Per Diem

In 2025, Mexico’s per diem (viáticos) compliance regulations for business travel are governed by the Ley del Impuesto sobre la Renta (LISR) and specific SAT provisions:

1. Exempt and Deductible Viáticos:
   • Viáticos can be exempt from tax if they are strictly necessary for business purposes and properly documented.
   • Employers must ensure that the expenses align with the employee’s work activities and occur outside their usual place of residence.
   • Viáticos must be documented with electronic invoices (CFDI) for them to be deductible.
2. Limits for Non-Compliant Receipts:
   • Employees who receive viáticos and spend them for work purposes can have up to 20% of the total viáticos considered exempt without requiring an invoice.
   • However, this amount cannot exceed $15,000 MXN per fiscal year.
   • The remaining 80% of viáticos must be paid via the employer’s corporate credit, debit, or service cards to maintain compliance​ wwwmat.sat.gob.mx
3. Specific Exclusions:
   • Airfare and lodging expenses are not included in the non-compliance exemption and must always be documented​ wwwmat.sat.gob.mx
4. Tax Treatment:
   • If viáticos exceed the allowed limit or are not justified, they become taxable income for the employee.
   • Employers who do not follow compliance rules may face deductibility issues when filing corporate taxes​ sat.gob.mx

For more details, you can refer to the SAT portal and the LISR, Article 93, Fraction XVII.

Mileage

The SAT allows businesses to deduct mileage expenses for employees using personal vehicles for business purposes. The reimbursement must be reasonable and supported by official invoices (CFDI).

In Mexico, the standard mileage reimbursement rate varies, but fuel expenses, tolls, and parking fees are deductible if paid electronically and documented with CFDI invoices. If employees receive excessive mileage reimbursements above SAT limits, the extra amount is considered taxable income.

For official mileage rates and documentation requirements, refer to the SAT’s tax deduction guidelines: SAT Mileage Reimbursement Rules​

Paperless

Mexican tax law strongly encourages businesses to maintain digital records. The SAT requires that all business expenses, including travel-related costs, be supported by electronic tax invoices (CFDI). These digital records must be stored for at least five years and be available for audit upon request.

Employers must ensure that receipts for lodging, transportation, and meals comply with SAT’s electronic invoicing standards. Employees should request digital receipts from vendors whenever possible.

More information on SAT’s electronic record-keeping requirements is available at SAT Portal​

Meals, Benefits & Allowances

Meal expenses in Mexico are deductible under specific SAT regulations. Employers can provide meal allowances as part of employee compensation, but these may be taxable if they exceed prescribed limits.

The deductible limit for meals is $750 MXN per day for domestic travel and $1,500 MXN per day for international travel. Any meal reimbursements exceeding these limits must be reported as taxable income for employees.

For more details, refer to SAT’s guide on employee benefits and deductions: SAT Meal Expense Rules​

Sales tax rates

Mexico’s Value-Added Tax (IVA) rates for 2025 are expected to remain as follows:

• Standard Rate: 16% (applies to most goods and services)
• Reduced Rate: 8% (applies to certain border regions to promote economic activity)
• Zero Rate (0%): Applies to basic food items, medicines, books, and exports.
• Exemptions: Certain education, medical services, and financial services are VAT-exempt.

For official confirmation, visit SAT’s website.

Businesses registered for VAT can claim a tax credit on IVA paid for business-related travel expenses. To qualify, companies must ensure that invoices are properly issued and include the employee’s tax identification number (RFC).

For additional details, visit the official SAT website: SAT IVA Guidelines​