The President of the National Council of the maquiladora industry has commented that the sector has largely settled its differences with the Mexican government over tax issues, following the changes to the Mexican Government’s tax reform bill which came into effect on January 1, 2014.
Although the cancellation of a planned cut in the 30 percent corporate income tax, and abolition of the 17.5 percent alternative minimum corporate tax (IETU), will cause some difficulties, other changes that could have seriously affected Mexico’s maquiladora tax regime were omitted from the final version of the legislation.
Maquiladoras are Mexican companies that process, transform, assemble or repair imported materials, parts and components into finished goods that are subsequently exported out of the country. They have been permitted to import the goods needed to carry out their production activities free of import duty, import value added tax and excise taxes.
It has also been agreed that goods produced within a maquiladora that are sold to non-residents would remain tax exempt, as long as it obtains an annual certificate from the tax authorities that validates that it is properly complying with the maquila regime.
