Extension of IETU Benefits for IMMEX (Maquiladora) Companies Should Continue to Attract Investment in Mexico
October 18, 2011
The Mexican government has extended the Flat Tax incentive for Maquila operation. In an effort to mitigate the adverse impact caused by the introduction of the Flat Tax (IETU) on the Maquiladora Industry, a presidential decree, issued November 5, 2007, granted various tax benefits to Maquiladoras in Mexico. The incentive was previously available through December 31, 2011. However the incentive will now be available until December 31, 2013.
The announcement came after extensive testimony from the National Council of the Maquiladora and Export Manufacturing (CNIMME), which monitors employment in the sector. Many states in Mexico rely heavily on the IMMEX industry for jobs. Statistics for July 2011 show that 20.64% of the population was employed by IMMEX companies in Chihuahua; 14.6% in Baja California and 16.76% in Coahuila, to mention a few. This informational press release also explains how to apply for this tax benefit:
Full Press Release