Background and Relevance of Claudia Sheinbaum
Claudia Sheinbaum Pardo serves as the President of Mexico, a prominent figure in the country’s political landscape. As the head of government, she plays a crucial role in shaping policies and regulations that impact various sectors, including the entertainment industry. Her recent decision regarding video games has garnered attention and sparked discussions about the implications of this new tax policy.
The New Tax Stimulus on Violent Video Games
On December 31, 2025, President Sheinbaum Pardo published a decree in the Diario Oficial de la Federación (DOF) granting a 100% tax stimulus on the Impuesto Especial sobre Producción y Servicios (IEPS) applicable to violent, extreme, or adult-oriented video games that are not suitable for minors under 18 years old.
Implementation Details
This tax benefit will take effect on January 1, 2026, coinciding with the formal application of the newly established tax under the reform to the IEPS Ley published on November 7, 2025.
Who Qualifies for the Tax Stimulus?
The fiscal benefit targets two categories of taxpayers:
- Distributors of video games in physical format containing violent, extreme, or adult content.
- Digital platforms and service providers, both residing in Mexico or abroad without a local presence, that enable access or download of such video games within the country.
In both cases, the tax stimulus involves full accreditation of the IEPS caused, provided that the tax is not passed on to the end consumer. This measure aims to prevent any unfair advantages.
Clarifications on Obligations
The President’s office clarified that the tax stimulus does not exempt compliance with Value-Added Tax (VAT) obligations for the provision of digital services. Digital platforms must continue adhering to Chapter III Bis of the VAT Ley and other applicable provisions.
Rationale Behind the Decision
Earlier in the week, President Sheinbaum Pardo announced during her morning press conference that the video game tax would not be enforced, acknowledging the complexities involved in distinguishing violent content from non-violent content.
“It’s very difficult to differentiate between a violent video game and a non-violent one. So, how can you impose a tax on it? Who will determine that condition?” Sheinbaum Pardo explained, justifying the decision.
Key Questions and Answers
- Who is eligible for the 100% tax stimulus on violent video games?
The benefit applies to distributors of physical video games with violent, extreme, or adult content and digital platforms/service providers enabling access to such games within Mexico.
- When does this tax stimulus take effect?
The policy will be implemented on January 1, 2026.
- Does the tax stimulus exempt obligations related to VAT for digital services?
No, compliance with Value-Added Tax (VAT) obligations for digital services remains mandatory.
- Why was the video game tax ultimately not enforced?
President Sheinbaum Pardo recognized the challenges in distinguishing violent content from non-violent content, making enforcement impractical.
