Compliance is at the core of what we do. Mexico is at least as regulatory complex as developed nations, if not more so. Our objective is to administer our clients’ business in Mexico ethically in conformity with laws and regulations. We operate behind the scenes to minimize the legal and regulatory complexities of Mexico for our clients. We maintain positive personal relationships with top levels of government at agency, city, state and federal levels.
We have opened many Mexican corporations. We can shorten what can be a several month cumbersome legal process to as little as a few weeks. We help identify the ideal type of Mexican entity structure that will be consistent with your foreign tax objectives. Clients can either operate under their own legal entity in Mexico or alternatively operate under a TACNA legal entity shared among multiple client operations. In either scenario, our clients maintain effective control of the plant and its operations.
The IMMEX Program is a benefit that foreign manufacturers can apply for, which allows the temporary importation of materials that are used in an industrial process or service. Manufacturers in Mexico under the IMMEX program produce, transform, repair or package foreign goods imported temporarily for subsequent export, without the need for payment of import tax, countervailing duties and value added tax, if certified.
In 2013, the Mexican legislature passed a tax reform eliminating the exemption of Value Added Tax (VAT) for temporary imports previously available to IMMEX companies. The change resulted in a 16 percent VAT for all temporary imports. A certification framework was put in place to immediately credit VAT for temporary raw material and machinery imported to Mexico. Companies that demonstrate the required level of compliance in trade and tax matters are eligible for VAT certification by the Mexican tax authorities. The VAT certification is available in three tiers, A, AA, and AAA, each providing a higher level of benefit with an increased number of requirements. Manufacturers that obtain and retain their VAT certification do not pay Value Added Tax on their temporarily imported goods.
There are significant and intricate rules governing what can be imported and exported duty free to and from Mexico. Under the North American Free Trade Agreement, NAFTA, many items manufactured in Mexico, the U.S. or Canada can be imported and exported duty free. There is still, however, significant control and tracking necessary for such items. Non-NAFTA items exported to Mexico can be subject to significant duties. There are methodologies for reducing such duties for IMMEX companies. TACNA helps our clients minimize, and in many cases, eliminate most duties to and from Mexico.
In Mexico a company can receive an on-site compliance audit from any agency of government at any time. Some Mexican authorities can take an authoritarian approach during an audit of “guilty until proven innocent”. Government agencies such as Mexican IRS equivalent, Mexican customs, social security, environmental agencies, Mexico OSHA equivalent, fire department, and others can require on-site audits with little or no notice. TACNA manages government audits of client facilities to ensure a fairness of approach from authorities during the audit process and resolution in the most favorable manner possible.
