Highlights of the Federal Revenue Law 2024: Key Changes and Insights

On November 13, 2023, the Federal Revenue Law for fiscal year 2024 (Ley de Ingresos de la Federación para el ejercicio fiscal de 2024) was published in the Mexican Official Gazette, which, among other aspects, establishes the estimated revenues that the Federation expects to collect, as well as several rules and tax benefits that will be applicable for fiscal year 2024.

Estimated revenue collection

Total revenues are estimated at 9 trillion, 66 billion, 45.8 million pesos, which represents an increase of 9.23% compared to the estimated revenues for fiscal year 2023.

Of this total collection, 4 trillion, 942 billion, 30.3 million pesos correspond to taxes, of which we show the variation between 2023 and 2024:

Surcharge rate

The surcharge rate of 0.98% per month applicable to the payment of tax credits is maintained. Likewise, the surcharge rates for payments in installments are maintained:

• 26% monthly (up to 12 installments).
• 53% monthly (up to 24 installments).
• 82% monthly (more than 24 installments).

Reduction of taxpayers' self-correction tax penalties

The tax benefit of the reduction of fines for non-compliance with tax obligations other than those of payment is maintained for taxpayers subject to electronic review.

• 50% reduction of the fine if the taxpayer pays the taxes after the tax authorities begin to exercise their review capacities and before the final minutes of a field audit is issued.
• 40% reduction of the fine when the omitted taxes are paid together with their accessories, after the final minutes of a field audit is issued.

Tax incentives

With respect to tax incentives, the incentives applicable in 2023 remain unchanged:    

• Tax incentive for individuals who carry out entrepreneurial activities and purchase fuels to be used in machinery.
• Tax incentive for companies engaged exclusively in agricultural or forestry activities that acquire fuels for final consumption in such activities.
• Tax incentive for purchasers of fuels for final consumption in public, private, passenger or freight transportation, as well as tourism.
• Tax incentive for taxpayers engaged in public, private, passenger or cargo transportation, as well as passenger tourism, who use the National Toll Road Network.
• Tax incentive for purchasers of fossil fuels used in their production processes and those not intended for combustion.
• Tax incentive for taxpayers holding mining concessions and allocations.
• Tax incentive for persons who sell books, newspapers and magazines whose income from such activity represents at least 90% of their total income.

Bank withholding tax

The income tax withholding rate for interest paid by financial system institutions will increase from 0.15% to 0.50% for fiscal year 2024.

Economic support for earthquakes 2017

The benefit is maintained for individuals whose dwelling is located in the areas affected by the 2017 earthquakes, to not consider as taxable income the economic or monetary support received, as long as it is granted by authorized donors and is destined to the reconstruction or repair of their dwellings.

We are here to provide you with any additional information you may need, as well as to respond to your questions and comments. Please do not hesitate to contact us if you require further details or assistance regarding this situation.