South Korea seeks Mexico tax relief for 562 firms
National Tax Service Commissioner Lim Kwang-hyun highlighted value-added tax refund delays and double taxation in talks with Mexican tax chief Antonio Martinez Dagnino this week.
Seoul seeks tax support for firms in Mexico
South Korea's National Tax Service (NTS) has requested that Mexico provide tax support for Korean companies operating within its borders. NTS Commissioner Lim Kwang-hyun raised the issue during the first high-level bilateral meeting with Mexico's Tax Administration Service (SAT) in Mexico City on Tuesday, 22 September.
Lim met with his Mexican counterpart, SAT Commissioner Antonio Martinez Dagnino, to discuss challenges faced by Korean entities. The NTS confirmed these discussions on Wednesday, 23 September.
Addressing VAT refunds and double taxation
Commissioner Lim detailed specific operational hurdles for Korean businesses, including prolonged delays in value-added tax (VAT) refunds and instances of double taxation. He sought administrative assistance to ensure greater stability for these companies, allowing them to enhance their contributions to the Mexican economy.
In response, Commissioner Dagnino pledged that the SAT would actively engage with Korean businesses to resolve tax-related issues. He also committed to providing comprehensive tax administration support, including guidance materials on corporate income tax filing.
Korea's manufacturing footprint in Mexico
Mexico serves as a vital production and export base for Korean companies aiming to penetrate the North American market, with bilateral trade experiencing steady expansion. The NTS reported that as of 2025, 562 Korean companies had established operations in Mexico. These firms are primarily concentrated in manufacturing sectors such as automobiles, electronics, and steel.
Prior to the official meeting, Commissioner Lim also hosted a roundtable with Korean businesses in Mexico, which included attendance from Carlos Eduardo Gonzales Gamero, head of SAT's Transfer Pricing Audits.
The commitment from Mexico's tax authority to address specific concerns like VAT refunds and double taxation could significantly improve the operational environment for Korean manufacturers. Enhanced administrative support may reduce compliance costs and improve cash flow for the 562 companies already established there.
This development offers a clearer path for current investments and may encourage further expansion of Asian manufacturing into Mexico, particularly for those seeking stable access to the North American market. Companies should monitor the practical implementation of SAT's pledges.
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