Mexico offers tax incentives to promote coastal investment

On Wednesday, Mexico issued a decree to increase investment through the so-calledcoastal installation“by providing tax incentives to companies that move their operations into the country, mainly in the export industry.

He Deputy Minister of Finance Gabriel Yorioreported in a publication on the social network X that the benefits will apply to 10 sectors of the economy. economyincluding production of components, semiconductors, batteries, engines, fertilizers, products pharmacistsmedical instruments and agro-industry.

“These incentives are available in all states and municipalities in the country, extending the window of opportunity by one year for interested companies,” the official said.

The president Andres Manuel Lopez ObradoHe said Mexico should benefit from steps taken by global industry to reduce dependence on China, but critics say his administration has been slow to create clear incentives to encourage investment.

His administration also increased investor uncertainty by seeking to increase public sector control of the energy market at the expense of private companies, sparking trade disputes with USA and Canada.

Benefits published in the Official Gazette include: deductions accelerated investment reductions of between 56% and 89% in 2023 and 2024, plus an additional 25% deduction over three years for accounts worker training, Yorio said. (Reuters)

See the full text of the decree below:

Decree of the Ministry of Finance on Fiscal Stimulus (Nearshoring) from Aristegui Noticias on Scribd

Source: Aristegui Noticias

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