The Government of Mexico issued a decree on 11 October to promote
investments through nearshoring, allowing the accelerated deduction of investments,
from 56 percent to 89 percent in 2023 and 2024. This decree establishes tax
incentives for companies wishing to relocate anywhere in Mexico and applying to ten
key sectors of the Mexican economy. The decree provides the previous incentive to
taxpayers who are engaged in any of the following activities:
- Products intended for human and animal nutrition.
- Fertilizers and agrochemicals.
- Raw materials for the pharmaceutical industry and pharmaceutical
preparations. - Electronic components, such as simple or complex circuit cards, circuits,
capacitors, condensers, resistors, connectors and semiconductors, coils,
transformers, harnesses and computer and telephone modems. - Machinery for watches, measuring, control and navigation instruments, and
electronic medical equipment for medical use. - Batteries, accumulators, electrical conduction cables, plugs, contacts,
fuses, and accessories for electrical installations. - Gasoline, hybrid and alternative fuel engines for use in cars, vans, and
trucks. - Electrical and electronic equipment, steering systems, suspension, brakes,
transmission systems, seats, interior accessories, and die-cast metal parts, for
automobiles, vans, trucks, trains, ships, and aircraft. - Internal combustion engines, turbines, and transmissions for
aircraft. - Non-electronic equipment and devices for medical, dental and laboratory
use, disposable material for medical use and optical items for ophthalmic
use.
The tax incentive also is granted to taxpayers who are engaged in the production of
copyrighted cinematographic or audiovisual works that are that are exported.
All taxpayers who apply the benefits of this decree can claim an additional 25% of
their incremental expense of training for each employee during the years 2023, 2024,
and 2025. The incremental is measured considering the average training expense of
years 2020, 2021 and 2022.
This decree represents a good opportunity for companies that are involve in
exporting activities in Mexico. Please feel free to reach out to Germán Vega with any
additional requests for information.