Tax Advisor in Mexico for Foreign-Owned Companies

ISR is the federal corporate income tax — currently 30% on Mexican-source taxable income, paid via monthly provisional payments and an annual return. IVA is the federal value-added tax — currently 16% on most goods and services, charged on sales, credited against IVA paid on purchases, and reconciled monthly. They’re separate filings, separate accounts, and separate audit risks.

PE risk depends on your activities in Mexico — sales agents authorized to bind contracts, fixed places of business, prolonged service delivery, and similar factors under Article 5 of the US-Mexico treaty. We run a structured PE review against your actual business model, document the conclusion, and adjust intercompany arrangements where needed to keep the parent outside the Mexican tax base.

Tax compliance is usually bundled with monthly accounting in a flat fee scaled to entity size and complexity. Standalone tax advisory work — transfer pricing studies, PE reviews, treaty analysis, audit defense — is quoted per project. You’ll see the full scope before any work starts.

Yes, regularly. We work alongside your US CPA, tax counsel, or Big 4 team, deliver memos and workpapers in English, and join joint calls on cross-border positions. We’re the Mexican-side specialist; we don’t replace your US advisor.

If your Mexican entity has any cross-border transactions with related parties — service fees, royalties, intercompany loans, cost recharges — Mexican law requires contemporaneous transfer pricing documentation. Without it, SAT can recharacterize the transaction and reassess the tax. We prepare the local file and coordinate with your group’s master file.

We handle the audit end-to-end — preparing the documentation, responding to SAT requests, attending meetings, and negotiating where appropriate. Because our team also runs your accounting and books, the supporting documentation is already in order.