Mexico is located in southern part of North America and borders the United States of America, Guatemala and Belize, Mexico also shares maritime borders with Cuba and Honduras. The territory of Mexico amounts to 1,970,000 square kilometers. The capital city of Mexico is Mexico City, the largest city and the location of key government institutions.
Mexico has an access to the Gulf of Mexico and to the Atlantic Ocean, as well as to the Pacific Ocean.
The population of Mexico currently amounts to more than 126 million people.
Corporate taxation, VAT taxation, Personal taxation
- Corporate income tax - 30%. Tax returns are filed on an annual basis. Advance income tax payments are made on a monthly basis
- Dividend withholding tax - 10%
- Interest withholding tax - from 10% up to 35%
- Royalties withholding tax - from 5% up to 35%
- Capital gains tax - 30%
- VAT - Standard tax rate 16% or reduced rates from 0% up to 8% or tax exempt. Tax returns are filed on a monthly basis
- Personal income tax - from 1.92% up to 35%.
The following are the most common types of companies to incorporate a company in Mexico as:
- Limited liability company (Sociedad de Responsabilidad Limitada de Capital Variable - S. de R.L.)
- Public limited company (Sociedad Anónima - S.A.)
- General partnership (Sociedad en Nombre Colectivo - S. en N.C.)
- Limited partnership (Sociedad en Comandita Simple - S. en C.S.)
- Partnership limited by shares (Sociedad en Comandita por Acciones - S. en C. por A.)
- Branch office (Sucursal).
Official currency of Mexico is Mexican Peso (MXN).
GDP of Mexico currently amounts to more than USD 2.6 trillion. The growth of the GDP in 2019 was around 2%, inflation - 4.9%. Mexico is the 12th largest exporter in the world. Over the last years the United States has received around 80% of Mexico's exports. Mexico's primary export is manufactured products. It also exports silver, fruits, vegetables, coffee and cotton.
The service sector is the largest part of GDP at 70.5% followed by the industrial sector at 25.7%, agriculture at 3.9%. Mexico is the world's 8th largest producer of oil. Mexico imports machinery for metalworking and agriculture, electrical equipment, vehicle and aircraft parts, steel mill products.