SICT Announces New Fiscal Incentives for Interoceanic Corridor

The Mexican government launched a series of new fiscal incentives to promote investment in the Interoceanic Corridor’s development hubs. The government introduced a decree that aims to attract businesses and investment to the southeastern region of the country, where the Interoceanic Corridor will be constructed. 

The decree introduces a series of fiscal benefits for companies that choose to invest in one of its ten Development Hubs, explained SICT via a press release. The fiscal incentives are designed to foster economic growth in Mexico's southeast region and foster its regional development. The objective is to reduce regional inequalities and promote investment in the region, creating employment opportunities and increased wages for the local population.

The first incentive includes full exemption from Income Tax (ISR) for the first three years of operation. In years four, five and six, companies will pay only 50% of the ISR. This discount can reach up to 90% if the employment targets established in the corresponding guidelines are met. The second incentive offers an opportunity for accelerated depreciation of investments during the first six years of operation. The third will allow operations conducted within and between the Development Hubs to be exempt from Value Added Tax (IVA). Additionally, companies will be allowed to recover the IVA paid on purchases made outside the Hubs for a period of four years. 

Companies will also have access to existing benefits in foreign trade, such as the exemption of IVA on temporary imports of inputs, a 0% tax rate on exports of goods or services and administrative facilitations that reduce costs.

The plan will seek to push ongoing efforts of the Mexican government to drive investment in key areas, combat inequality and enhance economic growth in all regions of the country.

Mexico's Ministry of Economy (SE) recently announced a tender for six projects in the Interoceanic Corridor in Veracruz and Oaxaca. The corridor will seek to convert the Isthmus of Tehuantepec into a central hub for global trade and generate well-paid jobs in the south-southeast region of the country.

Raquel Buenrostro, Minister of Economy, presented the tenders for six of the 10 development poles for the corridor within the framework of the meeting “Towards the Bidding for the Development Poles of the Interoceanic Corridor of the Isthmus of Tehuantepec,” as reported by MBN.