El Economista: Large Taxpayers Account for 34% of Tax Debts in Mexico

Large taxpayers account for 34 of every 100 pesos owed to Mexico's tax authority. According to the Ministry of Finance and Public Credit (SHCP) report on public finances and debt for the first half of the year, total outstanding tax debts amount to 3.207 trillion pesos and 34% of that balance belongs to taxpayers with annual revenue of 1.125 billion pesos or more.

As of July, this segment's debt totaled 1.111 trillion pesos and 99% of the balance corresponds to companies. This group could access a program in 2027 to settle their debts without paying penalties if the Senate approves the change made by the Chamber of Deputies.

A regularization program with no income cap

During the debate on the 2027 Federal Revenue Law (LIF) lawmakers amended the tax regularization program proposed by the federal government. The original bill limited the incentive to taxpayers with 2025 revenue of up to 300 million pesos, but that cap was removed.

As a result, if approved by the Senate, large taxpayers could also get current next year. A tax debt, or tax assessment arises when a taxpayer fails to pay their taxes and can grow with penalties, surcharges and other charges until it is settled.

An opportunity for taxpayers in litigation

In an interview with El Economista, Baker Tilly Mexico Managing Partner of Legal José Luis Elizondo described the amendment as a good opportunity for many taxpayers, especially those involved in tax litigation that can be costly and lengthy.

"These are disputes that take three or four years on average. The number of taxpayers who access the benefit will definitely translate into higher revenue," he said.

Higher revenue expected for 2027

For next year, the Ministry of Finance expects record tax revenue equal to 15.9% of GDP with estimated economic growth of 2%. The 2027 LIF projects revenue of 10.63 trillion pesos of which 6.2 trillion would come from taxes.

For reference, this year's regularization program had already generated 275.657 billion pesos for the treasury as of July, according to Ministry of Finance data.

At Baker Tilly, we help companies assess their tax assessments and make informed decisions on whether to settle or continue their defense before the authority.

Article originally published in El Economista, by Belén Saldívar.