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Mexico Introduces Tax Incentives for Northern Border Region

|Approved Changes|Mexico
Mexico

On 31 December 2018, Mexico published in the official gazette a decree on tax incentives for northern border regions. The incentives include:

  • An income tax credit equal to 1/3 of the tax due for a period, which effectively reduces the corporate income tax rate from 30% to 20%; and
  • A 50% VAT credit that can be applied directly at the time of a transaction and effectively reduces the VAT rate f…

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