Mexican President Claudia Sheinbaum has given the go-ahead for her six-year investment attraction strategy, called Plan Mexico. Her government is preparing a large bag of fiscal incentives that companies that invest in high value-added sectors in the country can take advantage of. Sheinbaum’s administration will grant up to 30 billion pesos in fiscal incentives to companies that make new investments and disbursements in innovation and training in the next six years. The launch of the ambitious initiative, which aims to attract up to 277 billion dollars in new capital, occurs one day after the inauguration of Donald Trump as president of the United States and with volatility in the financial markets due to the measures that the Republican may take to make a sharp turn in the international trade board with a barrage of tariffs.
Despite this climate of uncertainty, the Mexican government has taken a step forward to start the so-called Plan Mexico. The decree known as nearshoring will grant greater tax incentives for those companies that invest in the country. The document states that, hand in hand with the Mexico Plan, regional supply will be developed, technological innovation, training and direct marketing will be strengthened. According to the Executive, it is necessary to improve the incentives granted to foreign companies that relocate to Mexico and promote national companies integrated into these value chains. “It is important to provide security to investors, promote liquidity, generate greater economic development, which is why this Government considers it appropriate that the tax incentives be applicable until September 30, 2030,” says the document.
In this bag of tax support, the Mexican Government gives one more prerogative to small and medium-sized companies. The decree establishes that, of the total amount of the incentives, at least 1,000 million pesos will be allocated to taxpayers with total income of 100,000 million pesos. The deduction percentages on investments in machinery, equipment and fixed assets range from 35% to 90%, however, the largest incentives are directed to technology companies. Companies interested in obtaining this incentive package must submit their application to an Evaluation Committee made up of the Treasury, Economy and the Advisory Council for Regional Economic Development and Relocation. This group will evaluate investment projects in machinery, equipment, land, buildings, among others, as well as collaboration agreements in education and plans to develop innovation or obtain patents.
The decree represents progress in the implementation of the Mexico Plan, one of the defense trenches that the Mexican Government has put in place to encourage the attraction of investments and to ward off threats from the United States regarding Mexican imports and investments. This plan seeks to ensure that 50% of the national supply and consumption of textiles, footwear, furniture and toys is local by 2030. In addition, the strategy has ensured that, if investments are made, 1.5 million additional jobs will be generated in specialized manufacturing and in priority sectors alone.
Source: elpais
