{"id":19672,"date":"2019-01-10T18:49:21","date_gmt":"2019-01-11T00:49:21","guid":{"rendered":"http:\/\/www.basham.com.mx\/Blog\/?p=1737"},"modified":"2019-01-10T18:49:21","modified_gmt":"2019-01-11T00:49:21","slug":"tax-incentives-to-eliminate-the-tax-withholding-on-interest-paid-abroad-and-to-encourage-productive-investment-projects-in-mexico","status":"publish","type":"post","link":"https:\/\/basham.com.mx\/en\/tax-incentives-to-eliminate-the-tax-withholding-on-interest-paid-abroad-and-to-encourage-productive-investment-projects-in-mexico\/","title":{"rendered":"TAX INCENTIVES TO ELIMINATE THE TAX WITHHOLDING ON INTEREST PAID ABROAD AND TO ENCOURAGE PRODUCTIVE INVESTMENT PROJECTS IN MEXICO"},"content":{"rendered":"<p class=\"wp-block-paragraph\">TAX INCENTIVES TO ELIMINATE\nTHE TAX WITHHOLDING ON INTEREST PAID ABROAD AND TO ENCOURAGE PRODUCTIVE INVESTMENT\nPROJECTS IN MEXICO<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">An executive order to\neliminate the income tax withholding for interest paid abroad on bonds listed\nin a stock exchange, as well as to grant tax incentives to taxpayers investing\nin a capital market in Mexico was published in the Federal Official Gazette on\nJanuary 8, 2019.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The following tax incentives were created for\nproductive investment projects:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Corporate Bonds.<\/strong><\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">A tax incentive is granted to non-residents consisting\nof a tax credit equivalent to 100% of the income tax required to be withheld to\nnon-residents for interest paid on bonds listed in any authorized stock\nexchange.&nbsp; This tax incentive may only be\ncredited against the income tax that should have been withheld and paid on such\ninterest. It is to be pointed out that this tax incentive should not be accrued\nfor income tax purposes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The purpose of this tax incentive is to promote\ninvestment in Mexican debt instruments by non-Mexican investors, with no\nwithholding tax requirement.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Profits realized from the transfer of shares acquired\noutside recognized markets.<\/strong><\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">From 2019 through 2021 fiscal years, Mexico residents\nand non-residents holding shares issued by Mexican companies may apply a 10%\ntax rate to any profit realized from the transfer of such shares under an\ninitial public offering, provided such shares may have not been previously\nlisted in any authorized stock exchange, and comply with certain requirements\nand restrictions applicable to the sale of shares representing a controlling\ninterest in the company or protected crossing trades, or share-for-share\ntransactions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This tax incentive will also be applicable to the\ntransfer of shares representing a controlling interest at a stock exchange,\nwhen at least 20% of the shares of a Mexican company has been acquired by a\ncapital risk investment trust (venture capital), and the certificates issued by\nthe trust are placed among the public at large and the transfer is due to a\ndivestment arising from a transition process by the trust to lead to the public\noffering of the company\u2019s shares.&nbsp; The\ntax incentive is applicable if no investment vehicle, other than a capital risk\ninvestment trust, acquires the shares of the Mexican company, provided certain\nrequirements are met.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The lawyers of the tax area of our Firm will be\npleased to provide you with further information you may need on how to apply\nand obtain the important benefits arising from these tax incentives.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"text-align:center\">SINCERELY<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<table class=\"wp-block-table\"><tbody><tr><td>\n  Lic.\n  Gerardo Nieto&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \n  <\/td><td>\n  nieto@basham.com.mx \n  <\/td><\/tr><tr><td>\n  Lic.\n  Gil Zenteno\n  <\/td><td>\n  zenteno@basham.com.mx\n  <\/td><\/tr><tr><td>\n  Lic.\n  Alejandro Barrera\n  <\/td><td>\n  barrera@basham.com.mx\n  <\/td><\/tr><tr><td>\n  Sergio Barajas\n  <\/td><td>\n  barajas@basham.com.mx\n  <\/td><\/tr><tr><td>\n  V\u00edctor Barajas\n  <\/td><td>\n  mbarajas@basham.com.mx\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"text-align:center\">Mexico City, January 10th, 2019. <\/p>","protected":false},"excerpt":{"rendered":"<p>TAX INCENTIVES TO ELIMINATE THE TAX WITHHOLDING ON INTEREST PAID ABROAD AND TO ENCOURAGE PRODUCTIVE INVESTMENT PROJECTS IN MEXICO An executive order to eliminate the income tax withholding for interest paid abroad on bonds listed in a stock exchange, as well as to grant tax incentives to taxpayers investing in a capital market in Mexico [&hellip;]<\/p>","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","footnotes":""},"categories":[1264,1280],"tags":[],"class_list":["post-19672","post","type-post","status-publish","format-standard","hentry","category-english","category-tax"],"_links":{"self":[{"href":"https:\/\/basham.com.mx\/en\/wp-json\/wp\/v2\/posts\/19672","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/basham.com.mx\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/basham.com.mx\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/basham.com.mx\/en\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/basham.com.mx\/en\/wp-json\/wp\/v2\/comments?post=19672"}],"version-history":[{"count":0,"href":"https:\/\/basham.com.mx\/en\/wp-json\/wp\/v2\/posts\/19672\/revisions"}],"wp:attachment":[{"href":"https:\/\/basham.com.mx\/en\/wp-json\/wp\/v2\/media?parent=19672"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/basham.com.mx\/en\/wp-json\/wp\/v2\/categories?post=19672"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/basham.com.mx\/en\/wp-json\/wp\/v2\/tags?post=19672"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}