New incentives for companies in the Interoceanic Corridor of the Tehuantepec Isthmus

On 5 June 2023, the Government of Mexico issued new incentives aimed at promoting investment and encouraging the relocation of businesses to the Southeastern region of the country, specifically within the 10 Development Hubs along the Isthmus Corridor.

Companies engaging in productive economic activities within the Development Hubs will receive significant fiscal incentives, including a complete exemption from Income Tax (ISR) for the first three years of operation. In the subsequent three years (4th, 5th, and 6th), companies will only pay 50% of ISR, with the possibility of a 90% discount if employment goals outlined in the corresponding guidelines are achieved. The decree also allows for accelerated depreciation of investments during the initial six years of operation.

Operations within and between the Development Hubs will be exempt from Value Added Tax (IVA), and companies can recover the IVA paid on purchases made outside the Hubs for four years. Additional benefits in foreign trade, such as IVA exemption on temporary imports of inputs, a 0% export tax on goods or services, and administrative facilities reducing costs, are accessible to participating companies.

• Type:

  • Promotion and facilitation (Investment incentives, Special economic zones)

• Industry:

  • Not industry specific

• Sources:

  • Gobierno de Mexico, Comunicado No. 40 Gobierno de México lanza nuevos estímulos fiscales para empresas que invierten en Polos de Desarrollo del Istmo, https://www.gob.mx/shcp/prensa/comunicado-no-40-gobierno-de-mexico-lanza-nuevos-estimulos-fiscales-para-empresas-que-invierten-en-polos-de-desarrollo-del-istmo?idiom=es, 05 Jun 2023
  • Lexology, The Mexican Government will grant tax incentives for companies that decide to establish or relocate their facilities in the Interoceanic Corridor of the Tehuantepec Isthmus, https://www.lexology.com/library/detail.aspx?g=05d99517-8958-4931-931c-e6203777b79b, 05 Jun 2023