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Mexico: Extension of tax incentives for border regions and fuels

Effective January 1, 2026

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January 14, 2026

A decree, effective January 1, 2026, extends tax incentives for income tax (ISR) and value added tax (VAT) in border regions, as well as excise tax (IEPS) benefits for automotive fuels.

The decree incorporates regulatory adjustments to align with the new organizational structure for energy matters.

Read a January 2026 report (Spanish) prepared by the KPMG member firm in Mexico

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