Mexico RESICO Tax Regime
$1200.00
Mexico RESICO Tax Regime (Régimen Simplificado de Confianza)
The RESICO (Simplified Trust Regime) is a tax system introduced by Mexico’s tax authority, the Servicio de Administración Tributaria (SAT), designed to make tax compliance easier and cheaper for small taxpayers.
Who Can Use RESICO?
Individuals (Personas Físicas)
You can qualify if:
Your annual income is up to MXN 3.5 million
You carry out business activities, provide professional services, or lease property
You issue digital invoices (CFDI) and report income through SAT systems
Companies (Personas Morales)
Eligible if:
Annual revenue is up to MXN 35 million
Shareholders are individuals only (no corporate shareholders)
Key Benefits
1. Very Low Tax Rates (Individuals)
RESICO offers significantly reduced income tax rates:
1% to 2.5% depending on income level
Calculated on gross income (cash flow basis), not profit
This is much lower compared to traditional tax regimes.
2. Simplified Reporting
Minimal accounting requirements
SAT pre-fills tax returns using issued invoices (CFDI)
Monthly and annual filings are streamlined
3. Cash Flow-Based Taxation
You only pay tax on income actually received, not invoiced.
This improves liquidity, especially for freelancers and service providers.
Obligations
Even though it’s simplified, you must:
Issue CFDI invoices for all income
File monthly tax returns
Maintain updated tax information with SAT
Accept SAT’s pre-filled calculations (or adjust if needed)
Restrictions & Who Cannot Use RESICO
You cannot opt into RESICO if:
You are a partner/shareholder in another company (for individuals)
You earn income through certain complex structures (e.g., trusts)
You exceed the income limits
You are a non-resident without a permanent establishment in Mexico
VAT (IVA) Still Applies
Important:
RESICO does NOT eliminate VAT (IVA) obligations.
You must still charge, report, and pay VAT (typically 16%)
VAT filings remain separate from income tax
Pros vs Cons
Advantages
Extremely low income tax rates
Easy compliance and reduced admin
Ideal for freelancers, consultants, and small businesses
Disadvantages
Limited deductions (since tax is on gross income)
Strict compliance requirements (CFDI issuance is critical)
Not suitable for businesses with high expenses
Who Should Consider RESICO?
RESICO works best if you:
Have high margins / low expenses
Want a simple tax structure
Are a freelancer, consultant, or small business owner
Prefer predictable, low tax payments
Bottom Line
The RESICO regime is one of Mexico’s most attractive tax options for small taxpayers, offering low rates and simplified compliance. However, it’s not ideal for everyone—especially if your business relies heavily on deductions.
