, export-heavy businesses perpetually run a positive tax balance, which they must aggressively manage with their accountants.

However, proving to the tax authority that a service was genuinely exported is difficult. The government requires extensive documentation, including foreign banking transfer receipts, international IP address logs, and contracts explicitly stating where the deliverable will be used. If you are operating a remote agency and need to understand the immigration implications of cross-border service models, consult Digital Nomads in Mexico: Visa Options for Remote Workers in 2027.

Frequently Asked Question: What if my foreign client has a branch office in Mexico? If the service you provide benefits their local Mexican branch in any way, the transaction is no longer considered an export, and you must charge the full sixteen percent tax.

The Relentless Monthly Declarations

The administrative burden of managing this tax system is staggering. Beyond the cash remittance, you are required to file a highly detailed monthly report known as the Declaración Informativa de Operaciones con Terceros. This report forces you to break down every single vendor you paid that month, listing their exact tax identification numbers and the precise amount of tax you paid them.

The government cross-references your report with the reports filed by your vendors. If you claim you paid a vendor a thousand pesos in tax, but that vendor fails to report receiving it, the tax authority’s automated systems will flag the discrepancy instantly. This level of granular, digital surveillance means your bookkeeping must be absolutely flawless, updated daily, and reconciled perfectly with your bank statements.

Imagine a scenario where your bookkeeper takes a vacation and you miss the deadline for this informative declaration. The fine is not just monetary; the government can temporarily suspend your ability to issue new invoices until the report is filed. When communicating the urgency of these deadlines to your local staff, you cannot afford translation errors. Relying on SpanishPod101 to refine your managerial Spanish ensures you can firmly and clearly dictate compliance timelines to your administrative team.

The Ironclad Rules of Digital Invoicing

The days of writing a receipt on a piece of paper or generating a generic PDF invoice from a free online template are long gone. Mexico possesses one of the most advanced, aggressive, and highly regulated electronic invoicing systems on the planet.

What Makes a Factura Legally Binding

An official Mexican electronic invoice is called a Comprobante Fiscal Digital por Internet, and currently, all businesses must use version 4.0 of this standard. When you generate an invoice in your accounting software, the data is instantly transmitted to a government-authorized certification provider, who stamps it with a unique cryptographic seal and forwards a copy directly to the national tax database in real-time.

For an invoice to successfully stamp, it must contain incredibly specific data points. You must include the exact legal name of your client, their precise postal code as registered with the tax authority, their specific tax regime, and a mandatory code dictating the intended use of the invoice (for example, whether the purchase is for general expenses or fixed assets). If a single comma in the client’s corporate name does not match the government database, the system will reject the invoice entirely.

This means your sales team will spend a massive amount of time conducting administrative triage before they can actually bill a client. If you are hiring local sales representatives to handle this tedious process, understanding their legal protections and severance rights is crucial, which you can explore in Layoffs and Severance: What Are Workers Entitled to If Let Go in Mexico?.

The Constancia de Situacion Fiscal Nightmare

Because the invoicing system demands flawless data, you cannot rely on a client simply telling you their billing address over the phone. You must demand that they provide their Constancia de Situación Fiscal. This is an official, government-issued PDF that details their exact, current tax identity.

Chasing down these documents from every single vendor and client is the bane of Mexican corporate existence. When you sign a new B2B client, the onboarding process is halted until their accounting department emails you this specific document. Conversely, every time you buy a piece of equipment for your office, you must hand your company’s document to the cashier so they can generate your valid expense invoice.

Imagine trying to close a massive consulting deal, only for the client’s payment to be delayed by three weeks because their internal accounting team refuses to release their updated tax document to your sales staff. Knowing how to politely but firmly escalate these administrative requests in professional Spanish is a daily requirement. Utilizing the business communication tracks on SpanishPod101 will teach you the culturally appropriate phrasing to demand these documents without damaging fragile new client relationships.

Penalties for Digital Invoicing Failures

The tax authority uses this digital invoicing grid as its primary weapon for enforcement. If their algorithms detect irregularities in your invoicing patterns—such as issuing invoices for massive amounts without corresponding payroll or inventory expenses, or failing to file your monthly declarations on time—they do not send a polite warning letter. They deploy their nuclear option: the cancellation of your digital seal certificates.

Without an active digital seal, your accounting software is physically blocked from stamping new invoices. Your business is instantly paralyzed. You cannot bill clients, you cannot collect revenue, and you cannot legally document your sales. This suspension happens overnight and without a trial.

Frequently Asked Question: How do I get my digital seals reinstated if they are suspended? You must immediately file a clarification case through the digital tax portal, providing exhaustive proof that the irregularity was an administrative error and paying any outstanding fines. This process can take weeks, during which your company bleeds cash.

Payroll Taxes and Employer Withholding Obligations

If you scale your business and begin hiring local Mexican talent, you transition from being just a corporate taxpayer to being a highly regulated tax withholding agent for the state. The payroll tax burden here is heavy, and the calculations are unforgiving.

Withholding Income Tax for Your Local Employees

When you agree to pay a Mexican employee a gross salary, you are legally obligated to withhold their personal income tax from their bi-weekly paycheck and remit it directly to the federal government. The brackets for personal income tax are progressive, reaching up to thirty-five percent for high earners.

Furthermore, you are responsible for calculating and withholding the employee’s portion of their social security contributions, while simultaneously paying the much larger employer portion to the national healthcare and housing funds. The formula for calculating these withholdings must include not just their base salary, but the prorated value of their mandatory Christmas bonuses, vacation premiums, and any recurring performance bonuses.

Imagine negotiating a salary with a highly skilled software engineer. If you promise them fifty thousand pesos a month, but fail to specify whether that is gross or net, you will face a massive dispute when their first paycheck arrives thousands of pesos short due to your mandatory withholdings. If your employees decide to organize to dispute these calculations, you need to understand your legal standing by reading Are Foreigners in Mexico Part of Labor Unions or Collective Bargaining?.

Navigating State Payroll Taxes

While corporate income tax is strictly federal, payroll taxes are levied at the state level. The Impuesto Sobre Nómina is a tax charged to the employer for the privilege of creating jobs within a specific state’s jurisdiction.

The rate varies wildly depending on where your office is located and where your employees actually perform their work. Most states charge between two and three percent of your total gross payroll. If your corporate headquarters is in Mexico City, but you have remote employees legally residing and working in Jalisco and Nuevo León, you must register with the state tax authorities in all three jurisdictions and file three separate monthly state tax returns.

Frequently Asked Question: Are any payments exempt from the state payroll tax? Yes, certain indemnities, severance payouts, and specific savings fund contributions are sometimes exempt, but the definitions vary by state law. Accurately tracking these state-by-state discrepancies requires a dedicated local HR team.

The Mandatory Profit Sharing Requirement

One of the most unique and legally absolute tax obligations in Mexico is the Participación de los Trabajadores en las Utilidades, universally known as PTU. The Mexican Constitution mandates that corporations must distribute exactly ten percent of their annual pre-tax profits back to their employees.

This is not a discretionary performance bonus; it is a hard legal requirement. The distribution occurs in May of each year, based on the profits generated in the previous calendar year. The ten percent pool is divided among the employees based on a strict formula: half is distributed according to the number of days each employee worked during the year, and the other half is distributed based on their base salary level.

Imagine having an incredibly profitable year that relied heavily on automated software rather than human labor. You are still legally forced to distribute ten percent of those massive profits to your small administrative team in May, which can severely impact your planned reinvestment capital. Discussing these mandatory payouts and capping limits with your staff requires supreme tact and absolute linguistic clarity. You cannot rely on a translation app during a tense HR meeting. Consistently practicing advanced conversational dynamics with SpanishPod101 ensures you can explain the company’s financial position to your employees respectfully and legally.

Managing Cross Border Transactions and Withholdings

Foreign entrepreneurs rarely keep all their money inside Mexico. Eventually, you will need to repatriate profits to your home country, pay foreign parent companies for licensing, or hire international contractors. Every time money crosses the Mexican border, the tax authority demands a toll.

Repatriating Profits and Dividend Surtaxes

When your Mexican corporation generates a profit, you pay the thirty percent corporate income tax. However, when you decide to distribute the remaining after-tax profits to yourself or your foreign shareholders as a dividend, the government applies an additional ten percent withholding tax on that dividend payment.

To manage this, your accountant must meticulously maintain a highly specific ledger known as the Cuenta de Utilidad Fiscal Neta. This account tracks profits that have already been subject to the thirty percent corporate tax. If you attempt to pay a dividend out of funds that have not been properly processed through this account, the corporation will be hit with a massive punitive tax rate before the dividend can even be distributed.

Frequently Asked Question: Can I just pay myself a massive consulting fee instead of taking dividends? While you can invoice your Mexican company from your foreign entity, the Mexican tax authority aggressively scrutinizes cross-border related-party transactions to prevent profit shifting. These fees must be strictly justified by transfer pricing studies.

Paying Foreign Contractors from Mexico

If your Mexican corporation hires a graphic designer in London or a marketing agency in New York, the invoice you receive from them will not have a Mexican tax ID. When you pay that foreign invoice, Mexican tax law dictates that you must withhold a percentage of that payment and remit it to the local government, because the foreign entity is generating wealth from a Mexican source.

If there is no tax treaty in place, these withholding rates are brutal. Depending on the nature of the service, you could be forced to withhold twenty-five to thirty-five percent of the gross invoice amount. This means if the US agency bills you ten thousand dollars, you only send them seven thousand, and you hand three thousand to the Mexican government. Naturally, the foreign agency will refuse to accept a thirty percent pay cut, forcing your Mexican company to “gross up” the invoice and absorb the tax cost entirely, destroying your operating budget.

The Impact of Double Taxation Treaties

To survive these withholding taxes, you must aggressively leverage Mexico’s extensive network of double taxation treaties. Mexico holds treaties with dozens of nations, including the United States, Canada, and most of the European Union.

When you apply the provisions of a tax treaty, the punitive thirty-five percent withholding rate on foreign services, royalties, or interest payments can often be reduced to ten percent, or in cases of standard business profits, eliminated entirely. However, you cannot just claim the treaty rate automatically. You must obtain an official certificate of tax residency from the foreign contractor’s home government (such as an IRS Form 6166 for US vendors) before you authorize the payment.

Imagine delaying a critical software launch because you cannot legally pay your foreign developers until they navigate their own government’s bureaucracy to prove their tax residency. Understanding how international regulations overlap with local laws is complex. For a comparison of how different international policies affect expats locally, read Language Barrier at Work: How to Integrate If Your Spanish Is Limited to understand the communication hurdles of managing global teams from a Mexican headquarters.

Surviving Audits Accountants and Compliance

You cannot automate Mexican corporate compliance, and you absolutely cannot do it yourself. The system is designed to be highly complex, heavily punitive, and constantly changing. Your survival depends entirely on the professionals you hire and your ability to manage them.

Why a Bilingual Local Accountant is Non Negotiable

Attempting to file your own monthly corporate tax declarations using Google Translate on the federal tax portal is corporate suicide. You must hire a certified local accountant, known as a contador, who specializes in foreign-owned entities.

The cost of a premium bilingual accountant is significant, but it is a fraction of the cost of the fines you will incur for missing a single monthly VAT declaration or miscalculating a profit sharing payout. Your accountant is the shield between your operating capital and the government’s aggressive automated auditing algorithms. They will handle the electronic invoicing portals, calculate your payroll withholdings, and maintain your mandatory electronic accounting ledgers.

However, you cannot just hand over your bank access and look away. You must hold your accountant accountable. If you are struggling to build a network to find these trusted professionals, utilizing the same strategies discussed in Choosing Private Health Insurance: Local Mexican Plans vs International Coverage regarding vetting local service providers is highly applicable to the financial sector.

Dealing with the Digital Tax Mailbox

The tax authority does not send letters in the mail, nor do they call you on the phone. All official communication, audit notices, and fine notifications are delivered electronically to your Buzón Tributario, your secure digital tax mailbox.

Activating and monitoring this mailbox is a strict legal requirement. When the government sends a notification to your Buzón, you have exactly three days to open it. If you do not open the message within three days, the government legally considers you officially notified on the fourth day, and the deadline to respond or pay the fine begins ticking immediately, whether you read the document or not.

Imagine going on a week-long vacation, ignoring an email alert about a new message in your Buzón, and returning to find your corporate bank accounts frozen because you missed a 48-hour window to clarify a digital invoicing discrepancy. Monitoring this inbox is a high-stress daily task.

Communicating Financial Concepts Clearly

The greatest risk to your business is not the tax rate itself; it is the language barrier separating you from your financial obligations. When your accountant sends you an urgent email explaining a discrepancy in your monthly VAT deductions, a slight mistranslation can lead you to approve a disastrous financial decision.

Accounting Spanish is highly technical, utilizing terms that do not translate directly into standard US or UK accounting principles. You cannot rely on passive understanding when dealing with the federal government. You must actively study the language of your new market. Making SpanishPod101 a mandatory part of your daily executive routine ensures you bridge the gap between conversational fluency and boardroom financial literacy. When you can sit across from your local accountant and confidently debate the depreciation schedule of your new assets in their native language, you cease being a vulnerable foreigner and become a formidable corporate director in the Mexican market.

Feature	Persona Física (Sole Proprietor)	Persona Moral (Corporation)
Income Tax (ISR) Rate	Progressive, ranging from 1.92% up to 35%	Flat 30% on all taxable corporate profits
Value Added Tax (IVA)	Subject to 16% standard rate; files monthly	Subject to 16% standard rate; files monthly
Legal Liability	Personal assets are fully exposed to business debts	Personal assets are shielded; liability limited to the entity
Profit Sharing (PTU)	Mandatory 10% distribution if employing staff	Mandatory 10% distribution of pre-tax profits in May
Dividend Taxation	N/A (Profits are taxed as personal income)	Additional 10% withholding tax when dividends are distributed

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References

Primary sources (official)

• Tax Foundation – Corporate Tax Rates Around the World: https://taxfoundation.org/data/all/global/corporate-tax-rates-by-country-2024/

Other helpful sources

• PwC Worldwide Tax Summaries – Mexico Corporate Income Tax: https://taxsummaries.pwc.com/mexico/corporate/taxes-on-corporate-income

Disclaimer

The information provided in this guide is for educational and informational purposes only and does not constitute formal legal, financial, accounting, or tax advice. Mexican corporate tax laws, including ISR, IVA, digital invoicing (CFDI) regulations, and SAT compliance requirements, are highly complex and subject to frequent legislative changes. Always consult with a certified, independent Mexican accountant and a qualified corporate attorney prior to incorporating an entity, issuing invoices, or filing tax declarations in Mexico.