Tecma Group provides input to Mexican federal taxation authority
Recently, senior management of the Tecma Group of Companies met with representatives of the Mexican federal taxation authority, the Servicio de Administracion Tributaria, or SAT, as well as officials from Mexico’s Ministry of Economics.
The primary purpose of the meeting was for the representatives from the SAT to familiarize the Mexican tax authority with the production occurring in the maquiladora industry on the U.S. – Mexico border, and to gain an greater understanding of how manufacturers operating under the IMMEX program in Mexico control inventories of imported items that are subsequently incorporated into finished products that are shipped for export to customers in the United States, as well as the world over.
In addition to the Tecma Group of companies, the Mexican federal taxation authority also consulted with the Toro Company, and BRK Electronics, while in Ciudad Juarez. Their goal was to get feedback from the largest border city and crossborder trade hub’s major maquiladora industry players that will enable the SAT to implement the newly adopted Mexican Fiscal Reform in ways that will be minimize disruption as regards the industry that is one of Mexico’s largest soures of employment and revenue generation.
One of the principal topics discussed during the meeting was the provision of the fiscal reform package that changed the rules pertinent to the application of Mexico’s value-added, or VAT, tax to the country’s export industry. Prior to the legislation’s recent passage, companies manufacturing in Mexico for export under the maquiladora, or IMMEX, regime, were exempt from paying the VAT on imported items that would subsequently be incorporated into exported finished products. The recently passed legislation eliminated this exemption, however. The Servicio de Administracion Tributaria, or SAT, will be conferring with the leading players in the maquiladora industry throughout calendar year 2014 for the purpose of developing a certification process by which legitimate exporters can qualify for continued exemption from the VAT.
This meeting between Mexican federal tax authority and the Tecma Group of Companies, as well as others that will take place over the course of the coming year are indicative of the Mexican government’s acknowlegement of the key role that the maquiladora industry plays in the overall Mexican economy. Earlier this year, the International Business Times projected that will attract between US$ 35 and 40 billion dollars in 2013 in foreign direct investment, FDI, with most of the capital influx going to Mexico’s manufacturing sector.
About Mexico’s Servicio de Administracion Tributaria (SAT)
The Tax Administration Service (SAT) is a decentralized agency of the Ministry of Finance and Public Credit of Mexico. It has the responsibility for implementing the tax and customs legislation, so that individuals and corporations contribute proportionately and equitably public spending.
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 production facilities in Ciudad Juarez, Mexico and beyond, for almost three decades. Under its Mexico Shelter Manufacturing Partnership (MSMP) companies control and focus on their core manufacturing functions, while Tecma tends to their human resource, payroll, accounting, logistics, and other needs that, although important, are not part of the manufacturing process. Sign up to receive Tecma’s information content via RSS feed.
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