In recent days, key modifications have been approved to the Mexico City Fiscal Code, affecting the calculation of the Real Estate Acquisition Tax (ISAI), compliance with the property tax, and the Payroll Tax (ISN). The most relevant aspects are detailed below.
In recent days, key modifications have been approved to the Mexico City Fiscal Code, affecting the calculation of the Real Estate Acquisition Tax (ISAI), compliance with the property tax, and the Payroll Tax (ISN). The most relevant aspects are detailed below:
1. Modification in the calculation of the Real Estate Acquisition Tax (ISAI) Article 113 of the Fiscal Code was reformed with the purpose of ensuring a more equitable tax system. The current table for calculating the ISAI presented rates that, in certain cases, were regressive, as they did not adequately reflect the economic capacity of real estate acquirers. With this reform, a progressive structure is implemented in which the ISAI rates are adjusted proportionally to the value of the acquired property. This ensures that taxpayers with greater economic capacity bear a higher tax burden, while those with fewer resources are taxed more moderately. The measure seeks to correct inequities and strengthen the principles of tax justice and proportionality.
2. New informative declaration obligation on property tax Article 132 of the Fiscal Code introduces a new obligation for owners of certain properties subject to property tax. Taxpayers must submit an informative declaration to the Secretariat of Administration and Finance detailing the occupancy status of properties intended for residential use. This obligation applies exclusively to properties classified in ranges L, M, N, O, and P, corresponding to cadastral values equal to or greater than $4,524,974.08, according to the rate of article 130, section I of the Fiscal Code. The measure seeks to increase transparency and ensure that property tax payments accurately reflect the use and occupancy of the properties.
3. Increase in the Payroll Tax (ISN) rate Article 158 of the Fiscal Code establishes an increase in the ISN rate, from 3% to 4%. The additional resources generated by this increase will be allocated to a special fund for urban infrastructure and mobility, addressing priority needs in these areas.
However, to avoid affecting small taxpayers, tax benefits were incorporated in the twenty-eighth transitory article:
• Microenterprises will pay an effective rate of 3% (a reduction of 1% compared to the new rate).
• Small businesses will pay an effective rate of 3.5% (a reduction of 0.5% compared to the new rate).
These provisions reflect a balanced approach that promotes the economic development of small and medium-sized enterprises, while seeking resources for strategic projects in Mexico City.
