Chihuahua, Chih., October 2nd, 2023.
Dear Clients and Friends,
In response to the needs of the maquiladora industry in Mexico, there has been a quest for ways to boost said industry by means of concepts such as nearshoring, which has led to a monthly growth of 0.9% in the number of people employed in facilities that provide maquiladora and export services, the highest figure since the beginning of 2022, according to INEGI. (National Institute of Statistics and Geography).
Nearshoring consists in an outsourcing strategy whereby multinational companies transfer part of their manufacturing and production to third parties located in other nearby countries with a similar time zone, such as US companies in Mexico. Furthermore, this concept includes certain tax incentives, both municipal and state, which are granted to these companies in order for them to relocate their businesses and maquiladoras to Mexico in a beneficial manner.
This has been the case in the automotive industry in the state of Nuevo León, where incentives such as exemption from Income Tax (ISR), Value Added Tax (IVA), Payroll Tax (ISN), as well as municipal incentives like a 50% reduction in property tax for several years have been granted.
The aforementioned incentives are not the only ones that could be provided to multinational companies looking to establish their maquiladoras in Mexican territory. Since subsidies could also be granted on the payment of Payroll Tax, on the payment of registration fees at the Registry and Cadastral Institute of the State in question, as well as on any other state fee related to the investor’s activities.
In the state of Chihuahua, nearshoring can result in an extremely important economic growth, due to its proximity to the United States of America, which is a significant advantage.
For further information regarding this matter, please contact Mr. Sergio Humberto Salas Medrano, Partner of the Tax and Administrative Area, at ssalas@iclmx.com.
MR. SERGIO H. SALAS MEDRANO.
ININTEGRUM CORPORACIÓN LEGAL, S.C.