15 Jan Tax Updates and Environmental Obligations in Mexico City.
On December 27, 2024, a reform and addition to the Tax Code of Mexico City were published in the Official Gazette, which now establish the following provisions:
1. Increase in the payroll tax rate (“ISN”), which rises from 3% to 4% on the total amount of expenses made for remuneration of subordinate personal labor.
2. A new ecological tax, which applies to emissions of pollutant gases such as:
a. Carbon dioxide (CO2);
b. Methane (CH4); and
c. Nitrous oxide (NāO) exceeding one ton of carbon dioxide equivalent (t CO2e) per month.
This tax establishes a fee of $58.00 pesos per ton of CO2e, which will be exclusively applied to emissions generated by fixed sources, defined as permanent facilities intended for industrial, commercial, service, or other activities that emit pollutants into the atmosphere.
The aforementioned provisions came into effect on January 1, 2025. These measures have raised concerns in the business and industrial sectors as they could potentially violate constitutional provisions of Mexico. In this sense, companies that elect to challenge the enforcement of these taxes through the filing of an amparo, will have fifteen business days following the first payment of the ISN or the new ecological tax, as applicable to file such claim.
We remain at your disposal to discuss and evaluate the pros and cons of making the payment of these taxes under the new laws or considering the contesting of the validity of these new provisions based on constitutional principles of proportionality and tax equity.
Contact
Rafael Sánchez
Jorge González
Javier Castañeda
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.