Accounting in Mexico: standards, taxes and GoSoft
Accounting guide for Mexico: Tax Administration Service (SAT), IVA 16 %, accounting framework, books, e-invoicing, tax returns and how to set up GoSoft.
Key facts
| Item | Detail |
|---|---|
| Tax authority | Tax Administration Service (SAT) |
| Currency | MXN · Mexican peso |
| Tax ID | RFC |
| Consumption tax | IVA · 16 % |
| Income tax | Corporate income tax (ISR): 30 % on taxable profit. |
| Fiscal year | Calendar year (January 1 to December 31). |
| E-invoicing | CFDI 4.0 (digital tax receipt), stamped by an authorized provider (PAC). |
Accounting framework
Financial Reporting Standards (NIF) issued by CINIF; securities issuers apply IFRS.
Chart of accounts
Free chart, but each account is mapped to the SAT grouping code to file electronic accounting.
Financial statements
In Mexico the four statements are presented with these names (GoSoft uses them in its reports and PDFs):
- Statement of financial position
- Statement of comprehensive income
- Statement of changes in stockholders' equity
- Statement of cash flows
Mandatory books and records
Electronic accounting: chart of accounts with grouping code and monthly trial balance in XML; journal entries upon SAT request.
Periodic tax returns
Monthly provisional ISR and VAT payments, DIOT (third-party transactions) and the annual return.
What you need to know
- General VAT 16 %; 8 % in the border region with tax incentive; 0 % on basic food and medicine.
- Companies withhold ISR and VAT on fees and rent paid to individuals; RESICO has its own withholding.
- Without a valid CFDI there is no deduction or VAT credit.
Taxes and withholdings in GoSoft
These are the reference taxes and withholdings GoSoft loads for Mexico. You adjust them in Taxes and withholdings (rate, minimum base and ledger account).
| Code | Name | Type | Applies to | Rate |
|---|---|---|---|---|
IVA16 | VAT 16% | VAT | sales and purchases | 16 % |
IVA8 | VAT (border region) 8% | VAT | sales and purchases | 8 % |
RET-ISR-HON | ISR withholding · fees and rent (individuals) | Income | payments to suppliers (withholding) | 10 % |
RET-ISR-RESICO | ISR withholding · RESICO | Income | payments to suppliers (withholding) | 1.25 % |
RET-IVA | VAT withholding (two thirds) | VAT | payments to suppliers (withholding) | 66.6667 % |
How to set up GoSoft for Mexico
In My company, choose the country Mexico and the currency MXN.
When you log in again, GoSoft shows Updating the accounting setup for Mexico: it codes the chart of accounts, loads the country's taxes and checks the settings. It happens only once.
In Chart of accounts → Options, review the coding and download the chart as a PDF for your accountant to approve.
In Financial reports → Taxes and withholdings, confirm the rates and choose the ledger account for each tax.
Record activity (manually or from the modules) and use Tax returns to prepare each period's drafts.
Rates and deadlines change. Before filing, confirm what is current at Tax Administration Service (SAT) and with your accountant.