globaltaxnews.ey.comSign up for tax alert emailsPrintDownload

02 April 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

Endnote

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 | ana.mingramm@ey.com
  • Enrique Perez Grovas | enrique.perezgrovas@ey.com
  • Calafia Franco | calafia.francojaramillo@ey.com
  • Jose Manuel Ramirez | jose.manuel.ramirez@ey.com
  • Pablo Wejcman | pablo.wejcman@ey.com
Ernst & Young LLP (United States), Latin American Business Center, Chicago
  • Alejandra Sanchez | alejandra.sanchez@ey.com
Ernst & Young LLP (United States), Latin American Business Center, Miami
  • Terri Grosselin | terri.grosselin@ey.com
Ernst & Young, LLP (United States), Latin America Business Center, San Diego
  • Ernesto Ocampo | ernesto.ocampo@ey.com
  • Elias Adam | elias.adambitar@ey.com
Ernst & Young LLP (United States), Latin America Business Center, Houston
  • Francisco Noguez | javier.noguez@ey.com
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
  • Jose Padilla | jpadilla@uk.ey.com
Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific
  • Raul Moreno, Tokyo | raul.moreno@jp.ey.com
  • Luis Coronado, Singapore | luis.coronado@sg.ey.com

ATTACHMENT

Document ID: 2019-5460

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2025, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more