The government of Mexico‘s President Claudia Sheinbaum announced on Tuesday new fiscal incentives for nearshoring (relocation).
The government will also grant incentives to companies that make training and innovation expenses.
This stimulus package will be given up to 30,000 million pesos and will be effective until September 30, 2030.
New fiscal incentives for nearshoring
The new incentives related to nearshoring were published one day after Donald Trump began his second term as President of the United States.
On that first day in office, Trump announced that he plans to impose 25% tariffs on Mexico and Canada, “because they are allowing a lot of people and fentanyl” into the United States.
The total amount earmarked for the incentives will not exceed 30 billion pesos during the term of the decree, which will end on September 30, 2030. Of this amount, Ps. 28.5 billion will be allocated for the fiscal stimulus for investment in new fixed assets. The remaining 1.5 billion pesos will be allocated to the tax incentive of the additional deduction for training and innovation expenses.
To carry out this process, the government will establish an Evaluation Committee. This committee will be composed of representatives from the Ministries of Finance and Public Credit, as well as the Economy. In addition, the Regional Economic Development and Relocation Advisory Council will participate.
Small and medium-sized companies
In order to promote tax incentives among Micro, small and medium-sized companies (Mipymes), this administration has decided that, as a minimum, 1,000 million pesos of the total amount of the incentives will be allocated to taxpayers who have had total income in the immediately preceding fiscal year of up to 100 million pesos.
The decree will become effective on January 22, 2025. As of that date, the “Decree by which tax incentives are granted to key sectors of the export industry, consisting of the immediate deduction of the investment in new fixed assets and the additional deduction of training expenses”, published in the Official Gazette of the Federation on October 11, 2023, will cease to be in effect. Its subsequent amendment, published on December 24, 2024, as well as any administrative provision that contravenes or opposes the provisions of this new decree, will also cease to be in effect.