Question

Explains what the IEPS(Special Tax on Production and Services in mexico) is in depth, to which sectors it applies, how is determined by the government, how it updates it year after year, and some examples.

Answer 1

IEPS tax rates on different goods:

• 26.5 percent, 30 percent and 53 percent: alcoholic beverages tax and services related with them.
• 30.4 percent and 160 percent: tobacco, cigarettes and related services tax
• 6 percent, 7 percent and 9 percent: pesticides.
• 8 percent: food with a caloric density of 275 kilocalories or more per 100 grams.
• 30 percent: gambling and lotteries.
• 3 percent: rendering of telecommunications services through public networks, except for public and rural telephone and connection services between public networks and the internet.

IEPS

Individuals and legal entities need to register in IEPS if engaged in the following activities:

• disposal and permanent import of the above goods in Mexican territory
• rendering of services related to the goods.