Coeficiente de Utilidad (Profit Coefficient)koh-eh-fee-see-EN-teh deh oo-tee-lee-DAHD
Coeficiente de utilidad is the ratio of fiscal profit to nominal income from a prior tax year, defined in Article 14 of the ISR Law. Mexican corporations use it to estimate taxable profit for monthly provisional income-tax payments.
By Daniel Ortega · Last reviewed 8 November 2026
How it works
Foreign individuals buying, owning or renting property in Mexico do not use coeficiente de utilidad; it applies only to Mexican corporations and LLCs (personas morales) in the general ISR regime. A corporation divides prior-year fiscal profit by prior-year nominal income to calculate the coefficient, truncated to four decimal places. Each month the corporation multiplies current-period nominal income by the coefficient to estimate taxable profit, then applies the 30 percent ISR rate to determine the monthly payment. Example: a rental corporation with coefficient 0.2500 and MXN 100,000 monthly income pays MXN 7,500 ISR (MXN 100,000 × 0.2500 × 30 percent). If the prior year had no profit, the corporation uses the coefficient from the most recent profitable year within the past five years. Most foreign owners rent as individuals under the 25 percent flat ISR withholding; corporations suit high-deduction vacation-rental businesses where operating expenses and depreciation reduce profit below the 25 percent flat rate.