Mexico City, July 9, 2024

On June 28, 2024, the Decree that grants tax incentives to taxpayer engaged in productive activities in the welfare industrial zones of Progreso I and Mérida I, in the state of Yucatan was published in the Official Gazette of the Federation.

The productive activities benefiting from the decree cover 11 specific sectors:

  1. Electrical and electronics sector
  2. Semiconductors
  3. Automotive (electromobility)
  4. Auto parts and transportation equipment
  5. Medical devices
  6. Pharmaceuticals
  7. Agroindustry
  8. Equipment for the generation and distribution of electric power (clean energy)
  9. Machinery and equipment
  10. Information and communication technologies, and
  11. Metals and petrochemicals

Below are the most relevant points of the incentives granted:

  1. Income Tax:
  • A tax credit of 100% of the taxable due for the first three fiscal years, and 50% in the following three fiscal years, which can reach up to 90% if the minimum employment levels are exceeded. These incentives are not considered taxable income for the beneficiary.
  • Immediate 100% deduction of investments in new fixed assets used to carry out on productive activities in the mentioned zones for six fiscal years.
  • Value Added Tax:
  • A tax credit to 100% of the VAT due for the sale of goods, provide services or grant the use or temporary enjoyment of goods, creditable against the tax payable, if the tax will not be transferred to the purchaser of the goods or services, and they are used in the productive activities inside the mentioned zones.

Taxpayers must comply with different requirements established in the decree for the application of these incentives.

The lawyers of the tax area of the Firm are at your service to attend any questions regarding the application of the tax incentives established in this Decree or to assist you in your productive investment projects in this zone.

Sincerely yours,

Gerardo Nieto

Gil Zenteno

Alejandro Barrera

Víctor Barajas

Francisco Matus

Norberto Ruiz