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 annuallyISR rate: 1% to 2.5% on invoiced incomeIdeal for: Independent professionals, small merchants, freelancersAdvantages: Very low rates, simplified calculation, SAT pre-filled returnsKey requirement: Must be current with tax obligations; a negative Tax Compliance Opinion can trigger removal from the regime### Business and Professional Activities
No income limitISR rate: Progressive table (up to 35%)Ideal for: Professionals, consultants, and entrepreneurs with higher incomeAllows: Deducting activity-related expenses### Technology Platforms
For: App drivers, marketplace sellers, content creatorsWithholding: Platforms withhold ISR and VAT directlyAdvantage: Extreme simplification; the platform handles withholdings### Rental Income
For: Individuals renting real estateAllows: 35% blind deduction or documented deductionsObligation: Issue CFDI for each rent collectedRegimes for Legal Entities
### General Law Regime
For: Commercial entities (SA, S de RL, SAPI, etc.)ISR rate: 30% on fiscal profitAllows: Authorized deductions, VAT crediting, provisional payments### RESICO for Legal Entities
Limit: Annual income up to $35,000,000 MXNAdvantage: Income accrual at time of collection (cash flow basis)Requirement: All partners must be individuals### Non-Profit
For: Civil associations, foundations, educational institutionsBenefit: ISR exemption under certain conditionsObligation: No distribution of surpluses to associatesHow 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 passwordGo to "RFC Procedures" > "RFC Update"Modify your tax regime and obligationsDownload your new Tax Status CertificateNotify your clients and suppliers for correct CFDI issuanceTax Regime Impact on Credit Analysis
The tax regime provides valuable information for risk assessment:
RESICO indicates limited income but high fiscal compliance likelihoodGeneral Regime suggests more complex operations with greater borrowing capacityMultiple regimes may indicate diversification of economic activitiesFrequent regime changes can signal operational instabilityAt 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).