Tax & Compliance

SAT deduction (Mexico)

Recognition of vehicle expenses as deductible by Mexico's SAT tax authority.

Mexico's SAT (Servicio de Administración Tributaria) allows deduction of vehicle expenses — fuel, maintenance, reimbursed mileage — when documented with a CFDI or valid receipt tied to the taxpayer's activity. Companies reimburse employees via internal receipts; the expense is then deductible on ISR. Independent professionals can deduct vehicle expenses under RESICO or Actividad Empresarial regimes.

Back to glossary