On June 28, 2024, the Official Gazette of the Federation, [in Spanish: el Diario Oficial de la Federación], (DOF), published a decree whose aim is to attract new investments in productive economic activities within the Industrial Park Development Centers for Wellbeing. They will create jobs and improve salary levels for workers, including those investments within the Industrial Park Development Centers for Wellbeing Progreso I and Mérida I, announced by the State of Yucatán. 

Among others, the aforementioned decree grants first and foremost the following fiscal benefits and administrative incentives: 

• Income Tax [in Spanish: Impuesto Sobre la Renta] (ISR)

A fiscal tax credit is offered against Income Tax that is incurred as follows:

• • Equivalent up to 100% during the first 3 years.
  • Equivalent up to 50% in the three subsequent tax years if it exceeds the minimum levels of employment, which are established in the guidelines. This final percentage could increase up to 90%.

• Immediate deduction of investments in new fixed assets

Over a 6-year period of  immediate deduction of 100% of the original amount of the investment can be performed for new fixed assets, provided that they be used in the Industrial Park Development Centers for Wellbeing, for the purpose of engaging in productive economic activities as previously indicated.

• Value-Added Tax (VAT) [in Spanish: Impuesto al Valor Agregado (IVA)

A tax credit is offered for 4 years to contributors who engage in productive economic activities within the Industrial Park Development Centers for Wellbeing, equivalent to 100% of the VAT, which must be paid for disposal of assets, provision of independent services, or the granting of the temporary use or enjoyment of property. For those individuals who carry out the previously indicated productive activities, it will be creditable against the tax that must be paid for the previously mentioned activities.

The productive economic activities to which the previously mentioned benefits will be applied as follows: 

1) Electrical and electronics.

2) Semiconductors.

3) Automotive (electromobility).

4) Autoparts and transport equipment.

5) Medical devices.

6) Pharmaceuticals.

7) Agro-industry.

8) Generating equipment and electric power distribution (clean energy).

9) Machinery and equipment.

10) Information technology and communication.

11) Metals and petrochemicals.

It is worth noting that these financial incentives are not considered taxable income for Income Tax purposes, and those who use it have administrative incentives. However, those who are interested in obtaining the previously indicated benefits must comply with, and among others, the following requirements: 

I. Be up-to-date with  tax compliance;

II. Have a document, (concession, lease, loan for use, or any other provision which will permit it), that proves fully  or partially possession of the surface area of the Industrial Park Development Centers for Wellbeing, announced in the State of Yucatán (Progreso I and Mérida I);

III. Submit, when appropriate, the investment project with respect to the use, exploitation, and development, and, where applicable, the possession, referred to in the previous section, and;

IV. Have a tax address in the Industrial Park Development Center for Wellbeing where productive economic activities are carried out.

JA DEL RÍO offer a wide array of specialized consulting services to assist you with these and other matters, in order to ensure that your new project complies with the applicable characteristics  contained in this decree.

If you have any questions, J.A. DEL RÍO can provide you with our experts to advise you in matters concerning compliance with your legal and tax obligations. Once again, please let us know if we may be of any further assistance to you at: contacto@jadelrio.com.