On December 27, 2024, the “Decree that amends, adds and repeals various provisions of the Tax Code of Mexico City” (“Decree”) was published in the Official Gazette of Mexico City, which entered into force on January 1, 2025. Among the amendments and additions to the Tax Code of Mexico City (“CFCDMX”) are the following:
1.- Property Tax (“IP”). New IP obligation. The last fraction of Article 132 of the CFCDMX is added, establishing a new informative obligation regarding the residential use of certain properties. The declaration must contain information on the use and occupation of the properties.
This obligation falls on the owners of properties located in ranges L, M, N, O and P of the rate established in Article 130, Section I of the CFCDMX, that is, those with a cadastral value equal to or greater than $4,524,974.08 (Four million five hundred twenty-four thousand nine hundred seventy-four Mexican pesos, 08/100).
2.- Payroll Tax (“ISN”). Article 158 of the CFCDMX is amended, increasing the rate of this tax from three percent (3%) to four percent (4%), thus increasing the tax burden for employers.
3.- Tax on the Emission of Polluting Gases into the Atmosphere (“IEGCA”). Chapter VII TER, called “Tax on the Emission of Polluting Gases into the Atmosphere”, is added to the CFCDMX, which establishes the creation of a new environmental tax aimed at discouraging practices that contribute to climate change.
The purpose of this tax is to tax the emission of polluting gases into the atmosphere, generated by fixed sources located within the territory of Mexico City. The gases subject to the tax include:
a) Carbon dioxide (CO₂).
b) Methane (CH₄).
c) Nitrous oxide (N₂O).
The tax will apply when the total sum of emissions of these gases, either individually or in combination, is equal to or greater than one ton of carbon dioxide equivalent (t CO2e) during a calendar month.
4.- Correction of Property Tax and Real Estate Acquisition Tax Rates. Articles 113 and 130, Section I of the CFDMX are amended in order to correct the rates applicable to both taxes, guaranteeing respect for the principles of progressivity and proportionality established in Article 31, Section IV of the Political Constitution of the United Mexican States.
The above, since in previous fiscal years, the rates contemplated in these articles were declared unconstitutional by the Federal Judiciary, since it was determined that they did not comply with the aforementioned principles, by imposing disproportionate and non-progressive tax burdens on taxpayers.
