Dear Clients and Friends:
On September 26, 2024, the Guidelines for the granting of tax benefits to taxpayers that carry out productive economic activities within the Progreso I and Merida I Industrial Welfare Poles of the State of Yucatan were published in the Official Gazette of the Federation, which became effective as of September 27, 2024 (the “Guidelines”).
The Guidelines regulate the Decree that grants tax benefits and administrative facilities in income tax and value added tax to promote investment in the Progreso I and Merida I Industrial Welfare Poles in the State of Yucatan, published in the Official Gazette of the Federation on June 28, 2024 (the “Decree”).
The Decree is aimed at taxpayers that carry out productive economic activities within the Industrial Welfare Poles Progreso I and Merida I (the “Poles”), understood as the areas indicated as such in the original declarations published in the Official Gazette of the Government of the State of Yucatan.
The following are understood as productive economic activities within the Poles: electrical and electronics; semiconductors; automotive (electromobility); auto parts and transportation equipment; medical devices; pharmaceuticals; agroindustry; electric power generation and distribution equipment (clean energies); machinery and equipment; information and communication technologies; metals; and petrochemicals.
For purposes of accessing the tax benefits and administrative facilities of the Decree, the Ministry of Finance must issue to the taxpayer the certificate evidencing compliance with the requirements established therein, in terms of the Guidelines, after requesting an opinion from the authority of the State of Yucatan.
A. With respect to income tax (IT), such tax benefits and administrative facilities consist of the following:
- Tax credit against income tax incurred.
This tax incentive is granted to the aforementioned taxpayers that obtain income from productive economic activities carried out within the Poles. This tax credit will be equivalent to 100% of the IT incurred and applicable during three fiscal years, counted as of the issuance of the respective certificate.
In the three subsequent years, the tax credit will be equivalent to 50% of the income tax incurred, or up to the equivalent of 90% if the minimum employment levels are exceeded, in terms of the Guidelines.
- Immediate deduction in investment of new fixed assets.
This tax incentive is applicable to the aforementioned taxpayers that use new fixed assets in the Poles to carry out productive economic activities.
The authorized percentage to carry out such immediate deduction is 100% of the original investment amount in the new fixed assets.
B. In the case of value added tax (VAT), the tax benefit is as follows:
A tax incentive is granted, until June 29, 2028, to taxpayers who carry out productive economic activities within the Poles, who sell of goods, provide independent services or grant the temporary use or enjoyment of goods to persons who carry out productive economic activities within the Poles.
The tax incentive consists of a tax credit equivalent to 100% of the VAT payable over the aforementioned activities.
Decree of the Government of the State of Yucatan.
In addition to the above, on June 27, 2024, Decree 778/2024 was published in the Official Gazette of the Government of the State of Yucatan, which grants tax incentives to taxpayers who carry out productive economic activities within the Poles.
These tax incentives consist of the reduction, until 2029, of the local payroll tax and the local tax over the obtention of income for business activities, both at 100% until 2027 and 50% during 2028 and 2029. In the case of the local additional tax for the execution of material works and social assistance, the stimulus will remain at 100% until 2029. The aforementioned percentages also apply to updating and accessories of these taxes.
In addition, the State Decree provides for a 100% reduction, until 2029, of the local duties for services rendered by the Public Registry of Property and Commerce, the Cadastral Direction, the Ministry of Sustainable Development, the Ministry of Health and the State Coordination of Civil Protection.
In EC Rubio we provide support to have knowledge of all the details and requirements necessary for the application of these tax benefits and administrative facilities. In case you have any questions regarding the above, please do not hesitate to reach out to your usual contact at the Firm.
Tax
Arturo J. Bañuelos / [email protected]
Edmundo Hernández / [email protected]
Fernando Holguín / [email protected]
Felipe Mendoza / [email protected]
Franco Herrera / [email protected]
Gloria Domínguez / [email protected]
Carlos Canseco / [email protected]
Jaime Ogushi / [email protected]
Luis Delgado / [email protected]
Natalia Aguilar / [email protected]
SUBSCRIBE TO OUR LEGAL ALERTS
Receive relevant news and information about our events.
