CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Mexico Enacts Decree For Tax Cuts In Border States

Mexico Enacts Decree For Tax Cuts In Border States

by Mike Godfrey, Tax-News.com, Washington

14 January 2019


Mexican President Andres Manuel Lopez Obrador has signed a decree providing for tax cuts in the Mexican states bordering the United States.

Under the decree, signed on December 29, 2018, and published on December 31, qualifying companies will be able to reduce their effective corporate tax rate from 30 to 20 percent in 43 border municipalities by claiming a tax credit equal to one-third of the corporate tax due.

In order to claim the corporate tax credit, companies must meet certain residency requirements and receive 90 percent of their income from sources within the region. Certain taxpayers are excluded from the incentive, including those deriving income from intangible assets.

In addition, the decree provides for a 50 percent reduction in value-added tax for taxpayers rendering services, selling certain goods and leasing property in the region, effectively reducing the rate of VAT to eight percent, down from 16 percent.

The changes are effective from January 1, 2019.

TAGS: tax | value added tax (VAT) | tax incentives | Mexico | tax credits | United States | services

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »