Maquiladora Regime – Presidential Decree
Tax Alert 01/2014
The Mexican president issued a decree on 26 December 2013 (Presidential Decree) that grants maquiladoras several tax benefits relating to income tax, VAT and the use in Mexico of machinery and equipment (M&E) owned by nonresidents to mitigate some of the effects of the 2013 tax reform. Subsequently, on 30 December and 1 January, the tax authorities issued miscellaneous tax provisions that clarify some of the tax reform measures affecting maquiladoras.
The decree, which applies as from 1 January 2014 (unless otherwise noted), includes the following measures:
- Neutralization of the negative impact of nondeductible payroll expenses
- Grandfather clause for maquiladoras operating on 31 December 2009
- Elimination of partial income tax exemption
- Immediate VAT credit on acquisition of goods from a nonresident
- and others
We hope you find this information relevant for your company activities.