UPDATES ON THE STATE PAYROLL TAX (ISN)STATE OF CHIHUAHUA

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As has occurred in recent years, the Government of the State of Chihuahua has included in its 2026 Revenue Law a fiscal incentive consisting of a reduction in the State Payroll Tax (ISN).

It is important to note that this incentive applies to taxpayers who maintain a payroll of one (1) to fifty (50) employees.

WHO DOES IT APPLY TO?

Taxpayers with a payroll ranging from 1 to 50 employees.

WHAT IS THE DISCOUNT?

The applicable discount structure is as follows:

WHAT DO I NEED TO DO?

Taxpayers must submit the following information, in original and copy, to the State Revenue Office:

A written request formally applying for the fiscal incentive, which must include the following information:
a) The name, corporate name or business name, and signature of the applicant; the address registered with the State Taxpayer Registry; the Federal Taxpayer Registry (RFC); and, if applicable, the Unique Population Registry Code (CURP).
b) If applicable, the address for receiving notices within the State and the name of the authorized person to receive them.
The Mexican Social Security Institute (IMSS) contribution assessment form and proof of payment corresponding to December 2025.
The Tax Status Certificate issued by the Tax Administration Service (SAT).
The Opinion of Compliance with State and Coordinated Federal Tax Obligations, issued by the State Ministry of Finance.
Official photo identification of the taxpayer or legal representative.
Documentation evidencing legal representation when acting on behalf of another individual or a legal entity.

WHAT IS THE DEADLINE TO APPLY FOR THE INCENTIVE?

The deadline is January 31, 2026.

HOW DOES THE INCENTIVE APPLY?

The fiscal incentive will apply to each payroll tax payment period corresponding to fiscal year 2026, provided that such payments are made on time or within the statutory filing and payment deadlines, the incentive has been properly requested, and the taxpayer is current on all State Payroll Tax obligations.

OTHER UPDATES

4% ISN rate; extraordinary contributions based on a 3% rate

Pursuant to Decree LXVIII/RFLYC/0462/2025 I P. O., published on December 24, 2025, Article Second Transitory provides that for fiscal years 2026 and 2027, in lieu of the rate established in Article 75 of the Chihuahua State Finance Law, a 4% rate shall apply to the monthly payroll expenditures referred to in said Law.

The extraordinary contributions established under Decrees 266/94/XI/P.E. and 842/2012/VI/P.E., published in the Official Gazette of the State of Chihuahua on April 30, 1994 and September 22, 2012, respectively, shall be calculated based on the payroll tax incurred, applying a 3% rate.

At Toulet & Gottfried, we can assist you in complying with your tax obligations and in obtaining applicable fiscal incentives.