Mileage deduction under Mexico's RESICO regime (2026)
Mexico's RESICO regime simplifies tax for SMEs and individuals, but vehicle deductions follow specific rules. The complete guide.
What is RESICO
Mexico's *Régimen Simplificado de Confianza* (RESICO), in force since 2022, offers low ISR rates (1% to 2.5% of gross income) to individuals earning up to MXN 3.5M/year, and a flat rate to companies earning up to MXN 35M/year.[^lisr-25-96] The catch: deductions work differently than under the general regime.
Individuals on RESICO
Individuals on RESICO **cannot deduct individual expenses**. They pay ISR on gross income at the 1%–2.5% progressive scale. So a RESICO sales rep who drives 1,800 km/month **cannot subtract** fuel, maintenance, or insurance from income — the low rate is meant to absorb those costs in aggregate.
If vehicle costs exceed 15–20% of revenue, the general regime (with real deductions) usually wins. Run the comparison every January.
Companies on RESICO
Companies on RESICO **can deduct** expenses, including vehicle costs, but with caps:
- Authorized deductions follow ISR Law Art. 25. - Vehicle investment cap: **MXN 175,000** (Art. 36 LISR) regardless of actual cost. The business-use percentage applies on top. - Fuel: 100% deductible **only when paid by credit card, debit card, or registered cheque** — never cash (Art. 27 LISR). - Maintenance, insurance, tenencia: proportional to business use, with CFDI in the company's name.
Reimbursing employees from a RESICO company
When a RESICO company reimburses an employee for mileage:
- The reimbursement is **deductible to the company** when supported by a trip log (date, origin, destination, purpose, km). - The reimbursement is **not taxable to the employee** when it varies with actual mileage; flat monthly allowances are reclassified as salary subject to ISR and IMSS. - The per-km rate is not set by SAT. The Mexican market in 2026 runs MXN 5–8/km. Document the methodology in writing.
CFDI and the trip log
Fuel CFDIs must be issued in the company's name (or the employee's, if reimbursed, attached to the expense report). SAT tightened CFDI fuel criteria in 2024: the station must be a current taxpayer, the RFC must match, and the payment method cannot be cash.
The trip log is what ties the individual CFDI to business use. Without a log, SAT can reject the deduction even when the CFDI is valid.
When to switch regimes
| Profile | RESICO wins if | General wins if | |---|---|---| | Individual | Costs < 15% of revenue | Costs > 25% of revenue | | Company | Few depreciable assets | Heavy vehicle investment |
Regime changes are filed in January for the year ahead. Use prior-year actuals.
What to do this quarter
1. If you are an individual with a work vehicle, simulate both regimes with real numbers. 2. If you are a RESICO company, ensure all fuel CFDIs name the company and payment was non-cash. 3. If you reimburse employees, keep detailed trip logs — SAT requests them in electronic review. 4. Document the internal per-km rate in a signed, dated policy.