Will Mexico issue new tax incentives to attract more companies for Nearshoring?

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The tax incentives, which provide for tax deductions from 56% to 89% on investments made in 2023 and 2024, are intended for companies that are dedicated to both the production and export of 10 items. 

Mexico Offers Tax Incentives to Entice Nearshoring Investors

  • The government decree applies to 10 sectors, including batteries
  • Tax relief on fixed investments lasts until end of 2024

Mexico is offering large tax breaks to a swath of industries in a government decree published Wednesday, aiming to capitalize on a nearshoring trend that has seen companies pile into the country.

The incentives cover 10 sectors, including semiconductors, electronic components, batteries, motors, fertilizers, and pharmaceuticals, Deputy Finance Minister Gabriel Yorio.

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Source: Bloomberg

Monterrey Daily Post