Law for the Promotion of Technological and Manufacturing Innovation
The "Law for the Promotion of Technological and Manufacturing Innovation" was recently approved and entered into force on June 5, 2023. This Law, grants benefits of exemption from Income Tax and Municipal Taxes to income obtained from certain activities, which are:
a) Programming, management, maintenance, consultancy and analysis of computer systems or software;
b) Development and marketing of cloud computing and data flow services; artificial intelligence, big data analysis; distributed ledger technology; cybersecurity solutions;
c) Technologies based on the manufacture of parts, materials and equipment or facilities, assembly, including manufacturing plants for technological equipment or hardware, semiconductors, communications technology, robotics, nanotechnology, aircraft and unmanned vehicles;
d) Engineering and systems technologies necessary to integrate basic industrial technologies into global production chains.
The beneficiaries of this Law may opt for the following tax incentives for a period of fifteen years:
a. Total exemption from Income Tax with respect to the benefited activities;
b. Exemption from all types of withholdings of Income Tax with respect to the benefited activities;
c. Total exemption from municipal taxes on the net assets filed by the beneficiaries;
d. Exemption from the payment of the Capital Gain, stipulated in articles 14 and 42 of the Income Tax Law;
e. Total exemption from the payment of Import Tariff Duties and taxes levied on the importation of goods, supplies, machinery, equipment and tools necessary for the development of the benefited activities.