Nearshoring. Rules for the application of the tax benefits of the development poles of the Isthmus of Tehuantepec.

Mexico City, December 14, 2023.

On December 5, 2023, the Ninth Resolution of Amendments to the Tax Rules for 2023 was published, adding the Chapter 11.11. which includes new provisions for the application of tax benefits regarding to the economic activities carried out within the Development Pole of the Isthmus of Tehuantepec in connection with Nearshoring opportunities.

In this regard, the new rules provide detailed guidelines for the application of incentives in connection with Income Tax and Value Added Tax, as well as for the estimate monthly payments of individuals and corporations, forfeiture of the right to the incentive, the control of goods, the issuance of tax invoices («CFDI») and the procedures related to the tax incentive on final monthly payments of Value Added Tax and estimate payments of Income Tax.

In this sense, the main rules enacted are the following:

Application of the Income Tax and Value Added Tax incentives starting from the month in which the taxpayers obtain the certificate that proves the fulfillment of the requirements.

Lose of the right to apply the tax incentives if they are not applied in the relevant tax return.

Support documentation of income and deductions for productive economic activities carried out within the Development Poles of the Isthmus of Tehuantepec.

Documentation to be shown and kept to proof that the fixed assets acquired are new.

Dates of cancellation or revocation of the certificate to access benefits.

Control of the exit, entry and transfer of goods within the Development Pole of the Isthmus of Tehuantepec.

Rules and additional requirements for the issuance of invoices regarding the performance of activities within the Development Pole of the Isthmus of Tehuantepec.

Guidelines for filing Income Tax and Value Added Tax returns.

The lawyers of the Tax practice of our Firm will be pleased to further assist you with any questions you might have regarding the application of the tax benefits contained in the Decree that promotes the investment of taxpayers that carry out productive economic activities within the Development Poles of the Isthmus of Tehuantepec, published on June 5, 2023 or the rules issued for such purposes.

Sincerely yours,

Gerardo Nieto

nieto@basham.com.mx