Maquila Tax Issues in Mexican Tax Amendment Proposal For 2014 Will Affect Operation And Cash Flow Of Maquila Program Holders
The amendment proposal presented to the Mexican Chamber of Deputies on September 8, 2013 by the head of the Executive Branch contains important amendments to the tax regime of maquila authorization holders. If approved as it stands by the Legislative Branch, the proposal would radically change the treatment of the value-added tax (“VAT”) within transactions between maquila companies (a factory run by a U.S. company in Mexico), as well as those between maquilacompanies and foreign residents, and would also […]