In brief
Presidential Decree and related Guidelines grant a transferable income tax credit of up to 30% of qualifying Mexico-incurred film/audiovisual costs. The tax incentive is capped at MXN 40 million per beneficiary and MXN 400 million annually, available through 30 September 2030, subject to eligibility, spend thresholds, compliance requirements, and exclusion cases.
Key takeaways
In order to promote investment and strengthen the audiovisual industry in Mexico, the Federal Executive established in 2026 a tax incentive that allows to credit against the income tax a relevant part of the production and post-production costs made in the country, as well as to transfer said credit between different participants, including other taxpayers that are not part of the supply chain (corporate groups, investment funds, platforms or companies that seek to optimize their income tax) to whom the beneficiary may sell up to 70% of the credit under certain limits of amount, price and proportion with respect to their tax profit.
In more detail
On 30 March 2026, the Guidelines for applying the decree granting a tax incentive to film and audiovisual productions ("Decree") were published in the Official Gazette of the Federation.
The Presidential Decree seeks to incentivize film and audiovisual productions carried out in Mexican territory, with the purpose of strengthening the creative industries, attracting productions, generating specialized employment and strengthening the national production chain, through the granting of an incentive that consists of a tax credit of up to 30% of the total cost of the project or process of film or audiovisual productions (development, pre-production, production, post-production and final delivery of the work) made in Mexico, with a limit of MXN 40 million per production and per beneficiary. The total annual amount of the incentive will not exceed MXN 400 million distributed from the entry into force and until 30 September 2030.
The tax credit is transferable for consideration to maximize its economic impact; that is, the beneficiaries can assign it to national suppliers directly related to production or to other taxpayers of income tax or apply it by the beneficiary itself against income tax for the year or provisional payments. The beneficiaries are individuals and legal entities resident in Mexico, residents abroad with a permanent establishment in the country and residents abroad without a permanent establishment who produce through a Mexican production company.
Among the requirements are: to be registered in the Federal Taxpayers Registry, to have a tax mailbox enabled; a positive and current compliance opinion; to present the project according to the Guidelines; make expenditures in national territory and have at least 70% of national supply; to obtain certificates of presentation of procedure and compliance issued by the Technical Committee in accordance with the Guidelines.
Minimum thresholds of expenditures in Mexico are foreseen depending on the type of project: MXN 40 million for feature films, narrative series or animation; MXN 20 million for feature films or documentary series; and MXN 5 million for the animation, visual effects and post-production process of a film or audiovisual project.
The Decree establishes cases of exclusion, such as taxpayers included in blacklists of articles 69 and 69-B, 69-B Bis of the Federal Tax Code, taxpayers with final tax liabilities, in liquidation or with restrictions or cancellation of tax digital stamps or certificates and those who apply the tax incentive to film production of article 189 of the Income Tax Law, among others.
The tax incentive is not accruable income nor does it generate refunds, compensations or balances in favor. The Decree enters into force the day after its publication and will be in force until 30 September 2030.
The Guidelines published on 30 March are intended to establish the composition, attributions, quorum, development of sessions, decisions and other aspects related to the Technical Committee indicated in the Decree; as well as the procedure, criteria, eligibility parameters and requirements that must be met by film or audiovisual production projects or processes carried out in national territory; the requirements that must be met by taxpayers dedicated to film or audiovisual production, who are interested in obtaining the certificates of presentation of procedure and compliance, issued by said Technical Committee; as well as the application of the tax credit, the causes and the procedure for revocation of the certificate of compliance.
Call to Action
We recommend evaluating whether projects may qualify for the benefits of the income tax incentive and evaluate how the tax credit may be used or transferred to qualifying national suppliers or other taxpayers. In parallel, it is necessary to review the eligibility and compliance requirements and start assembling the documentation package under the Guidelines to obtain the Technical Committee’s certificates of submission and compliance.