Mexico: Taxpayer Advocate disagrees with tax authority’s position on deduction of advertising and promotional expenses

Taxpayers entitled to deduct advertising and promotional expenses whether or not they own promoted brand.

The Office of the Taxpayer Advocate (PRODECON) issued Systemic Analysis 8/2025, concluding that the position of the Tax Administration Service (SAT)—that a taxpayer cannot deduct advertising and promotional expenses when they do not own the brand being promoted—is not valid under current law. Taxpayers are entitled to deduct these expenses provided that the taxpayer can demonstrate the expenses are necessary to fulfill their corporate purpose.

Read a February 2026 report prepared by the KPMG member firm in Mexico

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Mexico: Taxpayer Advocate disagrees with tax authority’s position on deduction of advertising and promotional expenses

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