Starting January 1, 2025, Mexico's Special Tax on Production and Services (IEPS) increased by 4.5%, raising gasoline prices. This impacts businesses that use gasoline for operations.
To deduct gasoline expenses, taxpayers must meet specific requirements set by the Servicio de Administración Tributaria (SAT). These include using electronic payment methods and obtaining a digital invoice (CFDI).
Deductions are limited to 93 cents per kilometer traveled. Employees under the Salary and Wages Regime cannot deduct gasoline expenses. The Mexican government will subsidize Magna gasoline and diesel during the first days of January 2025.