- Mexico's Sheinbaum administration faces legislative and policy challenges
- Opposition seeks to prevent Sheinbaum's legislative majority in the Chamber of Deputies.
Mexico Passes 2027 Income Tax Law, Capping Deductions for US Subsidiaries
What happened
The Chamber of Deputies voted 349 to 92 on November 3, 2026, to finalize the 2027 income tax law. The law limits deductions and past tax-loss use for companies. For US companies operating in Mexico, the law caps deductions and tax-loss write-offs once income exceeds 50 million pesos, which is approximately US$2.7 million.
From riotimesonline.com
Why it matters
The new legislation goes to the president for publication and is set to apply starting January 1, 2027. The law includes specific exemptions for vehicle makers and fuel retailers, which were added by the Senate. Because Mexico is a major US trading partner, these tax changes may affect numerous American supply chains.
Opposition groups are seeking to prevent Claudia Sheinbaum's legislative majority in the Chamber of Deputies.
From riotimesonline.com
Who's involved
- Chamber of DeputiesMexico's lower house, which voted to finalize the 2027 income tax law.
- Claudia SheinbaumLeader of the government in Mexico, whose legislative majority relies on the Chamber of Deputies.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Italian ParliamentSpeculative
Auto-parts makers, freight firms, and gas distributors could face increased costs or reduced revenue if they are not covered by the specific tax exemptions.
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The entities involved
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Chamber of Deputies
lower house of the parliament of Mexico