Mexico: Tax incentives for key sectors of the export industry
The decree granting tax incentives to key sectors of the export industry became effective 12 October 2023.
Tax incentives for key sectors of the export industry
The decree granting tax incentives to key sectors of the export industry was published in the official gazette on 11 October 2023 and became effective 12 October 2023.
The incentives granted consist of:
- Election to immediately deduct 59-89% of investment in new fixed assets (depending on the type of investment) acquired from 12 October 2023 until 31 December 2024
- Additional deduction equal to 25% of increased expenditure on training (compared to fiscal years 2020, 2021 and 2022) during fiscal years 2023, 2024 and 2025
Taxpayers engaged in the production and export of the following goods are eligible for the incentives:
- Products intended for human and animal consumption
- Fertilizers and agrochemicals
- Raw materials for the pharmaceutical industry and pharmaceutical preparations
- Electronic components, such as single or charged boards, circuits, capacitors, capacitors, resistors, connectors and semiconductors, coils, transformers, harnesses, and modems for computer and telephone
- Machinery for watches, measuring, control and navigation instruments, and electronic medical equipment, for medical use
- Batteries, accumulators, batteries, electrical conduction cables, plugs, contacts, fuses and accessories for electrical installations
- Gasoline, hybrid and alternative fuel engines for cars, vans and trucks
- Electrical and electronic equipment, steering systems, suspension, brakes, transmission systems, seats, interior accessories and die-cut metal parts, for cars, vans, trucks, trains, ships and aircraft
- Internal combustion engines, turbines and transmissions, for aircraft
- Non-electronic equipment and apparatus for medical, dental and laboratory use, disposable material for medical use and optical articles for ophthalmic use
- Copyrighted cinematographic or audiovisual works
Read a October 2023 report prepared by the KPMG member firm in Mexico
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