Tax Competitiveness of the Maquiladora Industry
Table 1.10
Country
Regime
Mexico
Maquiladora
Corporate Taxes
30% IT
3% Reduction
17.5% IETU
Simplified Matrix of Promoting
Benefits
Regimes by Country
Benefits
Indirect Taxes
Foreign Trade
Export of goods imported
on a temporary basis
Other Taxes
Local Taxes
Exempt
IGI (MP)
IGI (MYE)
Applicable
IGE
Exempt
N/A
N/A
DTA
MXN$223
.176% (MYE
16% VAT
Exempt
CC
N/A
Prevalidation
MXN$161
per customs
declaration
Reduced rates
15% (1st. year)
China
Free zone
25% IT
7.5% (2nd.
and 3rd. years)
15% (subsequent
17% VAT
Exempt
II
Exempt
IE
Exempt
N/A
N/A
years)
34% IT
75% reduction
Brazil
Free trade
zone
PIS
Exempt
COFINS
Exempt
VAT
Exempt
IPI
ISR 24.2%
South Korea
Free trade
zone
OIC
Exempt (5 years)
50% reduction (2
subsequent years)
VAT
Exempt
||
88% Reduction
IE
Exempt
N/A
N/A
Exempt
ICMS
ΑΙ
Exempt (15
years)
Exempt
IE
Exempt
N/A
IR
Exempt (15
years)
II (MP)
Exempt
30% IT
Exempt (5 years)
IE
Thailand
Free zone
50% reduction (2
subsequent years)
VAT
Exempt
N/A
Exempt
II (MYE)
50% Reduction
ICAN
Exempt (10 years)
IT
ITBI
Costa Rica
Free zone
IRE
Exempt
Exempt
IUD
30% IT
Exempt (4 years +
2 additional years)
Sources:
1. Corporate and Indirect Tax Survey 2011. KPMG.
2. 2012 Mexican Income Tax Law.
3. Decree for the Development of the Maquiladora and Export Manufacturing Industry.
4. The Brazil Business- Manaus Free Trade Zone ( http://thebrazilbusiness.com/article/manaus-free-trade-zone).
5. Superintendencia da Zona Franca de Manaus (www.suframa.gov.br).
VAT
Exempt
(on purchase
of goods and
services)
Canon or
license
II (MYE)
Exempt
IE
Exempt
6. The Customs Department - Customs Incentives Programs (http://www.customs.go.th).
7. Thailand Board of Investment- Investment Promotion Privileges (http://www.boi.go.th).
8. Masan Free Trade Zone -Incentives (http://www.ftz.go.kr).
9. Korea Custom Service (http://customs.go.kr).
10. Managing Trade & Customs in China, 2011. KPMG.
11. Shangai Free Trade Zone-Policies (http://www.by.cpa.com).
12. Costa Rican Investment Promotion Agency (CINDE) - Régimen de Zonas Francas en Costa Rica.
Service
companies:
0.3% on sales.
Manufacturing
companies:
the amount
is determined
according to the
industrial ceiling
area
N/A
PT
Depends on
the municipality
where the
company is
locatedView entire presentation