The Mexican Ministry of Finance has announced the launch of new tax incentives for companies that invest in one of the 10 development poles (industrial parks) located in the so-called Interoceanic Corridor of the Isthmus of Tehuantepec, which is located in the southeast of the country between the cities of Coatzacoalcos on the Gulf of Mexico and Salina Cruz on the Pacific Ocean. The tax incentives include:

• Total exemption from income tax (ISR) during the first 3 years of operation, followed by a 50% ISR reduction in years 4, 5, and 6, which may be increased up to a 90% reduction if employment goals established in the corresponding guidelines are reached;
• Accelerated depreciation of investments during the first six years of operation; and
• VAT exemption on operations carried out within the development poles, and between them, as well as the recovery of VAT paid on purchases made outside the poles for four years.

In addition to the new tax incentives, companies will be able to access existing benefits in terms of foreign trade, such as the VAT exemption on temporary imports of inputs, the 0% rate on the export of goods or services, and administrative facilities that reduce costs.