Important – Mexican Ministry of Finance and Public Credit/Tax Incentives Decree

Please be advised that on September 10, 2014, the Mexican Federal Government published in the Official Gazette of the Federation the Decree that grants tax incentives to those that register within the Fiscal Incorporation Regime. The incentives includediscounts onthe payment ofValue Added Tax(VAT) and Special Tax on Productionand Services(IEPS), with percentages that varyaccording to the economicsector.

With respect to VAT, 8% will be paid in the event of mining and the rendering of services, where restaurants, taverns, bars and other similar businesses where food and beverage services are provided are contemplated; 6% for manufacturing and construction; and 2% for trade, including real property lease.

In the case of IEPS, 23% in planed for manufacturers of cigars and handmade cigars; 21% for manufacturers of alcoholic beverages and 10% for marketers, with the exception of beer in both cases; and 10% for brewers, among other areas that receive incentives. The reduction in both taxes apply to 100% of the first year of the taxpayer and decrease by 10% per year for those with two years on beyond. For taxpayers whose income does not exceed 100 pesos, they were reduced to 100 percent.

The provisions of the abovementioned resolution will be effective as of January 1, 2015.

For further reference please go to to view the Spanish version of the provisions of the corresponding decree.


Ernesto Velarde