On October 11, 2023, a decree was published in the Official Federal Gazette that grants the following tax benefits to key sectors of the export industry:
- An immediate deduction of the investment in new fixed assets, acquired from October 11, 2023 to December 31, 2024, applying the percentages established in the decree instead of applying the maximum percentages of authorized deductions established in the Income Tax Law.
- A 25% additional deduction of the increase in training expenses for employees in fiscal years 2023, 2024 and 2025.
The benefits apply to corporations that pay taxes under the terms of titles II or VII, chapter XII, of the Income Tax Law, and to individuals who pay taxes under the terms of title IV, chapter II, section I, when they dedicate themselves to the production, transformation or industrial manufacturing, and also exportation, of the following goods:
- Human and animal nutrition products.
- Fertilizers and agrochemicals.
- Raw materials for the pharmaceutical industry and pharmaceutical preparations.
- Electronic components, such as simple or prepaid cards, circuits, capacitors, resistors, connectors and semiconductors, coils, transformers, cable harnesses and modems for computers and telephones.
- Machinery for watches, measuring, control and navigation instruments, and electronic medical equipment.
- Batteries, accumulators, power units, electrical wires, plugs, contacts, fuses and accessories for electrical installations.
- Gasoline, hybrid and alternative fuel engines for cars, small and larger trucks.
- Electrical and electronic equipment, steering systems, suspensions, brakes, transmission systems, seats, interior accessories and die-cast metal parts for cars, small and larger trucks, trains, ships and aircrafts.
- Internal combustion engines, turbines and transmissions for aircrafts.
- Non-electronic equipment and devices for medical, dental and laboratory use, disposable medical material and optical ophthalmic items.
- Cinematographic or audiovisual work production protected by copyright under the terms of the applicable regulations.
Since the decree has already been published, the aforementioned taxpayers can now benefit from its tax benefits, thus favoring their cash flow and the establishment of their operations in Mexico.
At Jáuregui y Del Valle, S.C., we are at your disposal if you require additional information related to this communication.
If you have any questions regarding this client alerts, please don’t hesitate to contact our tax team.
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