On March 30, 2026, the “Agreement issuing the Guidelines for applying the Decree granting a tax incentive for cinematographic and audiovisual production”(“Guidelines”) was published in the Federal Official Gazette (by its Spanish acronym, “DOF”), pursuant to Articles First, Fifth, and Second Transitory Provision of the “Decree granting a tax incentive for cinematographic and audiovisual production” published on February 16, 2026 in the DOF (“Decree”).
These Guidelines were issued by the Technical Committee, establishing the technical, procedural, and operational rules necessary for obtaining and applying the tax incentive aimed at strengthening the cinematographic and audiovisual industry within the national territory. They regulate key aspects such as the composition of the Technical Committee, the procedures for obtaining certificates, eligibility criteria, the transfer of the tax credit, and the grounds for revocation. The most relevant aspects are as follows:
1. Composition and powers of the Technical Committee. The Guidelines establish the creation of the Technical Committee as the collegiate body responsible for evaluating, authorizing, and supervising projects subject to the tax incentive. This body is comprised of the Undersecretariat of Revenue of the Ministry of Finance and Public Credit, the Mexican Institute of Cinematography (by its Spanish acronym “IMCINE”), and the Ministry of Culture.
Among its main powers are the analysis of projects, the issuance of certificates of filing and compliance, the determination of the applicable percentage of the tax incentive, and the supervision of the proper execution of the projects.
2. Dual authorization procedure. Access to the incentive is carried out through a procedure consisting of two (2) successive stages: the obtaining of the Certificate of Filing of Application and, subsequently, the Certificate of Compliance.
The first stage comprises the submission of the application and the corresponding documentation through the Single Window filing system, followed by the documentary verification by the Technical Secretariat, the technical analysis by IMCINE, and the resolution of the Technical Committee regarding the feasibility of the cinematographic or audiovisual production project or process; whereas the second stage begins once the authorized project has been completed and aims to demonstrate compliance with the technical, tax, and operational requirements set forth in the Decree and the applicable Guidelines.
For such purposes, the Applicant must submit the supporting documentation, the certified public accountant’s report, and the final project information, which will allow the Technical Committee to evaluate its execution and, if applicable, issue the corresponding Certificate of Compliance.
3. Quantitative requirements and eligibility criteria. The Guidelines establish specific criteria related to domestic sourcing, eligible expenses, territorial impact, cultural contribution, and technical training.
Among the main requirements are the majority participation of domestic suppliers, compliance with minimum percentages of expenditures within the national territory, and the documentary substantiation of the activities carried out.
4. Rules for the transfer of the tax credit. The rules for the transfer of the tax credit provide that such transfer may only be carried out for consideration once the Certificate of Compliance has been obtained, provided that it was contemplated in the corresponding application and that the beneficiaries meet the applicable tax and operational requirements. The transfer may be carried out in whole or in part to domestic suppliers related to the project or to income tax taxpayers, through an agreement containing the identification of the parties, the amount transferred, the agreed consideration, and an express reference to the Certificate of Compliance.
Likewise, the Guidelines impose specific restrictions on the transfer of the tax credit, including that the amount transferred may not exceed seventy percent (70%) of the authorized credit and that the economic value of the transaction may not exceed eighty-five percent (85%) of the transferred amount. Additionally, the transferred credit may not represent more than fifteen percent (15%) of the acquirer’s taxable income, and the agreements must include an express clause prohibiting the reassignment of the tax credit to third parties.
5. Audit and classification of expenses. The Guidelines include a Sole Annex classifying expenses as eligible and non-eligible for purposes of obtaining authorization of the incentive.
Eligible expenses include technical fees, production and post-production services, as well as leases essential for the project. Conversely, non-eligible expenses include value added tax, acquisition of fixed assets, interest, fines, and expenses incurred outside the national territory.
6. Grounds for revocation and liabilities. Failure to comply with the requirements set forth in the Decree and the Guidelines, the submission of false or inconsistent information, or non-compliance with the cinematographic or audiovisual production project or process may result in the revocation of the Certificate of Filing of Application or the Certificate of Compliance. In such cases, the Technical Committee must issue a duly reasoned resolution, notify the Applicant of the grounds, and grant a period for the Applicant to submit information or documentation to refute the facts giving rise to the revocation.
In the event the revocation becomes final, the involved parties must correct their tax situation by filing complementary tax returns and paying the tax that should have been paid if the incentive had not been applied, together with the corresponding adjustments and surcharges within the month following the respective notification.
Additionally, the applicant or authorized party whose certificate has been revoked may not access the tax incentive again in subsequent fiscal years, which represents a significant tax risk for participants.
From the foregoing analysis, it is concluded that the Guidelines constitute a fundamental regulatory instrument for the strengthening and development of the cinematographic and audiovisual industry in Mexico; however, their proper implementation requires a detailed review from legal, tax, and operational perspectives.
The proper structuring of projects, as well as of agreements and tax credit transfer mechanisms, will be key to mitigating risks, avoiding contingencies, and optimizing the use of the tax incentive.
