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Mexico Grants Tax Benefits To Farmers In Southern States

by Mike Godfrey, Tax-News.com, Washington

07 January 2015


The Mexican Government enacted a decree on January 1, 2015, granting preferential tax treatment to farming activities in the southern states of Chiapas, Guerrero and Oaxaca, according to an announcement from the Secretariat of Finance and Public Credit (SHCP).

Under the decree, taxpayers based in the above three states who are engaged exclusively in agribusiness or the primary sector are entitled to offset 25 percent of the cost of new fixed assets against income tax.

The benefit does not apply to furniture and office equipment, automotive equipment, or aircraft (other than those used for agricultural spraying).

The preferential tax treatment is intended to boost the development of the agriculture and forestry sectors in Chiapas, Guerrero, and Oaxaca. According to the SHCP, these sectors are the main source of income for those living in the three states. Due to a lack of investment, the agriculture and forestry sectors in those states are under-developed in comparison with the rest of the country.

The tax relief is due to expire on December 31, 2018.

TAGS: Finance | tax | investment | business | tax incentives | Mexico | food | tax breaks

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