To provide incentives to the country’s export companies the President of Mexico has announced extension of the corporate tax break under the IMMEX scheme to December 31, 2013. The scheme has now been extended for another two years, from their previous expiry date due on December 31, 2011 to December 31, 2013, through a decree signed by the President of Mexico.
According to the IMMEX scheme companies are exempted from ‘permanent establishment’ rules and pay just 20% of the corporate flat tax. IMMEX companies also benefit from simplified transfer pricing procedures. In order to avail of this benefit of tax break about 30% of production has to be exported by companies.
