Significant tax incentives in Yucatán
On June 28, 2024, the Decree fostering investment in the Progreso I and Mérida I Wellbeing Industrial Hubs of the state of Yucatán (the “Decree”) was published in the Official Gazette of the Federation, granting various tax incentives for purposes of the Income Tax and the Value Added Tax for the performance of economic activities within the aforementioned hubs, as follows:
It is important to consider that, as economic activities, the Decree comprises the following activities carried out within the Wellbeing Industrial Hubs: I. Electrical and electronic, II. Semiconductors, III. Automotive (electromobility), IV. Auto parts and transportation equipment, V. Medical devices, VI. Pharmaceutical, VII. Agroindustry, VIII. Electric power generation and distribution equipment (clean energy), IX. Machinery and equipment, X. Information and communication technologies, and XI. Metals and petrochemicals. A. Income Tax (“ISR”). For ISR purposes, the Decree grants a tax incentive consisting of a creditable tax credit against the amount of the tax incurred, determined in the relevant fiscal year for the applicable economic activities, which shall be equivalent to 100% of the ISR incurred in the first three fiscal years, and 50% in the three subsequent fiscal years (this percentage being able to rise up to 90% in the event they exceed the minimum employment levels established). In addition to the foregoing, authorized taxpayers may take the immediate deduction of 100% of the original amount of the investment in new fixed-asset goods that they use in the hubs to carry out their productive economic activities during the six fiscal years following receipt of the authorization certificate from the Ministry of Finance and Public Credit (“SHCP”), instead of applying the percentages authorized by the ISR Law. It is important to point out that when taxpayers obtain income other than that derived from the economic activities provided for, they must separately determine the ISR on such income without applying the tax credit provided for in the Decree. B. Value Added Tax (“IVA”). For IVA purposes, the Decree grants a tax incentive to taxpayers that carry out productive economic activities within the hubs and that transfer goods, render independent services, or grant the temporary use or enjoyment of goods to persons that carry out economic activities within the hubs, for four years counted from its entry into force, consisting of a tax credit equivalent to 100% of the IVA payable for such activities. For this tax incentive to be applicable, it is necessary that no amount be passed on to the acquirer of the goods or services as IVA and that the goods, services, or temporary use or enjoyment be used and made use of by the acquirers in the performance of their productive economic activities within the hubs. Taxpayers that do not apply this tax credit in the payment return corresponding to the month in which they carry out the corresponding activities shall forfeit the right to apply it thereafter. Now then, in order to apply the tax incentives described above, it will be necessary to comply with the following requirements: I. Being current in the fulfillment of their tax obligations. II. Holding a document granting them the use, exploitation, and, where applicable, possession of all or part of the surface area of the hubs, verified by the competent authority of the state of Yucatán. III. Submitting the investment project for which the use, exploitation, and, where applicable, possession referred to in the preceding section was granted, verified by the competent authority of the state of Yucatán. IV. Having their tax domicile in the hub where they develop their productive economic activities. In order to maintain and apply the tax benefits provided for in the Decree, taxpayers must submit to the SHCP progress on the aforementioned investment project and comply with the minimum employment levels determined by the SHCP in accordance with what is provided for in such project. The SHCP must issue the certificate evidencing compliance with the established requirements, or, as the case may be, the resolution of noncompliance therewith. This document is valid as of the date of its issuance and its purpose is merely informative and not interpretative with respect to the information it contains. It is not an opinion and therefore should not be considered as advice applicable to particular cases under any circumstances. Should you require professional advice regarding the matters included in the document, we would appreciate your contacting us directly. For additional information, contact our experts: Alejandro Torres, Partner: +52 (55) 5258-1072 | ajtorres@vwys.com.mx Luis Torres, Counsel: +52 (55) 5258-1023 | ltorres@vwys.com.mx Alfonso Leñero, Associate: +52 (55) 5258-1008 | alenero@vwys.com.mx
