The federal government published a decree to apply a series of tax incentives to foreign companies that want to establish themselves in Mexico, an economic phenomenon known as nearshoring.
The tax incentives consist of an immediate deduction of between 56 and 89 percent of the Income Tax (ISR) on investments made by these companies, such as the acquisition of new equipment or industrial machinery.
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In addition, there will be an additional 25 percent deduction for three years for worker training expenses, focusing on the development of human capital, as long as it is technical or scientific knowledge linked to the taxpayer’s activity.
“Today, the Government of Mexico issues a decree to promote investments due to the nearshoring phenomenon. These incentives are available in all states and municipalities of the country, extending the window of opportunity for one year for interested companies,” commented Gabriel Yorio González, Undersecretary of the Treasury, through social networks.
The incentives will be for those companies dedicated to the production, elaboration or industrial manufacturing of human or animal food products, fertilizers or agrochemicals, pharmaceutical supplies, electronic components, and machinery for watches, measuring, control and navigation instruments, and medical equipment.
Those companies that manufacture batteries, contacts, fuses or electrical products, gasoline engines, whether fuel or hybrid, engines or turbines for aircraft, and non-electronic equipment for medical, dental, laboratory and optics.
Likewise, there will be a benefit for the film industry through the films or productions that are exported.
According to the publication made in the Official Gazette of the Federation (DOF), all stimuli will be valid for the fiscal years of 2023 and 2024.
It was specified that only exporting companies that belong to the sectors identified as key will be able to access, since “foreign companies may perceive Mexico as a favorable destination to establish their operations and take advantage of the tax benefits granted.”
Taxpayers interested in them must register all the investments they make, detailing the application of said incentives and including some proof that supports that the inputs were applied for the described activity.
“It is pertinent to grant the benefits established in this decree to companies that seek to optimize their operations through the nearshoring strategy; This allows companies that are in similar conditions to access these benefits and thus encourages competition and investment in strategic sectors,” the decree concluded.
2023-10-11 16:29:38
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