Mexico to Maintain Tax Breaks in Northern Border Regions and Introduce Tax Breaks in the South

Mexican President Andrés Manuel López Obrador reportedly announced on 27 November that he will be issuing a decree to maintain existing tax breaks provided in northern regions on the border with the United States. This includes extending the following to 31 December 2024:

• An income tax credit equal to 1/3 of the tax due for a period, which effectively reduces the corporate income tax rate from 30% to 20%; and
• A 50% VAT credit that can be applied directly at the time of a transaction and effe…