Mexico releases general rules on R&D tax credit

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On February 28 2017, a general rule was published in the Official Gazette. This rule govern Mexico’s R&D (research and development) tax credit. The incentive for the tax credit was resumed within the scope of the tax reform of 2017. Taxpayers may claim a credit against the income tax liability equal to 30% of the investments and expenses for technological R&D in Mexico and is attributable to the income tax due for the respective fiscal year (FY). Taxpayers calculate the credit based on the incremental expenses and investments made in the current year as compared to the previous three tax years. Taxpayers have to submit their applications between 1 April and 31 May for fiscal year 2017.

In addition to R & D credits, the tax package provides tax incentives in the form of tax credits for investments or contributions to projects in areas such as fees of external researchers, technical training, specialized lab equipment, the performing arts, highly specialized sports and high-performance athletics and public charging stations for electric vehicles. As the rules for the R & D credit, the tax package requires the establishment of a committee to determine the types of expenses that qualify for tax credits.

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