VAT in Mexico is governed by the Value-Added Tax Act (Ley del Impuesto al Valor Agregado). It is the country’s main indirect tax and is applied at a standard rate of 16%, however there is a 0% rate for exports and the supply of local goods and services. As with any other indirect tax, VAT is not paid directly, but is transferred or charged to a third party until it reaches the final consumer. Levy VAT…
Labour market reforms undertaken in 2012 did not produce the intended results of facilitating the creation of formal employment in Mexico, essentially reforming workers’ rights to give employers more power over their staff. Four significant changes can be observed in articles 15 A, 15 B and 15 C, which, unsuccessfully tried to regulate outsourcing through third-party hiring or subcontracting, thus…
Opportunities for private companies in Mexico are supported by intellectual property regulations and the increasing use of PPPs to deliver infrastructure. The intellectual property legislation, improved by the North American Free Trade Agreement (NAFTA) and the local Agreements on Trade-Related Aspects of Intellectual Property Rights have benefited the control of intellectual property rights, patents…
The Mexican pharmaceutical industry has potential for the deployment of research and development (R&D) capital. Since 2010 the strategy of the Federal Commission for the Protection from Sanitary Risk (Comisión Federal para la Protección contra Riesgos Sanitarios, Cofepris), the regulatory body governing the sector, has enabled faster licensing of new products and allowed Mexico to become one…
Mexico has long recognised the importance of research and innovation to the development of a strong and sustainable economy. To date, however, the goal of boosting research and development (R&D) spending to 1% of GDP has remained somewhat distant, with public spending across a variety of programmes having an only limited effect on encouraging the development of new technologies and innovative companies.…
Since the mid-1990s, Mexico has undergone a remarkable structural transformation. From being relatively closed and heavily dependent on oil exports to drive growth and accrue foreign currency, the country has progressively liberalised and integrated into regional and global value chains, and is now party to a network of 12 free trade agreements with a total of 46 countries. Although economic openness…
At a time when a number of major Latin American economies, including Brazil and Venezuela, are heading toward recession, Mexico’s economy stands out in the region for its resilience. Projections for 2017 are couched in more uncertainty than is usual, however, in light of the lack of clarity over and the potential impact of policy changes in the US during the first year in office for US President
This chapter contains information on hotels, government agencies and other listings, as well as useful tips for visitors on a range of topics such as visa requirements, currency and transportation throughout Mexico.…
This chapter provides an overview of Mexico’s tax regime, covering areas of particular interest to investors such as individual and corporate income tax, dividend taxation, foreign operations, tax audits and other investor considerations. This chapter contains an interview with Ricardo González Orta, Partner, Deloitte México.…
