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Mexico Grants 100% IEPS Stimulus, Neutralizing New Tax on Violent/Adult Videogames

The measure takes effect January 1, 2026 under a condition that companies do not shift the charge to buyers.

Overview

  • Published in the federal gazette on December 31, the presidential decree answers classification challenges the government cited for distinguishing violent or adult content.
  • The stimulus covers physical sales and digital access or downloads, including services provided by foreign platforms operating in Mexico.
  • The credit is applied against the IEPS due, generates no refunds or compensations, and is not treated as taxable income for income tax purposes.
  • Beneficiaries are relieved of certain formal IEPS obligations, including provisions that could lead to temporary platform blocking, while VAT duties for digital services remain unchanged.
  • The tax remains on the books as SAT prepares implementing rules, and opposition lawmakers argue the Executive lacks authority to effectively suspend a levy enacted by Congress.