Dear clients and friends,

Last May 22, 2025, the Official Gazette of the Federation published the decree by which fiscal incentives are granted in the “Economic Development Sectors for Well-Being” (the “Decree”).

The decree aims to encourage investment and promote economic development in priority areas, which the Ministry of Economy defines based on state proposals and committee evaluations, called Economic Development Sectors for Well-being (the “Sectors”), to attract investment, generate employment, and strengthen the local economy.

The main tax incentives granted are:

(i) Immediate 100% deduction of the original amount of investments in new fixed assets with a minimum useful life of 2 years, for income tax purposes. The benefit will last for 5 years, ending on September 30, 2030, and applies to taxpayers who start or operate within the Sectors, subject to prior authorization; and

(ii) Additional 25% deduction for expenses on training or innovation. Training refers to providing technical or scientific knowledge related to the taxpayer’s activity. Innovation refers to expenses related to investment projects aimed at obtaining patents, registering utility models, or securing initial certifications required to become suppliers of such goods.

To be eligible for the above incentives, you must:

• Have a positive opinion on tax compliance.
• Have a tax address within the Sectors.
• Submit an authorization granted by the federal entity, based on certain requirements to be established by the Intersectional Promotion Committee.
• In order to be eligible for the additional 25% training tax incentive, you must have an agreement with the Ministry of Public Education to certify the dual education of workers.

For any questions or advice regarding this matter, our team of experts is available at the following emails:

Paul Kavanagh: paul@k-g.com.mx

Luis Kanchi: Lkanchi@k-g.com.mx

Miguel Alonso: malonso@k-g.com.mx