Mexico -- Cryptocurrency Tax Framework Regulatory Overview

Cryptocurrencies are classified as movable property (virtual assets) under Mexican tax law, subject to income tax (ISR) on gains from disposals, mining rewards, staking, or airdrops, with no separate capital gains rate—individuals face progressive rates up to 35%, and corporations pay a flat 30%.[1][2][3][4]

Income Tax (ISR) Treatment

Cryptocurrency transactions trigger ISR as ordinary income for residents on worldwide basis; taxable events include sales, swaps, spending, mining (fair market value at receipt), staking, and airdrops, recognized on accrual/transaction date.[1][2][3][4][6][7]

• Individuals: Progressive rates from 1.92% to 35% on net gains (disposal proceeds minus inflation-adjusted acquisition cost, using FIFO, identified cost, or average cost methods); no loss deductions allowed; annual exemption on movable property gains up to MXN 1,829,811.95 (~USD 90,000–100,000, varying by source and year).[1][2][3]
• Corporations: Flat 30% rate on all income, including crypto; monthly advance payments based on profit quotient; accrual basis recognition.[1][4][5]
• Advance payments: Individuals withhold 20% on gross amounts over MXN 4,623,324.86; corporations follow general monthly rules.[3] No specific crypto distinction from general movable property rules; cost basis requires compliant invoices, often challenging for crypto.[1][4][7]

VAT/GST Treatment

16% VAT applies to crypto transactions in Mexico (e.g., sales of intangible assets where seller and transaction occur domestically); mining/staking rewards and related services may trigger VAT obligations.[2][3][4]

Reporting Requirements

• Individuals: Report gains on annual tax return (Declaración Anual, due April) via Schedule 5 (capital gains) or Schedule 1 (mining/staking); retain records 5 years; track worldwide income.[1][2][3][7]
• Businesses/Corporations: Monthly ISR advance payments; separate declarations if transactions exceed MXN 50,000 (~USD 2,700) per Fintech Law; accrual accounting; expense deductions (e.g., mining electricity) require documentation.[2][4][5] SAT (Servicio de Administración Tributaria, Mexican tax authority) uses advanced tracking; no PEPS-specific crypto rules, but general inflation indexing applies.[2][3][5]

Crypto-Specific Legislation

No dedicated crypto tax law; treated under general Income Tax Law (LISR/ISR) and Value Added Tax Law (LIVA) as movable property.[1][3][4][6][7] Prodecon (Taxpayer’s Ombudsman) issued non-binding 2021 study on crypto regime; Fintech Law (since 2019) mandates extra reporting for exchanges over thresholds; CARF (Financial Intelligence Secretariat) developing unified framework.[4][5] Consult SAT directly for latest guidance.

Note: Exemption thresholds and rates may adjust annually for inflation; values here reflect recent sources up to 2026. Professional advice recommended due to evolving enforcement.[1][2][3]