Mexico unveils tax break plan for southern business corridor
Mexico on Monday pitched a series of tax incentives aimed at luring companies into investing in a business corridor that President Andres Manuel Lopez Obrador is developing in a southern isthmus in hopes of competing with the Panama Canal.
The finance ministry said companies that invest in the so-called Inter-Oceanic Corridor connecting the Pacific port of Salina Cruz in Oaxaca state with the Gulf coast hub of Coatzacoalcos in Veracruz state will not need to pay income tax during their first three years of operations.
For the following three years, companies will only have to pay half of the normal income tax, the ministry said in a statement, adding they could get a discount of up to 90% if they met certain employment goals.
The measures also include accelerated depreciation of investments during the first six years of operation.