IPAB fees cannot be deducted from taxes

Starting next year, banks operating in the country will no longer be able to deduct from their taxes the frequent contributions they make to the Institute for the Protection of Bank Savings (IPAB).

This was announced by Mexican President Claudia Sheinbaum Pardo on Friday at her morning press conference, where she explained that the measure is included in the 2026 Economic Package to be presented this Monday.

The president recalled that the bank debt, which arose in the first half of the 1990s, was private and became public. It continues to be paid.

"There's a small portion that the banks contribute (to pay off that debt), and you won't believe it: it's tax-deductible. The vast majority of the IPAB contributions come from the people of Mexico. There's another portion that, during (Enrique) Peña Nieto's time, was opened up to bonds, but it turns out the small portion the banks contribute is tax-deductible, and they won't be tax-deductible starting next year," he emphasized.

He emphasized that approximately 10 billion pesos could be recovered by eliminating this deduction. "Edgar Amador (Secretary of the Treasury) will provide the details on Tuesday," he explained.

He emphasized that there can't be a tax deduction for a contribution made to pay the debt of the Banking Fund for the Protection of Savings (FOBAPROA), now IPAB.

"How are you going to deduct the taxes? You have to pay taxes on that," he said.

It has already been discussed with some banks

Claudia Sheinbaum stated that this is an issue she has already discussed with some bank representatives, so she is confident there will be cooperation.

"If the banks listen to me, it's something I even discussed with some of the bank owners at the time, but I think it's fair that this deduction not exist. It's already stated in the Revenue Law. I think all the banks will cooperate and agree," he emphasized.

How much do they contribute? banks to IPAB?

In addition to managing deposit insurance, which guarantees bank users' savings up to the equivalent of 400,000 Investment Units (UDIs), which today are equivalent to almost 3.4 million pesos per person, in the event of a financial institution experiencing problems, the Institute for the Protection of Bank Savings (IPAB) also assumes the financial obligations arising from the system support programs implemented since 1995, that is, the debt incurred over the past three decades.

To meet these obligations, the IPAB receives resources from the fees that banks are required to contribute, but it also receives fiscal transfers and other recovery amounts.

Almost $388 billion of contributions

According to information from the IPAB itself, between 1999 and 2024, it received nearly 388 billion pesos in installments contributed by banks, representing an average annual real growth of 3.88 percent.

In 2024 alone, due to increased bank deposits, a historic amount of 35.074 billion pesos in bank installments was received, representing a real annual growth of 4.6% compared to 2023.

And in the first quarter of 2025, ordinary contributions made by banks to the IPAB totaled almost 9.49 billion pesos.

BBVA, Banorte, and Santander (the three largest banks operating in the system) contributed just over 2.182 billion, 1.268 billion, and 1.153 billion pesos, respectively, in this last period—that is, almost half of the total contributions from the sector in the first quarter of this year.

Information from the IPAB indicates that approximately a quarter of the fees paid by banks (once administrative and operating expenses are covered) go to the Bank Savings Protection Fund (FPAB), which aims to ensure that the money deposited by individuals in banks remains protected in the event of an institution facing financial problems.

Thus, at the end of 2024, the FPAB had a historical balance of 106,294 million pesos.

Debt amounts to billion pesos

According to the IPAB's latest annual report, while the IPAB's debt has decreased as a percentage of Gross Domestic Product (GDP) and in 2024 the proportion was 2.88% compared to 10.8% in 1999, at the end of last year it amounted to around one trillion pesos.

The document specifies that the IPAB finances the payment of its remaining debt through three main sources: installments contributed by banks, fiscal transfers from the Federal Government from the Bank Savers Support Program (PAAB) under Branch 34, and recovery amounts.

"Through the efficient use of its own and budgetary resources, the financial strategy ensures that IPAB's debt does not grow in real terms; that is, as the economy grows, the debt represents a decreasing percentage of GDP," the institute emphasizes.

What is delivered in the 2026 Economic Package?

General Criteria of Economic Policy

They reveal the government's expectations for the economy for the coming year, including GDP, deficit, oil prices, and inflation.

Initiative for the Federal Revenue Law

In it, the government details how much money it will receive. It is known that the deductibility of Fobaproa debt will be eliminated by 2026.

Draft Federal Expenditure Budget

In this document, the government details how public resources will be spent.

Tax Miscellany

It consists of a set of modifications and additions to tax rules. An increase in the IEPS tax on sugary drinks is expected.

Initiative to Reform the Customs Law

Seeks to increase tax collection at Mexican customs.