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News & Knowledge

Tax incentives granted for tax payers in Mexico’s North Border Region

5th February 2019
Perez Gongora & Asociados, S.C.

Taxpayers that carry out or wish to begin carrying out business activities in the northern border are able to enjoy said tax benefits, as long they duly submit a notice before the tax authority. The deadline for income tax is 31 March; the deadline for Value Added Tax is 31 January. MSI's Mexican accounting member Perez Gongora & Asociados, S.C. provides further details.

On December 31, 2018, a Presidential decree was published in the Official Gazette of the Federation, setting forth preferential tax rates regarding income tax and value added tax. Said Decree will be effective during 2019 and 2020. Furthermore, on January 7, 2019, an anticipated version of the Tax Rules regarding such Decree was issued by the Mexican tax authority.

Pursuant to its Explanatory Statement, the Decree is meant to strengthen the economy of taxpayers living in the northern border, by stimulating and increasing the level of investment, enhancing productivity and creating sources of employment. Additionally, said Statement determined that given its closeness to the United States of America, the northern border has got a different economic dynamism to the rest of the country.

Article First of the Decree, sets forth a list of 43 municipalities that make up the northern border, as follows:

  • Baja California: Ensenada, Playas de Rosarito, Tijuana, Tecate and Mexicali.
  • Sonora: San Luis Río Colorado, Puerto Peñasco, General Plutarco Elías Calles and Caborca, Altar, Sáric, Nogales, Santa Cruz, Cananea, Naco and Agua Prieta.
  • Chihuahua: Janos, Ascensión, Juárez, Praxedis G. Guerrero, Guadalupe, Coyame del Sotol, Ojinaga and Manuel Benavides.
  • Coahuila: Ocampo, Acuña, Zaragoza, Jiménez, Piedras Negras, Nava, Guerrero and Hidalgo.
  • Nuevo León: Anáhuac.
  • Tamaulipas: Nuevo Laredo, Guerrero, Mier, Miguel Alemán, Camargo, Gustavo Díaz Ordaz, Reynosa, Río Bravo, Valle Hermoso and Matamoros.

Hence, there are some important considerations to be made, regarding the particular nature of each tax incentive.

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