Foreign companies that operate in our Manufacturing Communities in Mexico benefit from a legal framework that provides a permanent establishment protection for four years which in turn acts as an income tax shelter for four years.
In addition to an extended income tax benefit, our legal framework provides the means for value added tax reimbursement on all client expenditures that are incurred in Mexico where a 16% value added tax is assessed and collected. Moreover, our Mexican legal entities are certified to the requirements of Mexico’s treasury enforcement agency known as SAT. Companies with a VAT Tax Certification by SAT enjoy an instant credit on VAT tax assessed on all imported goods as well as a shortened reimbursement period for VAT paid on Mexico purchases of goods and services.
In order for our client companies to enjoy the fiscal benefits of operating under our legal framework, strict accounting practices and controls are carried out by our experienced accounting department which is supported by customized software and ISO9001:2008 certified processes.
A Roadmap for Manufacturing in Mexico