Mexico – New Tax Withholding Rules for Digital Platforms 

Regarding tax reforms, the Mexican government is treating 2026 as a very important year.  A broad range of new or updated tax policies has been introduced in the Finance Bill 2026. At this point, we will focus on tax reforms that expand existing rules governing digital platform operators. 

From January 1, 2026, operators of digital platforms will continue to expand their compliance frameworks for their responsibilities and accountabilities regarding tax collection and third-party supplies. 

Key points from the updated withholding tax regime for platform operators can be found in the following: 

• The withholding income tax rate(ISR) for natural persons will increase from 1% to 2.5% 
• A withholding income tax rate (ISR) of 4% shall be introduced for legal persons that have provided the platform operator with a valid tax registration number (RFC). If the RFC is missing, the withholding tax shall be 20%
• Digital Platform Operators, acting as intermediaries, shall continue withthe  VAT withholding regime in two different paths. When the underlying seller has provided a valid RFC, the platform shall withhold 50% of the transaction VAT; if the RFC is missing, the VAT withholding shall be 100% of the tax amount. 
• Platforms have an obligation to issue informative reports to Revenue Authorities that include all mandatory information about the underlying suppliers or service providers. 
• When the underlying supplier is a non-resident person, the platform operator is required to provide additional information (provider ID and transaction-based information) in accordance with the latest rules.
• The platform operator must also establish a direct, real-time online communication channel with the Tax Administration Service (SAT), through which SAT shall have guaranteed access to tax-related information on the platform’s underlying transactions.