The tax regime determines the tax obligations, rates, and benefits to which a taxpayer is entitled in Mexico. Choosing the right regime is essential for complying with the SAT, optimizing tax burden, and maintaining an accurate Tax Status Certificate.
What Is the Tax Regime?
The tax regime is the category under which a taxpayer registers with the SAT to determine how they will calculate and pay their taxes. Mexico offers different regimes for both individuals and legal entities, each with its own rules, income limits, and obligations.
The tax regime appears on the Tax Status Certificate and must match exactly with the recipient's data on every CFDI issued, per CFDI 4.0 rules.
Regimes for Individuals
### RESICO (Simplified Trust Regime)
Income limit: Up to $3,500,000 MXN annually
ISR rate: 1% to 2.5% on invoiced income
Ideal for: Independent professionals, small merchants, freelancers
Advantages: Very low rates, simplified calculation, SAT pre-filled returns
Key requirement: Must be current with tax obligations; a negative Tax Compliance Opinion can trigger removal from the regime
### Business and Professional Activities
No income limit
ISR rate: Progressive table (up to 35%)
Ideal for: Professionals, consultants, and entrepreneurs with higher income
Allows: Deducting activity-related expenses
### Technology Platforms
For: App drivers, marketplace sellers, content creators
Withholding: Platforms withhold ISR and VAT directly
Advantage: Extreme simplification; the platform handles withholdings
### Rental Income
For: Individuals renting real estate
Allows: 35% blind deduction or documented deductions
Obligation: Issue CFDI for each rent collected
Regimes for Legal Entities
### General Law Regime
For: Commercial entities (SA, S de RL, SAPI, etc.)
ISR rate: 30% on fiscal profit
Allows: Authorized deductions, VAT crediting, provisional payments
### RESICO for Legal Entities
Limit: Annual income up to $35,000,000 MXN
Advantage: Income accrual at time of collection (cash flow basis)
Requirement: All partners must be individuals
### Non-Profit
For: Civil associations, foundations, educational institutions
Benefit: ISR exemption under certain conditions
Obligation: No distribution of surpluses to associates
How to Choose the Right Regime
The choice depends on several factors:
Type of taxpayer: Are you an individual or legal entity?
Income level: Do you exceed RESICO limits?
Type of activity: Do you provide services, sell products, rent property?
Expense structure: Do you have many deductible expenses or few?
Growth projection: Do you expect to grow beyond your current regime's limits?
How to Change Your Tax Regime
Log into the SAT portal with your e.firma or password
Go to "RFC Procedures" > "RFC Update"
Modify your tax regime and obligations
Download your new Tax Status Certificate
Notify your clients and suppliers for correct CFDI issuance
Tax Regime Impact on Credit Analysis
The tax regime provides valuable information for risk assessment:
RESICO indicates limited income but high fiscal compliance likelihood
General Regime suggests more complex operations with greater borrowing capacity
Multiple regimes may indicate diversification of economic activities
Frequent regime changes can signal operational instability
At CRiskCo, we analyze the tax regime as an integral part of credit assessment. This information, combined with RFC validation, the Tax Compliance Opinion, and invoicing data, allows us to build a complete risk profile of any Mexican company.
Want to assess the credit risk of Mexican companies with real-time tax data? [Discover our solutions](/solutions/credit-risk).