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April 2, 2019

Mexican Tax Administration issues amendments to Miscellaneous Tax Regulations on tax incentives for the northern border region

On 28 March 2019, the Mexican Tax Administration (SAT for its Spanish acronym) released, on its website, the draft of the Ninth Resolution of Amendments to the 2018 Miscellaneous Tax Regulations (MTRs). The proposed amendments provide additional rules for the application of the northern border region tax incentives.1 The amendments are not effective until they are published in the Official Gazette.

The amendments extend the deadline for filing the notice to enroll in the value added tax (VAT) registry from 7 February 2019 to 30 June 2019. Taxpayers may claim the VAT benefits once they receive an acknowledgment from the SAT that it has received the notice.

The amendments to the MTRs also clarify that: (1) taxpayers included on the list of non-compliant taxpayers as a result of fines being canceled may apply for the VAT tax incentive; (2) taxpayers that have performed any business with non-compliant taxpayers may apply the income tax and VAT incentives, provided that their tax situation is amended (i.e., they no longer do business with the non-compliant taxpayers) before the tax incentive request including the supporting documentation; and (3) certain tax incentives may be combined with the tax incentives for the northern border region, such as:

  • The profit-sharing reduction, which allows profit sharing to be divided into nine monthly payments
  • 5% additional deduction for donations of food or health items
  • 25% additional salary deduction for hiring disabled people, as well as older adults (more than 65 years)
  • A 16% VAT credit that may be claimed in the same month the credit is generated for the taxpayers with Maquila Authorization (IMMEX)
  • Tax incentive on production and services related to the import and disposal of fuel, diesel and non-fossil fuels


1. For additional information on the MTRs related to the northern border region tax incentives, see EY Global Tax Alerts, Mexico issues special tax incentives for businesses in border zone, dated 9 January 2019, Mexico releases draft Miscellaneous Tax Regulations on tax incentives for northern border zone, dated 22 January 2019, and Mexico: Amendments to Miscellaneous Tax Regulations for overpayments and tax incentives for the northern border region are effective, dated 4 February 2019.

For additional information with respect to this Alert, please contact the following:

Ernst & Young LLP (United States), Latin American Business Center, New York
  • Ana Mingramm |
  • Enrique Perez Grovas |
  • Calafia Franco |
  • Jose Manuel Ramirez |
  • Pablo Wejcman |
Ernst & Young LLP (United States), Latin American Business Center, Chicago
  • Alejandra Sanchez |
Ernst & Young LLP (United States), Latin American Business Center, Miami
  • Terri Grosselin |
Ernst & Young, LLP (United States), Latin America Business Center, San Diego
  • Ernesto Ocampo |
  • Elias Adam |
Ernst & Young LLP (United States), Latin America Business Center, Houston
  • Francisco Noguez |
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
  • Jose Padilla |
Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific
  • Raul Moreno, Tokyo |
  • Luis Coronado, Singapore |



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