Why businesses may need to reconsider their Maquiladora tax regime structures
A large portion of the manufacturing industry in Mexico is structured under the Maquiladora tax regime (MTR), which is an optional tax regime under which a principal’s ownership of machinery and equipment in Mexico does not create a fixed place of business in Mexico for tax purposes. The transfer pricing calculations of the MTR differ from those applicable to taxpayers operating under the general tax regime (GTR), which are aligned with the OECD transfer pricing guidelines.
Read a September 2024 report* prepared by KPMG LLP tax professionals that explains recent Mexican tax reforms and why businesses may need to reconsider their MTR structures and evaluate whether restructuring into the GTR would be advisable.
* This article originally appeared in Tax Notes International (September 9, 2024) and is provided with permission.