15 Apr New Tax on Pollutant Gas Emissions in Mexico City
As of January 1, 2025, Mexico City has implemented the Ecological Tax on Pollutant Gas Emissions into the Atmosphere, commonly referred to as the "Green Tax." This levy targets companies operating fixed sources that emit gases such as carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O). The initial mandatory payment is due by April 17, 2025.
Who is subject to this tax?
The tax applies to individuals and legal entities that operate fixed sources within Mexico City, emitting one metric ton or more of CO₂ equivalent per month. A “gas emitting fixed source” is deemed as any facility permanently located in a specific place, used for industrial, commercial, service, or any other activities that emit pollutants into the atmosphere.
How is the tax calculated?
The taxable base is determined by summing the emissions of CO₂, CH₄, and N₂O, converted to metric tons of CO₂ equivalent using internationally recognized conversion factors. The applicable tax rate is $58.00 MXN per metric ton of CO₂ equivalent.
Declarations and payments
- Monthly declarations: Must be submitted by the 17th day of the month following the month in which the tax was incurred.
- Annual declaration: To be filed during July of the subsequent fiscal year.
- First mandatory payment: Due no later than April 17, 2025, covering the emissions for January, February, and March 2025.
Recommended actions:
- Assess obligations: Determine if your company is subject to the tax based on emission levels.
- Record emissions: Maintain detailed records of emissions to ensure compliance with formal obligations.
- Meet deadlines: Prepare declarations and make corresponding payments by the specified due dates.
The Green Tax represents Mexico City's effort to reduce pollutant emissions. It is crucial for companies to understand their obligations and act proactively to ensure compliance and avoid penalties.
Our team is available to advise you on the fulfillment of your environmental obligations, as well as to resolve any questions related to the determination, calculation and payment of this new tax. Likewise, in case of any questioning by the tax authorities, our team is available to design the applicable defense strategies. Should you require further information or assistance, please do not hesitate to contact the professionals at Cuesta Campos.
Contact
Berenice Soto García
bsoto@cuestacampos.com
Héctor Ceballos González
hceballos@cuestacampos.com
Héctor Manuel Avilés López
haviles@cuestacampos.com
THE ABOVE IS PROVIDED AS GENERAL INFORMATION PREPARED BY PROFESSIONALS WITH REGARD TO THE SUBJECT MATTER. THIS DOCUMENT ONLY REFERS TO THE APPLICABLE LAW IN MEXICO. WHILE EVERY EFFORT HAS BEEN MADE TO ENSURE ACCURACY, NO RESPONSIBILITY CAN BE ACCEPTED FOR ERRORS OR OMISSIONS. THE INFORMATION CONTAINED HEREIN SHOULD NOT BE RELIED ON AS LEGAL, ACCOUNTING OR PROFESSIONAL ADVICE BEING RENDERED.