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Mexico Grants 100% Tax Break, Neutralizing New Levy on Violent Video Games

A DOF decree allows full IEPS credit for eligible vendors provided they do not charge customers.

Overview

  • Published on Dec. 31, 2025, the decree takes effect Jan. 1, 2026, effectively reducing the new IEPS to zero while leaving it on the books.
  • The measure covers sales of physical titles and digital distribution, including foreign platforms that offer access or downloads in Mexico.
  • Companies may credit 100% of the IEPS only if they do not pass the charge to consumers, a condition intended to prevent price increases.
  • Value-added tax obligations remain in force, the stimulus generates no refunds or compensations, and it is not treated as taxable income for ISR purposes.
  • The SAT will issue implementing rules, and certain IEPS-specific reporting duties and penalties such as temporary service blocks are removed for this tax.