Sheinbaum issues decree that exempts violent video games from IEPS

The controversial 8 percent tax on violent video games was not applied yesterday, January 1, since the day before President Claudia Sheinbaum published a decree in the Official Gazette of the Federation (DOF) in which it established a 100 percent fiscal stimulus that avoids the collection of that tax established in the Income Law of 2026.

Days before, the President of the Republic declared that this special tax on products and services (IEPS) was being withdrawn due to the complexity of establishing the degree of violence in video games, in addition to the fact that the tax does not represent a relevant tax collection.

The first option was for Congress to modify the Income Law, but since there was no time to do so, since both chambers are in recess and the Income Law would come into force on January 1, the president used her power and issued the respective decree, on December 31 in the DOF.

It establishes that those who sell or distribute video games “with violent or extreme content or for adults, not suitable for minors under 18 years of age”, as well as taxpayers who provide access or download of the aforementioned video games via digital service, including those provided through digital intermediation platforms, “that apply the aforementioned fiscal stimulus, will not pay any amount for said tax for that activity.”

For these taxpayers “it is also considered convenient to relieve them of the tax obligations established in articles 5-A BIS and 20-A of the IEPS Law only with respect to the special tax on production and services.”

It is specified, however, that “said tax incentive will be creditable against the IEPS that must be paid for the aforementioned activities and will only be appropriate as long as no amount is transferred to the purchaser of the good or service for the aforementioned tax, in order to prevent the beneficiaries of the fiscal stimulus from obtaining an undue benefit.

“Likewise, the application of the stimulus will not give rise to any refund or compensation and the Tax Administration Service is empowered to issue the general rules necessary for the due and correct application of the fiscal stimulus, as well as the other provisions of this decree.”