Mexico: Permanent establishments under IMMEX program | KPMG Global
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Mexico: Reminder of deadline, permanent establishments under IMMEX program

Mexico: Permanent establishments under IMMEX program

Foreign residents conducting "shelter maquila" (a special type of maquila program) operations under the IMMEX program in Mexico have until 31 December 2017 to make a decision concerning their status and operations. Such entities generally have been able to conduct operations in Mexico without having to establish a permanent establishment. However, under rules issued in late 2015, foreign residents can continue their manufacturing contracts in the shelter maquila operations for a four-year period (measured from 1 January 2014) provided that they take certain action steps before the four-year period expires 31 December 2017.


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In general, tax incentives under the Industria Manufacturera, Maquiladora y de Servicios de Exportacion (IMMEX) program have provided certain maquila regime benefits for foreign entities—for instance, the availability of transfer pricing relief, and no requirement for a permanent establishment (PE).

The shelter maquila program has been available in fewer instances, and tax rule changes in late December 2015 set up a four-year opportunity for the foreign entity to consider the continuation of the IMMEX program benefits. After the expiry of the four-year period ending 31 December 2017, the foreign resident must

  • Start its own maquila operations, either by incorporating a new company, acquiring the existing maquila company or transferring operations to another maquiladora 
  • Continue with the existing maquila operations and acknowledge the existence of a PE in Mexico, for which registration must be completed, or 
  • Continue with the existing maquila operations, acknowledge the existence of a PE in Mexico, and pay the corresponding accrued income tax (impuesto sobre la renta)  

The qualifying exercise of this option—assuming all requirements are satisfied—will be effective 1 January 2018.


Read a 2017 report (Spanish) prepared by the KPMG member firm in Mexico

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