Economic Package and Tax Reform 2026

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On November 7, 2025, the Official Gazette of the Federation (DOF) published the 2026 Federal Revenue Law (LIF) and the reforms to the Federal Tax Code (CFF) and the Special Tax on Production and Services Law (IEPS).

This package is governed by the General Criteria for Economic Policy (CGPE), which project a 2026 of "economic consolidation" under prudent fiscal management.

I. Macroeconomic Framework and General Context

The 2026 CGPE anticipates that economic growth will be driven by the strength of the domestic market (derived from the wage bill), a more stable international environment, and the continuity of the "Plan México" industrial strategy.

Key economic variables reflect caution and stability:

  • Real GDP: Moderate growth is projected between 1.8% and 2.8%.
  • Inflation: Convergence to the 3.0% target is expected.
  • Exchange Rate: The peso is expected to appreciate, closing at $18.9 MXN/USD.
  • Interest Rate (Banxico): A decrease of 125 basis points is projected, placing it at 6.0%.

II. Revenue and Financing Strategy

 The 2026 Federal Revenue Law (LIF) projects total revenue of $10.19 trillion pesos, representing a 9.59% increase compared to 2025, without resorting to increases in general tax rates.

  • Tax Revenue: Growth is based on the inertial collection of Income Tax (ISR) and Value Added Tax (IVA), and the significant projected increase in Foreign Trade Taxes (+67.84%), which underscores the focus on customs control.
  • Financing: To cover expenses, an increase in debt ceilings is authorized, with Net Domestic Debt reaching up to $1.78 trillion pesos.

III. Highest Impact Tax Aspects and Changes

 The modifications focus on tax control, penalties for late payments, and the provision of temporary programs to recover debts and principal.

  1. Increased Cost of Compliance (Federal Tax Code and Federal Revenue Law)
  • Surcharges (Federal Tax Code): The General Monthly Late Payment Rate is increased to 2.07% (from 1.47%), making tax debt significantly more costly and discouraging late payments.
  • Withholding of Interest (Federal Revenue Law): The provisional withholding of income tax on interest in the financial system increases considerably from 0.50% to 0.90%.
  1. Regularization and Capital Programs
  • Tax Credit Forgiveness: A limited tax amnesty is offered to SMEs (with revenues under MXN $300 million) that pay off the principal of their debts before the end of 2026, obtaining total exemption from fines and surcharges.
  • Capital Repatriation: The scheme granting a preferential 15% income tax rate to capital repatriated to the country and invested in productive projects for at least three years is reintroduced.
  1. Tax Audits and Other Benefits
  • Taxpayer Identification Code (RFC) Control: The grounds for restricting the Digital Seal Certificate (CSD) are strengthened, and the authority to deny the Taxpayer Identification Number (RFC) to those linked to the issuance of fraudulent invoices (EFOS) is granted.
  • FIFA 2026 Benefit: A full tax exemption is granted to individuals and entities involved in organizing the World Cup.

In summary: The 2026 Reform is a financial management tool that seeks fiscal soundness through tax collection discipline, increasing the financial consequences of non-compliance and incentivizing regularization and domestic investment through temporary and targeted programs.

Source:

https://www.dof.gob.mx/nota_detalle.php?codigo=5772357&fecha=07/11/2025#gsc.tab=0