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Mexico Issues Decree Neutralizing New 8% Video Game IEPS With 100% Stimulus

Citing the difficulty of classifying violent content, the government opted for a full credit to avert price hikes.

Overview

  • The decree, published in the federal gazette on December 31, takes effect January 1, 2026, and grants a credit equal to the 8% IEPS for games labeled violent or adult-only.
  • The measure applies to physical sales and digital services, including foreign platforms operating in Mexico, as long as the tax is not passed to consumers.
  • The stimulus is creditable only against the IEPS, does not trigger refunds or compensations, and is not treated as income for ISR purposes.
  • Beneficiaries are relieved of certain IEPS formal obligations and protections include avoiding temporary platform blocking tied to this levy, while IVA requirements remain in force.
  • Opposition lawmakers argue the executive cannot neutralize a statutory tax, and the SAT is tasked with issuing implementing rules.