Non-residents are generally subject to income tax on all income and gains that are derived from Mexican sources.
It is government policy to discourage long-term hire of foreign employees (see 9.2). However, there are domestic policies in place regarding the taxation of non-residents with income from Mexico.
Remuneration of non-resident employees
There is a limited exemption to tax and the obligation to withhold tax, which is discussed in 5.3.
In all other cases withholding of tax must be applied to the integrated salary of the employee. For more on the meaning of integrated salary see 2.1.
The following withholding tax rates are applied to the Mexican employment income of a non-resident in a year:
| Lower threshold (MXN) | Upper threshold (MXN) | Rate (%) |
| 0 | 125,900 | 0 |
| 125,900 | 1,000,000 | 15 |
| 1,000,000 | and |
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Web page updated on 17 Mar 2025 14:41