EXECUTIVE SUMMARY:
- As of June 6, 2023, various tax incentives came into effect for individuals and legal entities, as well as for residents abroad with a permanent establishment in the country, who invest in the Development Poles located in the States of Oaxaca and Veracruz.
- The purpose of these tax incentives is to encourage productive investments, job creation and economic growth in the Development Poles for Well-being
- At Santamarina + Steta we can advise you on the application of these tax incentives in case you are a taxpayer who wishes to invest in any of the areas considered within the Development Poles of the Isthmus of Tehuantepec.
On June 5, 2023, the Official Gazette of the Federation published the Decree promoting investment by taxpayers who carry out productive economic activities within the Development Poles for the Well-being of the Isthmus of Tehuantepec, through which various tax incentives are established with the aim of encouraging productive investments, job creation and economic growth in the Development Poles for Well-being, which to date are Coatzacoalcos I, Coatzacoalcos II, Salina Cruz, San Blas Atempa, San Juan Evangelista and Texistepec.
The productive economic activities subject to the incentives are the following:
- Electrical and electronics
- Semiconductors
- Automotive (electromobility)
- Auto parts and transportation equipment
- Dispositivos medicos
- Pharmaceutical
- Agribusiness and Food
- Electric power generation and distribution equipment (clean energy)
- Machinery and equipment
- Technology of the information and communication
- Metals and petrochemicals
- Any other determined by the Governing Board of the Interoceanic Corridor of the Isthmus of Tehuantepec for the Development Poles for Well-being
The incentives granted to taxpayers who carry out these activities consist of:
- 100% tax credit creditable against income tax caused by income from productive economic activities carried out within the Poles, during the first three fiscal years after obtaining proof of the completion of productive economic activities, and 50% during the three subsequent fiscal years, which may be up to 90% provided that the minimum employment levels are met, in accordance with the guidelines announced by the Ministry of Finance and Public Credit.
- Immediate deduction of 100% of investments in new fixed assets used within the Pole, in the first six fiscal years in which productive economic activities are carried out. Except for automobiles, office furniture and equipment, armor-plating equipment and assets that are not individually identifiable.
- Tax credit equivalent to 100% of the value added tax that must be paid for the sale of goods, the provision of independent services or the granting of temporary use or enjoyment of goods within the Pole where they are located, or in a different one to the one where they are located, which will be creditable against the tax that must be paid for the aforementioned activities. This incentive may be applied during the four years following the entry into force of the Decree or from the publication of the declaration of a Pole in the Official Gazette of the Federation.
In order to apply the referred incentives, taxpayers must meet the following requirements:
- To be up to date in the compliance of their tax obligations.
- Have a valid concession title or be the owner of some surface within a Development Pole for Well-being.
- Submit, where applicable, the investment project for which the concession title referred to in the previous section was granted.
- Have their tax domicile in the Development Pole for Welfare where they carry out their productive economic activities.
Additionally, there are particular conditions and requirements that must be observed in the application of each of the stimuli as appropriate.
At Santamarina + Steta we can advise you on the application of these tax incentives in case you are a taxpayer who wishes to invest in any of the areas considered within the Development Poles of the Isthmus of Tehuantepec.
