Overview

• The 2026 revenue bill before Congress proposes lifting the ISR withholding on interest from 0.50% to 0.90% for bank and investment returns.
• SHCP says the withholding mechanism is established in law and serves as partial prepayment, with any balance settled in the annual return without increasing the final tax due.
• Taxpayers can receive credits or refunds through the SAT at the time of the annual reconciliation, with returns processed after the filing period in 2027.
• Savers with balances under 206,000 pesos remain exempt and those earning under 400,000 pesos may keep the option not to file, while deductions such as medical, education, mortgage interest and retirement contributions still apply.
• Opposition figures and analysts warn the change could weigh on small and informal savers who may not file for refunds, and falling interest rates expected into 2026 could make the higher withholding more burdensome and discourage formal saving.