April 14, 2025
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Cryptocurrency Taxation in Mexico

cryptocurrency taxation in mexico

Mexico, one of the North American countries, in 2025, accepted the trading of digital assets, including Bitcoin and the rest. This has therefore marked a notable adoption as more individuals are adopting this digital trend. The government is fully aware that tax rules are crucial for protecting earnings, and mishandling them can result in a reduction in profits. For this reason, the government has placed a cryptocurrency taxation the Servicio de Administración Tributaria (SAT) will ensure that everyone abides by the law.

Here is a simple analysis and classification of the Country’s crypto tax system, rates, and filing steps, aiding individuals in staying lawful and dodging penalties.

Cryptocurrency Taxation System

In Mexico, since there is no specific crypto law, the Servicio de Administración Tributaria (SAT) uses the Income Tax Law. This law views crypto as “intangible assets,” meaning that it’s not real estate or money. Moreover, in 2018, the policy kicked off, and as of 2025, Servicio de Administración Tributaria (SAT) sharpened its focus on cryptocurrency. Additionally, they have also tapped into the records of exchange and blockchain technologies to monitor trading activities. Despite Fintech overseeing every activity from the platform, all crypto trading activities are subject to taxation, leaving no stone unturned.

Cryptocurrency Taxation

What Are the Types of Cryptocurrency Taxation in Mexico

  1. Firstly, Income Tax (IRS): This is applied to any profit made from staking, mining, or payments by anyone.
  2. VAT(Value-Added Tax): This tax is charged at 16% on any exchange fees and services (not direct crypto trades)
  3. Other Taxes: No wealth or inheritance taxes apply to cryptocurrencies beginning from the year 2025( Future rules may emerge)

Tax Rates

  1. ISR rate varies from 1.92% to 35%, based on total income, including crypto gains (per individual).
  2. Payment of 30% ISR on crypto profits for Businesses.
  3. Every year, an ISR exemption of 90,000 MXN (USD 4,500) applies to small gains for individuals.
  4. Value-Added Tax on Fees: This is fixed at 16%, cryptocurrency-related services are not excluded.

What Are The Treatments for Crypto Transactions

  1. Crypto Buy and Sell: Buying cryptocurrencies is tax-free while selling triggers ISR on profits.
  2. Crypto Mining and Staking: Earnings are taxed as income (1.92%–35%) when received.
  3. Cryptocurrencies Received as Payment: Taxed as income at the recipient’s ISR rate.
  4. Cryptocurrency-to-Cryptocurrency Trades: Treated as a sale, taxable under ISR on gains.
  5. Decentralized Finance Activities, Lending, Yield Farming: Taxed as income, pending clear SAT guidance.
  6. Non-Fungible-TokenTransactions: Follows crypto rules, with ISR on profits from sales.

Reporting/Compliance

It is compulsory for everyone to report crypto gains on their annual tax return, filed through the SAT’s online portal by April 30 for the prior year (January 1–December 31). They need records of all transaction dates, amounts, and peso values; methods like First-In-First-Out (FIFO) can be used. Records must be secured for five years. Late or missing reports may result in fines or audits, with SAT increasingly vigilant in 2025.

What Future Does Cryptocurrency Taxation Hold For Mexico

Furthermore, crypto rules may tighten as SAT eyes stricter platform oversight with the Fintech Law. The 2027 global Crypto-Asset Reporting Framework will promote cross-border tracking. However, the Bank of Mexico’s planned digital peso could shift policies by late 2025. In this process of supporting innovation, the government prioritizes tax collection, possibly adding incentives for compliance.

Conclusion

The Servicio de Administración Tributaria (SAT), using VAT and IRS for enforcing crypto taxes with other tools will help keep track, and individuals will also report gains. Also, record keeping, by April 30th to avoid fines.

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