Mexico

In Mexico, cryptocurrencies are legally recognized as intangible movable property or virtual assets under the FinTech Law and Federal Tax Code, they are not considered legal tender. The regulation status for crypto is "legal," meaning general tax laws apply to these assets as there is no specific dedicated crypto tax framework. The Servicio de Administración Tributaria (SAT) is the primary body responsible for governing crypto taxation in Mexico. This authority applies existing legal frameworks, primarily the Income Tax Law (ISR), the Value Added Tax Law (IVA), and the FinTech Law, to virtual asset activities. When it comes to taxation, individuals are subject to a progressive income tax rate ranging from 1.92% to 35% on their worldwide crypto income and gains. Corporations face a flat 30% tax rate on all crypto-related income and gains. There is no distinction between short-term and long-term capital gains, all gains are taxed progressively regardless of the holding period. Converting crypto to fiat currency is a taxable event, with the gain calculated as the sale price minus the acquisition cost, adjusted for inflation. Swapping one cryptocurrency for another is also a taxable event, treated as two disposals, with each swap triggering gain realization. A Value Added Tax (VAT) of 16% applies to crypto transfers if both parties are located in Mexico, while exports are zero-rated. Individuals cannot deduct losses from crypto sales against other income, though an annual exemption of approximately MXN 90,000 on gains from movable property sales may apply. For specific crypto activities, staking rewards are generally treated as ordinary income and are subject to the progressive individual income tax rates (1.92-35%) at the time of receipt, though specific official guidance is lacking. Mining rewards are considered business income, also subject to progressive individual rates, and costs such as hardware and electricity may be deductible if the activity is deemed a business. Decentralized Finance (DeFi) activities, such as yield farming or liquidity provision, are typically taxed as income or gains under general tax principles, as there are no dedicated rules. Non-Fungible Tokens (NFTs) are classified as virtual assets, making them subject to ordinary income tax, but their exact treatment remains unclear.