How are dividends taxed in Mexico?

Profits are first taxed at the 30% corporate ISR. When distributed, dividends paid to resident individuals from 2014 onward carry an additional 10% withholding (retención), which is a final tax on the shareholder. So the dividend in your hand is the declared amount less 10%.

The CUFIN (Cuenta de Utilidad Fiscal Neta) tracks profits that have already paid corporate ISR. Dividends paid out of the CUFIN are not taxed again at the company level, but the separate 10% shareholder withholding still applies to individuals.

Do non-residents pay the same rate?

Non-resident shareholders are also subject to the 10% withholding, but a tax treaty between Mexico and your country may reduce it. Enter the applicable treaty rate to see your net dividend.

What does the gross-up show?

The gross-up estimates the total tax borne by the profit before it reached you — the 30% corporate ISR plus the 10% withholding. It illustrates the combined burden, though the corporate tax was paid by the company, not deducted from your dividend.

Are my figures sent anywhere?

No. The calculation runs entirely in your browser. Nothing you enter is uploaded or stored, so you can model your dividend income privately.

Mexico Dividend Tax Calculator

Email me this result

Get this tool's output sent to your inbox, plus one useful tool a week. No spam, unsubscribe any time.

This Mexico dividend tax calculator works out the net dividend you keep after the 10% additional withholding that applies to resident individuals, and can gross up the 30% corporate ISR already paid to show the full tax borne by the profit. It suits investors and business owners drawing dividends from a Mexican company.

How it works

Mexico taxes distributed profit in two layers:

Corporate ISR of 30% is paid by the company on its profit before any dividend is declared. Profit that has paid this tax sits in the CUFIN.
When dividends are paid to resident individuals, an additional 10% withholding (retención) is deducted as a final tax on the shareholder.

For the shareholder, the net dividend is simply:

net = gross_dividend × (1 − withholding_rate)

The optional gross-up adds back the corporate ISR to show the total tax the underlying profit carried, even though only the 10% is taken from your dividend.

Example

A MXN 100,000 dividend with the standard 10% withholding leaves you MXN 90,000 net. If you gross up the corporate layer, the pre-tax profit needed to pay that dividend was about MXN 142,857 (at 30% corporate ISR), so roughly MXN 52,857 of total tax sat behind your MXN 90,000 — a combined effective burden of about 37%.

Notes

The 10% withholding applies to dividends generated from 2014 profits onward; older CUFIN balances may be exempt from it. Non-residents can often reduce the 10% under a treaty — enter your treaty rate. The corporate ISR is paid by the company, not deducted from your dividend, so the gross-up is an economic illustration. This is an estimate, not tax advice.