CB Strategy

Anticipating the 2025 Fiscal Year-End: Key to Effective Planning.

June 10, 2025

Ana Gabriela Vázquez

We're approaching the second half of 2025, and as the fiscal year progresses, it's essential for companies to begin reviewing their fiscal year-end strategy, as advance planning can make the difference between an optimized tax burden and a missed opportunity.

In this regard, there are various alternatives that can be evaluated now, with the goal of reducing taxable profit or, if necessary, generating a credit balance that can be used in subsequent fiscal years.

Below, we cover some of the main routes that are worth keeping an eye on:

1. Increase or decrease in authorized deductions.

One of the simplest and most effective ways to reduce your taxable income is to optimize authorized deductions. This may include:

  • Anticipate recurring expenses (maintenance, fees, professional services, etc.). This involves simultaneously analyzing the fiscal year-end and the company's cash flow.
  • Review inventories to identify losses due to deterioration or obsolescence that can be deducted in accordance with the requirements of the LISR.
  • Evaluate the acquisition of fixed assets that allow for immediate deduction or accelerated depreciation as provided by law.
  • If there is a past-due portfolio, conduct a detailed review to identify possible tax deductions.

On the other hand, although less common, there are cases in which the taxpayer needs to reduce the total of their authorized deductions. In this case, it is necessary to review each deduction item to determine which one(s) could be reduced.

2. Application of the Decree granting tax benefits under the “Mexico Plan.”

Last January, the Decree granting tax incentives to support the national strategy known as "Plan México" was published in the Official Gazette of the Federation. This decree aims to foster new investments, incentivize dual training programs, and promote innovation. This decree includes benefits such as:

  • Immediate deduction from 100% for new assets that meet certain requirements.
  • Reduction of provisional income tax payments, based on investments or job creation.
  • Preferential treatment for certain strategic sectors, such as advanced manufacturing, clean technologies, and services exports.

It is important to mention that in order to take advantage of the benefits of this Decree, several requirements are established, the main ones being:

  • That they are new assets, not used.
  • That the investments are linked to a productive project in operation in Mexico.
  • Submit a notice to the SAT with the description of the project, its investment amount, and location.
  • Comply with the obligation to verify documentation and follow-up with the tax authorities.

3. Review of tax losses and other tax attributes.

Correctly updating tax losses generated in fiscal years prior to 2025 allows for their amortization against profits for the fiscal year. Errors are common in the updating process, so reviewing it could increase the total for this tax attribute. It's also a good time to review the CUCA and CUFIN balances, especially for companies that have had capital movements or profits in recent years. Correctly updating these tax attributes allows for maximizing these tax attributes.

Conclusion.

Tax planning shouldn't be left until the last quarter of the year. A timely review of financial statements, profit projections, and cost structure can pave the way for implementing legitimate and efficient tax strategies. At CB Strategy, we assist our clients in identifying and properly applying these benefits, aligned with current tax regulations and their specific needs. If your company is looking to optimize the 2025 fiscal year, now is the time to start.


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