For transfer pricing and transfer pricing documentation related penalties, see Sec. 13.4.

Late Tax Return

Failure to file a tax return or other required documents by the deadline will result in fines ranging from MXN 1,810 to MXN 44,790. Failure to file electronically when required to do so will result in fines ranging from MXN 18,360 to MXN 36,740.

Late Tax Payment

Late tax payments are subject to interest for each month or part of a month the tax remains unpaid based on rates set by the Mexican Congress.

If deferral of payment is granted by the tax authorities, interest equal to the monthly bank deposit rate applies.

Filing of an Incorrect Return

When an incorrect tax return is filed resulting in underpaid tax, a fine equal to 55% to 75% of the underpaid tax is imposed. A penalty of 30% to 40% applies on the amount which exceeds reported fiscal losses over the real losses.

In the case of tax fraud, additional penalties may be imposed including imprisonment of 3 months up to 6 years.

Reduced Tax Penalties

Effective 21 September 2022, a potential reduction of penalties is available for taxpayers unless:

The taxpayer has not submitted the annual income tax return corresponding to the last fiscal year or, as the case may be, the corresponding complementary returns, if they are required to do so; or
The taxpayer fails to comply with the obligation that gave rise to the imposition of the penalty.

Where a taxpayer is subject to an audit and chooses to self-correct, they may request a reduction in penalties from the moment the audit is initiated and before the deadline for the conclusion of the audit/issuance of a notice of tax deficiency. In this case, a reduction in penalties is provided as follows:

A 100% penalty reduction if the taxes owed are paid in full within the term granted; or
If it is agreed to defer the payment or pay in installments:

a 90% penalty reduction for penalties in relation to the taxpayer's own taxes; and
a 70% penalty reduction for penalties in relation to taxes withheld or transferred.

Otherwise, penalties determined by the tax authorities may be reduced depending on the amount of time that has elapsed from the time the notification of a penalty was issued until an application for a reduction is made.

With respect to the filing of returns, a 100% reduction in penalties may be granted if the taxpayer complies with the filing obligation before being notified of the breach of obligation. A 100% reduction is also provided if the taxpayer complies with the filling obligation after being notified but before administrative enforcement proceedings have been initiated. Otherwise, penalties may be reduced depending on the amount of time that has elapsed, as long as the filing obligation is complied with.

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