Maquiladora

activities – permanent establishment exemption clarified

On 28 March 2007, the 14th Regulation modifying the 2006 Fiscal Miscellaneous Regulations was published in the Official Gazette. The Regulation mainly clarifies Art. 4-A of the Income Tax Law Regulations on the permanent establishment exemption in respect of the maquiladora industry.

Mexico has adopted policies favouring the establishment of maquiladora companies, which process or assemble importe…