On Friday, June 28, the DECREE to promote investment in the Industrial Welfare Zones Progreso I and Mérida I in the state of Yucatán was published in the Federal Official Gazette, granting fiscal incentives to taxpayers engaged in productive economic activities within these two newly declared Industrial Welfare Zones in Yucatán (the "Decree").
The two new Industrial Welfare Zones identified as Progreso I and Mérida I are located in the state of Yucatán as follows:
The fiscal benefits provided by this incentive will include productive economic activities within the zones in the following sectors:
Regarding income tax ("ISR"), the Decree grants a tax credit applicable against the ISR incurred, determined in the relevant fiscal year, equivalent to 100% of such tax credit, for three fiscal years from the time the taxpayer obtains the certificate mentioned in the following section.
This credit will be up to 90% for the next three years if the minimum employment levels are exceeded, according to the guidelines issued by the corresponding authorities; if these levels are not exceeded, the tax credit will be reduced from 90% to 50%. This tax credit is also applicable to advance income tax payments.
Additionally, during the same 6-year period following the obtainment of the certificate, taxpayers can claim an immediate deduction of 100% of the fixed asset in the fiscal year when its use starts within national territory or in the next fiscal year.
Regarding value added tax ("IVA"), a tax credit of 100% of the tax payable for activities carried out within and between the zones is granted during the first four years from the Decree's effective date.
To qualify for the benefits granted by this incentive, taxpayers must have the certificate issued by the Ministry of Finance and Public Credit, for which the following requirements must be met:
Additionally, once the certificate is obtained, they must submit the progress of the investment project and meet the minimum employment levels to avoid losing the benefits.
It is important to note that taxpayers who choose to apply this incentive cannot concurrently apply other current tax incentives, such as those for the maquiladora industry, the optional regime for groups of companies, real estate investment trusts (FIBRAS), and other fiscal incentives contained in the Income Tax Law.
The Decree came into effect the day after its publication in the Official Gazette of the Federation, that is, on June 29, 2024.
Both the Tax Administration Service and the Ministry of Finance and Public Credit must issue general rules for the proper and correct application of the fiscal incentive, as well as guidelines for the application of the Decree, respectively.
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