Decree granting tax incentives to key sectors of the export industry, consisting of accelerated depreciation of investment in new fixed assets and additional deduction of training expenses, DOF 11/10/2023.
Rafael Kichik
Partner, GKR I Kichik & Rosas
Luis Rosas
Partner, GKR I Kichik & Rosas
I. Introduction
On October 11th, the federal executive branch issued a decree granting corporate income tax incentives to taxpayers engaged in specific key sectors of the export industry ("Decree").
These benefits allow for an accelerated tax depreciation for capital expenditures in new fixed assets, along with a bonus tax deduction for workforce/personnel training expenses.
II. Beneficiaries
Taxpayers subject to corporate taxation in Mexico, and individuals performing entrepreneurial activities, provided that are engaged in the production, manufacturing, and export of goods in the following key sectors:
Food, agrochemicals, and fertilizers.
Pharmaceutical industry materials.
Electronic components.
Machinery for medical use.
Accessories for electrical installations.
Accessories and parts for automobiles.
Trains, ships, and airplanes.
Non-electric equipment for medical, dental, and laboratory use.
Cinematographic or audiovisual works, provided that these works are exported.
III. Accelerated Depreciation
The tax incentive grants an accelerated depreciation of capital investments in new fixed assets acquired between October 12, 2023, and December 31, 2024, by applying percentages ranging from 59% to 89% (i.e., percentages higher than those provided in the Income Tax Law).
Fixed assets must be kept in use for a minimum two-year period following the application of the accelerated depreciation.
The incentive will not apply to assets such as furniture and office equipment, internal combustion automobiles, armor for automobiles, planes other than those used for agricultural aerial spraying, as well as any other fixed asset not individually identified.
The Decree establishes a mechanism for recognizing the accelerated depreciation in the monthly advanced income tax payments of the year of the investment, which, in turn, enhances the available cash flow for companies that choose to apply it.
IV. Additional Deduction for Workforce/Personnel Training Expenses
An additional tax incentive involves a bonus deduction equivalent to 25% of the increase in technical or scientific training expenditures to actively employed individuals duly registered in the Mexican social security system.
This incentive should apply for the fiscal years 2023, 2024, and 2025, considering the increase in training expenses compared to the average expenditure incurred during the fiscal years of 2020, 2021, and 2022.
V. Value Added Tax
If all deductibility criteria specified in the Income Tax Law are met, then the value added tax correspondingo to the expense estipulated on the Decree is fully creditable.
VI. Additional eligibility criteria and Limitations
Taxpayers may only benefit of the incentives if they anticipate that, in the fiscal years 2023 and 2024, at least 50% of their total revenue will come from exports.
To be eligible, taxpayers must be registered in the Federal Taxpayers Registry (RFC, for its acronym in Spanish), have an active tax mailbox, keep a favorable compliance rating for tax obligations, and submit a notice indicating their choice to apply the incentives of the Decree.
The Decree is not available for:
Those listed under Articles 69, 69-B, and 69-B bis of the Federal Tax Code.
Those in the process of liquidation.
Those with confirmed or unsecured tax debts.
Those under a temporary restriction on digital stamps or whose stamps have been permanently canceled.
For further reference, you can access the official version of the Decree through the following link: