Doing Business

Doing Business in Mexico 2015

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24 Tax and Legal Services - PwC Mexico Regional incentives Regions affected Most regional incentives available have gradually been repealed. However state and local governments may be authorized to grant certain incentives or benefits within their jurisdiction. Tax incentives Regional tax incentives are very limited. A few States grant a reduction in real property or state payroll taxes to new industries established within the state. Non-tax incentives No regional non-tax incentives are granted at the federal level. Certain states donate land for plant sites or sell industrial sites at reduced prices, and guarantee the availability of public services, including electricity, water, transportation, etc. Earnings There are no state or local income taxes on corporate earnings. Industry incentives Industries affected and eligibility The industries discussed below enjoy special incentives, regardless of size and with no restrictions as to their location or the foreign ownership of their capital. Tax incentives Agriculture, livestock, fishing, and timber Taxpayers engaged exclusively in these industries are subject to a special tax regime that provides exemptions based on the number of shareholders. Non-tax incentives Tourism industry The government has undertaken to stimulate expansion in the tourism industry in Mexico. Foreigners purchasing residential real estate are now allowed to own all rights, except bare title to land in the coastal areas or along the country's borders. No restriction applies in the case of non-residential real estate in these areas, provided the real estate is acquired by a Mexican legal entity (regardless of the nationality of the shareholders/ partners), and provided notice is given to the Foreign Affairs Ministry within 60 (sixty) days after the acquisition takes place. A government trust, FONATUR, has made substantial investments in the infrastructure necessary for the development of a number of resorts. FONATUR sells beneficial rights to land in its resort areas for use for hotels, condominiums, shopping centers, etc., on relatively favorable terms and provides expert advice in planning such projects.

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