Mexico: Withholding tax rates, for temporary workers and motor transport sector

Mexico: Withholding tax rates

The tax administration (Servicio de Administración Tributaria—SAT) on 22 March 2021 released guidance regarding certain withholding tax rates for 2021.


Regarding the rules for withholding of income tax, the guidance allows for a 4% withholding tax rate on amounts paid to “temporary workers” (provided the amount paid to each worker on the northern border region does not exceed MXN 427 and for the rest of the country does not exceed MXN 283).

Regarding the withholding tax for taxpayers involved in the motor transport of passengers or cargo, the rate is 7.5% of the base contribution salary.

Read a March 2021 report (Spanish) prepared by the KPMG member firm in Mexico

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