On June 5, 2023, a significant milestone was achieved for the Isthmus of Tehuantepec region in Mexico. On this date, the “Decree to Promote Investment by Taxpayers Engaging in Productive Economic Activities within the Development Poles for the Wellbeing of the Isthmus of Tehuantepec” was published in the Official Gazette of the Federation. This decree primarily aims to drive a new model of economic growth that benefits the entire population of the Isthmus of Tehuantepec, with a focus on attracting new investments in industrial activities to spur economic growth in the region.
Eligible Economic Activities
The decree outlines a broad range of economic activities eligible to receive tax incentives. These activities include:
- Electrical and electronic
- Semiconductors
- Automotive (with an emphasis on electromobility)
- Automotive parts and transportation equipment
- Medical devices
- Pharmaceuticals
- Agro-industry
- Electric power generation and distribution equipment (clean energies)
- Machinery and equipment
- Information and communication technologies
- Metals and petrochemical
- Any other economic activity determined by the Board of Directors of the Interoceanic Corridor of the Isthmus of Tehuantepec.
Requirements for Obtaining Tax Benefits
To access the tax benefits provided by this decree, companies must meet specific requirements, including:
- Being up to date with their tax obligations.
- Holding a valid concession title or owning property within one of the Development Poles for Wellbeing.
- Presenting the investment project for which the concession title was granted.
- Having a tax domicile in the Wellbeing Development Pole where they conduct productive economic activities.
Highlighted Tax Incentives
The decree offers several significant tax incentives for companies that meet the aforementioned requirements. Some of the most noteworthy incentives include:
- A tax credit equivalent to 100% of the Income Tax (ISR) incurred for three fiscal years, starting from the issuance of the certificate by the Ministry of Finance and Public Credit. This credit is reduced to 50% of ISR in the subsequent three fiscal years or up to 90% if employment levels exceed minimum thresholds.
- Taxpayers obtaining the Ministry of Finance and Public Credit certificate can claim an immediate deduction of 100% of the original investment in new fixed assets used in the Wellbeing Development Poles for their productive economic activities.
- A tax credit equivalent to 100% of the Value Added Tax (IVA) due on the sale of goods, provision of independent services, or the granting of temporary use or enjoyment of goods, for four years from the decree’s effective date.
Registration of Interested Parties and Orientation Sessions
For companies interested in taking advantage of these tax incentives, a process has been established, including registration of interested parties and orientation sessions. The registration of interested parties can be completed through the form available at https//www.gob.mx/ciit via email at polosdesarrollo@ciit.gob.mx from June 26 to June 30, 2023.
Orientation sessions, scheduled for July 26 and 27, 2023, are designed to provide general information about the bidding process.
Facilitation of Facilities and Tax Incentives
Furthermore, the Interoceanic Corridor of the Isthmus of Tehuantepec can promote, before federal and municipal entities, the necessary actions for these entities to provide facilities and tax incentives to companies engaging in productive economic activities within the Development Poles for Wellbeing.
This decree represents a significant opportunity to promote economic growth in a region seeking to diversify its industrial base and generate employment. Companies meeting the requirements and taking advantage of these tax incentives can play a vital role in the economic development of the Isthmus of Tehuantepec.
Stay informed about the latest updates and resources related to this decree by visiting our website regularly. If you have any questions or need assistance with the process, please do not hesitate to get in touch with us. We are here to help you make the most of this opportunity and contribute to the economic well-being of the Isthmus of Tehuantepec region.
