To boost investment and strengthen production chains, the Mexican government announced fiscal support for new investments in 10 strategic sectors in products for export, including the automotive industry and auto parts, starting tomorrow. It is the first time that the current government grants a fiscal stimulus to exporting companies.
“The (fiscal) stimulus consists of choosing to make the immediate deduction of the investment in new fixed assets, acquired from the date of entry into force of this decree and until December 31, 2024,” published today the Secretariat of Finance (SHCP) in the official gazette of the Mexican government (DOF).
“By directing fiscal stimuli to exporting companies, competitiveness, innovation and investment in technology are promoted, which contributes to job creation and attracts foreign direct investment,” reported the SHCP.
The key sectors identified by the SHCP are food (human and animal), fertilizers and agrochemicals; inputs for the pharmaceutical industry; Electronic components; measuring instruments and electronic medical equipment; batteries and accessories for electrical installations; gasoline, hybrid and alternative fuel engines for cars, vans and trucks.
In addition, electrical and electronic equipment, steering systems, suspension, brakes, transmission systems, seats, interior accessories and die-cast metal parts, for automobiles, vans, trucks, trains, ships and aircraft. Internal combustion engines, turbines and transmissions, for aircraft, and non-electronic equipment and appliances for medical, dental and laboratory use, disposable material for medical use and optical articles for ophthalmic use.
The government specified that the tax incentives will only be for new goods, which are used for the first time in Mexico. In addition, taxpayers must keep it in use for a minimum period of two years immediately following the year in which their immediate deduction is made.
The deduction does not apply to office furniture and equipment, internal combustion automobiles, automobile armoring equipment, or any fixed asset that is not individually identifiable, nor to airplanes other than those dedicated to agricultural aerial fumigation.