Mexico City October 12th, 2023.
On October 11, 2023, the “DECREE granting tax incentives to key sectors of the export industry consisting of the immediate deduction of investment in new fixed assets and the additional deduction” was published in the Official Gazette of the Federation. of training expenses“ 1, which is aimed at legal entities that pay taxes in the general regime or simplified trust regime (RESICO), as well as individuals who obtain income from business or professional activities by the Tax Law on the Income (LISR), as long as they are dedicated to the production, processing or industrial manufacturing and export of the following goods:
1. Products intended for human and animal nutrition.
2. Fertilizers and agrochemicals.
3. Raw materials for the pharmaceutical industry and pharmaceutical preparations.
4. Electronic components, such as simple or loaded cards, circuits, capacitors, capacitors, resistors, connectors and semiconductors, coils, transformers, harnesses, and modems for computers and telephones.
5. Clock machinery, measuring, control, navigation instruments, and electronic medical equipment for medical use.
6. Batteries, accumulators, batteries, electrical conduction cables, plugs, contacts, fuses, and accessories for electrical installations.
7. Gasoline, hybrid, and alternative fuel engines for cars, vans, and trucks.
8. 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.
9. Internal combustion engines, turbines, and transmissions for aircraft.
10. Non-electronic equipment and devices for medical, dental, and laboratory use, disposable material for medical use, and optical articles for ophthalmic use.
Likewise, the tax stimulus applies to taxpayers dedicated to producing cinematographic or audiovisual works whose content is protected by copyright as long as the results are exported.
According to the Decree, taxpayers may apply the fiscal stimulus when they estimate that, during the fiscal years of 2023 and 2024, the income from the export of goods or works will represent at least 50% of its total turnover in each fiscal year, and consists of making the immediate deduction of the investment in new fixed assets, acquired from October 12, 2023 until December 31, 2024, through the application of the percentages that are established in the Second Article of the Decree, which may range from 56% to 89%, depending on the type of sound, equipment or machinery, instead of those indicated in articles 34, 35 and 209, sections B and C of the LISR.
If the estimate is not met, as well as any other requirement of the Decree, the tax, the update, and the corresponding surcharges must be covered.
It is essential to mention that this fiscal stimulus will only be applicable concerning those investments in new fixed assets2 that taxpayers keep in use for a minimum period of two years immediately following the year in which their immediate deduction is made and will not be applicable in the case of office furniture and equipment, automobiles powered by internal combustion engines, automobile armoring equipment, or any fixed asset that is not individually identifiable, nor in the case of airplanes other than those dedicated to agricultural aerial fumigation.
Additionally, taxpayers may apply in the fiscal years of 2023, 2024, and 2025, an additional deduction equivalent to 25% of the increase in the expense incurred for training received by each of their workers in the fiscal year in question, it being understood Therefore, that which provides technical or scientific knowledge linked to the taxpayer’s activity.
In this situation, taxpayers who apply the tax mentioned above incentives must be registered in the RFC, have the tax mailbox enabled, have a favorable opinion, and present the corresponding notice stating that they opt for the application of the tax incentives ( within the thirty calendar days immediately following the month in which the incentives above apply for the first time), among other requirements.
Taxpayers must keep a specific record of the investments for which they chose to apply the immediate deduction, which contains the supporting documentation; in the same way, they must make a specific record of the training given to workers and indicate the supporting documentation, as well as explicitly describing what said training consisted of—the relationship it has with any of the activities shown at the beginning of this note.
Finally, the Decree establishes that those taxpayers who, among other cases, fall into one of the cases referred to in article 69-B of the Federal Tax Code, or who have operations with listed taxpayers, have firm tax credits or that are not duly guaranteed, are in the liquidation process, have had their digital cellos temporarily restricted or canceled, or do not have investment or training records.
The lawyers of the Firm’s tax and foreign trade practices are at your service to answer any questions regarding the Decree mentioned above.
[1] Effective October 12, 2023.
[2]New fixed assets are those that are used for the first time in Mexico.
SINCERELY
Gerardo Nieto
nieto@basham.com.mx
Gil Zenteno
zenteno@basham.com.mx
Alejandro Barrera
barrera@basham.com.mx
Victor Barajas
mbarajas@basham.com.mx
Sergio Barajas
barajas@basham.com.mx
Francisco Matus
fmatus@basham.com.mx
Norberto Ruiz
nruiz@basham.com.mx
