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Mexico: New tax incentives under “Plan Mexico”

Accelerated tax depreciation and additional deduction for training and innovation

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January 21, 2025

Mexico has announced new tax incentives as part of “Plan Mexico,” an economic initiative introduced by the president. The incentives were formalized through an executive decree published in the Diario Oficial de la Federación.

The decree includes two main tax incentives:

  • Accelerated tax depreciation: This allows for accelerated tax depreciation on investments in new fixed assets acquired from the effective date of the decree until September 30, 2030.
  • Additional deduction for training and innovation: A 25% additional deduction is available for expenses related to personnel training and innovation incurred during the fiscal years 2025-2030.

Access to these incentives requires meeting specific criteria, including obtaining a favorable opinion from an evaluation committee established for this purpose.

 

For more information, contact a KPMG tax professional:

Michel Sanchez O’Sullivan | michelosullivan@kpmg.com

Jorge Caballero | jorgecaballero@kpmg.com.mx

Armando Lara | armandolara@kpmg.com.mx

Manuel Rico | rico.manuel@kpmg.com.mx

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