Mexico has not yet passed a specific law exclusively covering cryptocurrency taxation for individuals. However, the Servicio de Administración Tributaria (SAT), Mexico's tax administration, applies the rules of the Income Tax Law (LISR). Cryptocurrencies are considered intangible assets, and gains fall under the "alienation of goods" regime (Enajenación de Bienes).

Although there is no bespoke "crypto" framework, the obligation to declare gains is absolute in Mexico. This guide explains how general tax law applies to your digital assets and how to set up your Waltio account to generate a compliant report.

Your net gains (Selling Price - Purchase Price) realized from selling cryptocurrencies are added to your other income for the year (such as your salary).

The SAT then applies the progressive Income Tax scale (ISR - Impuesto Sobre la Renta). This rate varies according to your total income bracket, ranging from 1.92% for the lowest incomes up to 35% for the highest brackets. To accurately determine your capital gain, the FIFO (First-In, First-Out) method is the standard accounting practice accepted by the Mexican tax authorities.

Loss Handling: Under the alienation of goods regime, capital losses can generally be declared and used to offset capital gains realized on similar transactions within the same fiscal year.

The Mexican tax administration equates the exchange of one asset for another (one cryptocurrency for another) to a barter operation, called permuta in Mexican law. Consequently, exchanging Bitcoin (BTC) for Ripple (XRP) or a stablecoin is a taxable event. It triggers the calculation of capital gain or loss at the exact moment of the exchange.

Excellent news: Waltio's behavior is perfectly aligned with Mexican law.

In the absence of specific regulations, general tax doctrine in Mexico indicates that income generated from mining, staking, or airdrops falls under the "Other Income" regime (Otros Ingresos). They are considered taxable at the time of receipt, valued at their market value in Mexican Pesos (MXN) on the exact day they are credited to your wallet.

To simplify overall accounting tracking on the platform, Waltio applies a specific default methodology:

Practical Consequence: Taxation is deferred. Only when you decide to sell these tokens (for another crypto or fiat) will the operation become taxable. Since the acquisition price is 0, the entire proceeds of the sale will be considered a capital gain, taxed according to your ISR bracket.

To ensure taxation is taken into account upon receipt (Strict SAT Compliance): If you wish to declare this income in the exact year it is received, a manual process is required on Waltio. You will need to individually modify each passive gain transaction to enter its acquisition price (the market price of the token on the day it was received). Thus, the acquisition value will no longer be 0, and the operation will be recorded as immediate income.

Any "alienation" to the traditional economy triggers the tax calculation:

As soon as a transaction corresponds to one of these events, Waltio automatically calculates the profit generated using the FIFO method.

Disclaimer: This guide is provided for informational and educational purposes only. Legislation surrounding digital assets in Mexico relies on the interpretation of existing tax laws. Waltio does not provide tax or legal advice. We strongly recommend consulting a certified Public Accountant (Contador Público) in Mexico to validate your declaration.