The 2027 Economic Package does not contemplate new general taxes, but it does include measures that could modify companies’ effective tax burden . The changes would affect deduction periods, withholding taxes, and control obligations, particularly for corporations and multinational companies.
Among the proposals is a mechanism aimed at legal entities resident in Mexico with revenues exceeding 50 million pesos . Its purpose is to establish a minimum tax base by limiting authorized deductions and tax losses.
Control of deductions and tax losses
According to Baker Tilly Mexico, one of the main changes is the proposed addition of a new Chapter X to Title II of the Income Tax Law (LISR) , entitled “Mechanism for the Control of Authorized Deductions and Tax Losses.”
In practical terms, the measure would limit the possibility of generating or applying tax losses beginning in fiscal year 2027 . This could change the way companies covered by the mechanism determine their tax burden.
The tax changes proposed by the Executive Branch will be a key part of the discussion in Congress, meaning their final scope will depend on the outcome of the legislative process.
Advance payments for services and leases
Another aspect of the initiative concerns deductions for advance payments for services and leases . Baker Tilly Mexico considers it appropriate to distinguish these transactions from those involving suppliers that sell goods.
For acquisitions of goods, inventories, or assets, deductions must be analyzed according to the applicable rules governing cost of goods sold , investments, or the corresponding deduction in each case.
Implications for companies
Although the proposals do not create new general taxes, their effects could be reflected in companies’ deductions, tax losses, and control obligations. Corporations, multinational companies, and legal entities covered by the new mechanism should therefore closely follow the discussion of the proposed tax changes.
At Baker Tilly, we support companies in analyzing tax changes and their potential implications, as well as reviewing their compliance processes in light of the changes contemplated for fiscal year 2027 .
Article originally published in El Universal, by Leonor Flores.
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