On 5 June 2023, the Government of Mexico announced a decree introducing tax incentives for companies that decide to invest in Interoceanic Corridor’s development hubs. The decree aims to promote economic development in the disadvantaged southeast region.
Important tax incentives will be offered to companies that carry out productive economic activities in the development hubs. These include:
- The initial incentive offers a complete waiver of Income Tax (ISR) for the initial three years of business operation. From the fourth to the sixth year, companies will only be required to pay 50% of the ISR. If the specified employment goals outlined in the relevant guidelines are achieved, this reduction can be as high as 90%.
- Opportunity for accelerated depreciation of investments during the first six years of operation.
- The exemption from Value Added Tax (VAT) is applicable to activities conducted within the development poles, as well as transactions between these poles. Additionally, there is an opportunity to reclaim the VAT paid on purchases made outside the poles for a duration of four years.
In addition, companies will be able to access already existing benefits in terms of foreign trade, such as VAT exemption on temporary imports of inputs, the 0% rate on the export of goods or services and administrative facilities that reduce costs.
