The Mexican tax reform of 2014 has introduced a number of important changes for maquiladora enterprises. The changes apply to companies that are operating under the requirements of the Decree for the Promotion of the Manufacturing, Maquiladora and Export Services Industry (IMMEX Decree) and the changes also apply to IMMEX companies that are regarded as maquiladoras for income tax purposes (these are companies that perform operations of transformation or repair as part of a “consignment” arrangement with a foreign principal company).
Although the tax reform generally became effective on 1 January 2014 there are transitional provisions for some of the new rules applicable to IMMEX/maquiladora companies and these various transitional rules are to be implemented by certain specified deadlines during 2014.
The actions that maquiladora companies need to take include certification for VAT and excise tax purposes. Enterprises that are not certified will from 1 January 2015 need to pay tax on temporary imports. Compliance is also required with the new machinery and equipment ownership rules. Under the “grandfathering” provisions the deadline would be 31 December 2016. There is also a requirement for maquiladoras to cease earning non-maquiladora related productive income by 1 July 2014.
