Decree granting fiscal incentives to support the national strategy “Plan Mexico”, to promote new investments that encourage dual training programs and promote innovation (hereinafter, “The Decree”), which entered into force on January 22, 2025.
The Decree seeks to maximize the country’s competitive advantages, strengthen local supply and promote technological innovation, expand import substitution with value chains and place Mexico among the ten largest economies in the world.
Through the Decree, the Federal Government seeks to optimize incentives for foreign companies that relocate to Mexico and supports domestic companies with the capacity to integrate into value chains. This scheme applies to all industries and includes MSMEs, promoting their participation in economic development.
A) Tax incentives.
The Decree grants a tax incentive to taxpayers that are in the general regime of corporations, individuals with business activities and simplified trust, allowing them the immediate deduction of investments in new fixed assets acquired between its entry into force and September 30, 2030. These deductions apply only if the assets remain in use for at least two years and are used for the first time in Mexico (i.e., considered new assets). Goods such as office furniture and equipment, internal combustion automobiles, armored equipment, non-individually identifiable goods and airplanes other than agricultural aerial fumigation airplanes are not eligible for these deductions.
The deduction scheme is divided into two stages: the first in 2025 and 2026 (with a higher deduction percentage) and the second from 2027 to 2030. The total amount of incentives will not exceed 30 billion pesos, of which 28.5 billion pesos will be allocated to investments in fixed assets and 1.5 billion pesos to additional deductions for training and innovation.
As a control measure, an Evaluation Committee will be created, which will annually set the maximum amount of applicable incentives.
B) Requirements.
In order to access and apply the deductions set forth in the Decree, there are the following requirements:
Be registered in the Federal Taxpayers Registry and have enabled the tax mailbox in terms of article 17-K of the Federal Fiscal Code (“CFF”).
To have a positive opinion of compliance with the tax obligations referred to in Article 32-D of the CFF.
Submit the investment project; the collaboration agreement entered into with the Ministry of Public Education regarding dual education; the investment project for the development of the invention or for the initial certification, as the case may be.
To have the certificate of compliance issued by the evaluation committee that will be integrated by representatives of the Ministry of Finance and Public Credit, the Ministry of Economy (the “Evaluation Committee”), in order to apply the tax incentives set forth in the Decree.
Comply with the guidelines issued by the Evaluation Committee.
Also, taxpayers must keep a specific record of the investments for which they have opted to apply the immediate deduction.
C) Incentives for recruitment and innovation
The Decree allows taxpayers to apply an additional deduction of 25% on the increase in training expenses of their workers or in innovation, applicable in the annual tax returns for fiscal years 2025 to 2030.
-Training. It shall be understood as that which provides technical or scientific knowledge related to the taxpayer’s activity.
-Innovation. Refers to expenditures on investment projects for the development of inventions, obtaining patents or initial certifications required for integration into local or regional supply chains.
In order to apply the deduction for training, it must be provided only to active workers registered with the Mexican Social Security Institute (IMSS).
D) Restrictions
Taxpayers will not be able to apply the incentives of the Decree if they incur in any of the following situations:
→Figure on SAT blacklists: being indicated in Article 69 of the Federal Fiscal Code (CFF) and appearing on the list published by the SAT.
→Not to distort presumptions of article 69-B of the CFF; this includes those who have partners or shareholders in this situation.
→Presumptionof Article 69-B Bis of the CFF: the presumption referred to in this article has been applied once published in the Official Gazette of the Federation and the SAT website to the taxpayer.
→Having firm tax credits without sufficient collateral.
→Failure to comply with the requirements of the Decree, including investment and training records.
→Be in the process of liquidation.
→Have temporary restriction on the use of digital seals.
→Having cancelled digital seal certificates by the SAT.
E) Final provisions
In addition, the Decree repeals the previous decree of October 11, 2023, which granted tax incentives to key sectors of the export industry, such as the immediate deduction of investments in new fixed assets and the additional deduction of training expenses.
At Ontier Legal, we are at your disposal to support you in the best way to make investments related to the present matter and to advise you with the legal and juridical aspects related to the Decree.
For any question related to this topic, you may contact Héctor G. González
Ontier LLP is authorised and regulated by the Solicitors Regulation Authority, registration number OC327289.
