Update on the accumulation factor for deposits or investments abroad

For the 2024 fiscal year, the applicable accumulation factor will be 0.1368. This update is highly relevant for individuals who are tax residents in Mexico and have this type of income, as it directly influences the way income generated by deposits or investments abroad must be reported.

What does this update imply for taxpayers?

• Calculation of accumulated income: The new accumulation factor must be applied to the amount of the deposit or investment at the beginning of the fiscal year, which will affect the calculation of accumulated income for Income Tax (ISR) purposes.

It is important to remember that Article 239 of the Income Tax Law Regulations mentions that individuals who obtain income from interest and foreign exchange gains generated by deposits or investments in institutions located abroad may opt to calculate the accumulated amount of such income in accordance with Article 143 of the Law. That is, in addition to the option of the accumulation factor, there is an additional alternative which is Article 143 for reporting these incomes.

Recommendations for taxpayers

Given the complexity of these updates and the potential tax implications, it is essential to have the support of a specialised tax advisor. At Forvis Mazars, we have experts in global mobility and individual taxation who can help you assess the best options for your specific situation and ensure proper compliance with your tax obligations.