On January 21, 2025, the Mexican government enacted a new Decree published in the Federal Register granting specific tax incentives as part of the “Plan Mexico” launched this month by the president of Mexico to attract investment, promote technical and scientifical training and strengthen local supply chains.
Therefore, As of January 21st, 2025 and up to 2030, taxpayers will be able to accelerate all investments in new fixed assets. In 2025 and 2026, the accelerated rates go from 41% to 91%, depending on the kind of assets acquired and the type of economic activity undertaken by the taxpayers. The general rate for non-specified assets or economic activities is of 72%.
For 2027 and up to 2030, the accelerated rates diminish and go from 35% to 89%, depending as well on the of assets acquired and the type of economic activity undertaken by the taxpayers. The general rate for non-specified assets or economic activities is of 67%.
It is important to take into consideration that even when the applicable rules establish that this benefit applies for new fixed assets, the same rules clarify that assets will be deemed as new, when they are used for the first time in Mexico. Consequently, the acquisition of used assets will fall under the scope of this tax benefit, as long as they have not been used previously in Mexico.
In addition to the accelerated deduction, taxpayers that spend on the training of their employees and/or make innovation expenses, will be subject to an additional deduction of 25% on the correspondent payments.
For purposes of this benefit, only training that provides technical or scientific knowledge to employees will be deemed as training subject to the additional deduction; while only innovation expenses aimed to obtain patents or to obtain initial certifications to improve supply chains will be subject to the additional deduction.
New guidelines will be issued to establish additional rules to apply these benefits, but as of now the following are some of the requirements that must be met to apply for these benefits:
- Obtain a certification issued by the tax authorities of good standing as a taxpayer.
- File either: i) an investment project, ii) a collaboration agreement with the Ministry of Education to train employees or iii) an investment project for the development of innovations.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
