On 11 October 2023, the Mexican government published a Decree in the Official Gazette offering tax incentives to vital sectors of the export industry. The Decree came into force on 12 October 2023.

Eligible taxpayers

Companies that manufacture and export the specified products can take advantage of tax incentives:

  • Products intended for human and animal nutrition;
  • Fertilizers and agrochemicals;
  • Raw materials for the pharmaceutical industry and pharmaceutical preparations;
  • Electronic components, such as simple or loaded cards, circuits, capacitors, capacitors, resistors, connectors and semiconductors, coils, transformers, harnesses and modem for computer and telephone;
  • Machinery for watches, measuring, control and navigation instruments, and electronic medical equipment, for medical use;
  • Batteries, accumulators, cells, electrical conduction cables, plugs, contacts, fuses and accessories for electrical installations;
  • Gasoline, hybrid and alternative fuel engines for cars, vans and trucks;
  • Electrical and electronic equipment, steering systems, suspension, brakes, transmission systems, seats, interior accessories and die-cast metal parts, for automobiles, vans, trucks, trains, ships and aircraft;
  • Internal combustion engines, turbines and transmissions, for aircraft;
  • Non-electronic equipment and devices for medical, dental and laboratory use, disposable materials for medical use and optical articles for ophthalmic use; and
  • cinematographic or audiovisual works.

Tax benefits

  • Deductions in training expenses: 25% of the excess training expenses paid in 2023 to 2025 over the average expense paid in 2020 to 2022.
  • Depreciation deduction to new assets: 56% up to 89% of the expenditure, depending on specific assets (acquired from 12 October 2023 until 31 December 2024) listed.

Requirements to access tax incentives

  • Taxpayers must comply with the deductibility requirements set forth in the Income Tax Law;
  • Registration in the Federal Taxpayer Registry with an active tax mailbox;
  • Maintenance of a favorable tax compliance opinion from the Mexican Tax Administration (SAT);
  • Submission of a formal notice electing to utilize the tax benefits;
  • Clear and distinct accounting record-keeping for the application of the tax benefits.