In effect, for fiscal year 2024 the annual withholding rate could be 1.48%, which is 8.6 times higher than the rate established during fiscal year 2023, which was 0.15%. During 2022 the retention rate was even lower, at just 0.08%.
One of the reasons for increasing the tax, the Treasury said, was the recovery of the real interest rate. That is, the rate that results after deducting inflation.
In fact, while inflation was already reduced to levels of 4.64% in August, the Bank of Mexico’s interest rate remains at 11.25%. Which contrasts with the conditions of last year, when inflation closed at 7.82%.
Who does this tax affect?
Cetes savers, for example, would be some of the main affected by this tax increase. And, in general, any person who invests in these and other types of bonds of the Mexican financial system.
In this way, if at the end of 2023 the interest rate continues at 11.25% and inflation closes at 3.8%, as the government itself estimates, Cetes savers will have a real rate of return of 6.7%.
Institutions that pay interest to investors automatically withhold the tax. It should be noted that in the case of Cetes, for example, the 1.48% withholding is provisional and that the total ISR payment will be determined with the annual declaration.