Mexico
Cryptocurrency Tax Information
In Mexico, cryptocurrencies are treated as intangible assets under the Income Tax Law. Gains from crypto transactions are subject to Income Tax (ISR). Tax rates are progressive, ranging from 1.92% to 35% depending on income level.
- Gains are taxable when crypto is sold, exchanged, or used for payments.
- Exemptions apply to gains below MXN 600,000 annually for some assets, but not specifically for crypto.
- Losses can offset gains, and cost basis is FIFO or average cost.
- Staking rewards are treated as ordinary income upon receipt.
- Airdrops and forks are taxed as income at fair market value.
- Deductions allowed for related expenses like electricity for mining.
- File by April 30 each year for previous calendar year.
- Use SAT Form 1 for individuals; maintain records of transactions.
- Deadlines: Monthly for businesses, annual for individuals.
- Non-residents face 10% withholding tax on gains.
- Recent regulations require exchanges to report user data to SAT.
- Crypto is not legal tender; Banxico warns against risks.
Mexico Tightens Crypto Tax Reporting Rules
Mexico's SAT announced stricter requirements for crypto exchanges to report user transactions starting 2024. This aims to combat tax evasion in the growing digital asset market.
February 15, 2024
SAT Issues Guidelines on Crypto Income Taxation
The Mexican tax authority released new guidelines clarifying how staking and mining rewards are taxed as income. Taxpayers must report at fair market value.
November 20, 2023
Mexico Considers VAT Exemption for Crypto Trades
Lawmakers proposed exempting certain crypto transactions from VAT to boost adoption. The bill is under review in Congress.
January 10, 2024
Banxico Warns on Crypto Tax Risks
Mexico's central bank highlighted risks of non-compliance with crypto taxes amid rising investments. Emphasized accurate reporting to avoid penalties.
December 5, 2023
Crypto Capital Gains Tax Hike Discussed
Government officials debated increasing capital gains tax on crypto to align with global standards. No final decision yet.
March 1, 2024
SAT Fines Crypto Traders for Underreporting
Several crypto investors faced fines from SAT for failing to report gains accurately. Cases highlight enforcement efforts.
October 18, 2023
New Crypto Tax Software Launched in Mexico
A local fintech firm released software to help users calculate and report crypto taxes compliant with SAT rules. Aimed at simplifying compliance.
April 12, 2024
Mexico Aligns with OECD Crypto Tax Framework
Mexico adopted OECD's crypto asset reporting framework to enhance international tax cooperation. Effective from 2025.
September 25, 2023
Impact of Crypto Taxes on Mexican Investors
A study showed that high tax rates are deterring crypto investments in Mexico. Calls for reforms to encourage growth.
May 7, 2024
SAT Updates Crypto Valuation Methods
New rules from SAT specify how to value crypto for tax purposes, using average daily prices. Helps standardize reporting.
August 14, 2023
Disclaimer: This information is AI-generated and for educational purposes only. Tax laws are complex and subject to change. Always consult with a qualified tax professional for advice specific to your situation.