On March 3, 2026, an initiative to amend the Income Tax Law (Ley del Impuesto sobre la Renta, LISR) was presented before the Chamber of Deputies, with the purpose of establishing an annual tax on net worth specifically for individuals.
The amendment would seek to add a new section to Article 142 of the Income Tax Law, as well as Articles 146 Bis and Ter. The initiative seeks to tax the net worth of individuals residing in Mexico, as well as foreigners with a permanent establishment in the country whose net worth exceeds $100 million pesos at the end of each fiscal year.
The proposed articles establish that the tax would be calculated on the taxpayer’s net worth at the close of each fiscal year. For these purposes, net worth is defined as the sum of the total value of the taxpayer’s assets minus the amount of its debts and liabilities.
The assets that would comprise such assets include, among others, real estate; vehicles, vessels and aircraft; shares, participations in companies and financial instruments; bank deposits and investments; works of art, jewelry and other valuables.
The tax would therefore be levied not only on income generated during the year, but also on accumulated wealth, which represents a structural change with respect to the current income taxation model.
The tax would be determined by applying an annual progressive rate based on the size of the net worth:
– 1.5% for assets between $100 and $500 million pesos;
– 2.5% for assets between $500 and $1,000 million pesos; and
– 3.5% for assets over $1,000 million pesos.
If the reform is approved, there are three important points to consider due to the nature of the proposed tax, namely the determination of the value of certain assets through their valuation, the mechanisms for determining total equity and the form of compliance with information and notices, for which reason it will be important to be aware of how these aspects would be regulated if the reform is approved.
In the event of non-compliance, the proposal contemplates penalties that could include fines equivalent to double the amount of the omitted contribution, as well as criminal liability in accordance with the provisions of the Federal Tax Code. If approved, the decree would enter into force the day after its publication in the Official Gazette of the Federation.
At Vega, Guerrero & Asociados we closely monitor this initiative and its possible implications for taxation and estate planning in Mexico. For further information, or any advice on tax or administrative matters, please do not hesitate to contact our team.
