Mexico follows the world income tax system. In article 1 of the ISR Law, the subjects of Income Tax are defined as follows: 

1. The residents of Mexico, in respect to all of their income; regardless of the location of the source of such income. 
2. The foreign residents who have a permanent establishment in the country, in respect to the income that can be attributed to such establishment. 
3. The foreign residents, in respect to the income from wealth sources located in national territory, when they don’t have a permanent establishment in the country or when such income can’t be attributed to such establishment.