The Tecma Group ensures its Mexico manufacturing clients’ competitiveness by obtaining Mexican VAT tax exemption.
One of the consequences of the broad tax reforms passed last year by the Mexican Congress is that companies operating as maquiladoras in Mexico that do not go through a defined IMMEX certification process must pay a value-added tax of sixteen percent on temporary imports. Companies that successfully apply for and receive IMMEX certification are exempted from making such payments.
To qualify as an IMMEX company under current taxation statutes, manufacturers must be audited by Mexico’s Tax Administration Service (SAT) to ensure that eighty percent of the goods that they produce in Mexico are exported, for the VAT tax exemption to be applicable.
The Tecma Group of companies recently made application for Mexican VAT tax exemption for two of its operating entities, Integrated Maquila Solutions, S de RL de CV and Elamex de Torreon, SA de CV, passed the required IMMEX audit and received its certification, which has secured a sixteen percent tax exemption for the companies manufacturing as maquiladoras under the auspices of its Mexico Manufacturing Shelter Partnership (MSMP). The work required to gain the exemption was performed by Tecma’s in-house Mexican Customs brokers, David Romo and Carmen Ramirez.
According to the Tecma Group of Companies’ president and CEO, Alan Russell, “The IMMEX certification of two of our companies’ Mexican entities in accord with the requirements set by last years’ tax reform legislation will be a critical contribution to keeping our shelter company clients’ manufacturing operations competitive in their respective industries. Exemption from the payment of Mexican VAT tax will preserve manufacturers’ cash flow, as well as will eliminate their exposure to charges related to money borrowed to finance the purchase of raw materials and inputs used in their production processes.”
ABOUT THE TECMA GROUP OF COMPANIES
The Tecma Group of Companies, Inc., headquartered in El Paso, Texas provides services that have enabled firms from a wide range of industries to establish and maintain manufacturing in Mexico operations for almost three decades. Under its Mexico Shelter Manufacturing Partnership (MSMP) companies control and focus on their core, value-added functions, while Tecma tends to their human resource, payroll, accounting, logistics, and other needs that, although important, are not part of the manufacturing process.