123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Business >> View Article

Traditional And Shelter Maquiladoras May Be Affected By Proposed Tax Reforms

By Author: Alan Russell
Total Articles: 53

The successful and modern manufacturing company scours the global economy for best practices and financial advantages for raw materials sourcing, manufacturing and selling locations, workforce value, and more, thus leading to a global supply chain that enables companies to maximize profits and minimize transportation and logistics costs related to the importation and exportation of inputs and manufactured products. These goals can be accomplished in Mexico by establishing either traditional or shelter maquiladoras.

While traditional maquiladoras are incorporated in Mexico as wholly-owned subsidiaries of a foreign parent, shelter maquiladoras enable foreign manufacturers to operate manufacturing facilities in Mexico under a business license held by a Mexican company. While the foreign company controls its core manufacturing functions, the “shelter company,” typically provides services that could be generally classified as G&A functions, as well as the provision of the physical infrastructure required by manufacturing concerns.

On September 8th president Enrique Peña Nieto presented a proposed tax reform package to the Mexican Congress for review. This proposed set of measures have to potential to impact both traditional and shelter maquiladoras.

Some of the measures being contemplated include:

Defining maquiladoras as entities for which ninety percent revenues are derived from exports. This proposal could have a significant affect upon maquiladoras that make a considerable volume of sales into the Mexican market, and could affect permanent establishment status as well as other favorable tax advantages

Shelter maquiladoras will continue to be protected from permanent establishment rules for the next three years. After this period there will be a reassessment of this point.

Maquiladoras would not withhold VAT tax from domestic suppliers. Cash flow of these manufacturers could possibly be affected by this measure.

However, while the proposed reforms, are just that “proposed,” companies contemplating manufacturing in Mexico, either through the establishment of a traditional maquiladoras or through shelter maquiladoras, should do their due diligence by informing themselves as to the fate of the proposed reform package submitted by the President of the Republic to the Mexican Congress on September 8, 2013.

By clicking on the link, readers can access a Price Waterhouse Cooper summary of the most noteworthy aspects of Mexico’s tax reform proposal for 2013.


K. Alan Russell, President and C.E.O. of the Tecma Group of Companies. made in Mexico, industry in Mexico,Mexico manufacturer

Total Views: 90Word Count: 376See All articles From Author

Business Articles

1. Role Of Logistik Headhunter In Commercial Domains
Author: Ansel Adams

2. Lean Specialized Personnel Consulting And Role Of Consultant
Author: Ansel Adams

3. Time To Glide
Author: Christy Whitman

4. 5 Powerful Tips How To Hire The Right Process Server
Author: Unknown Member

5. Dog Services In Hyderabad -kennels9
Author: multail

6. Production House In Hyderabad - Multaistudios
Author: multail

7. Honda Of Valley Stream
Author: Honda of Valley Stream

8. Get More Choices With Confidential Invoice Factoring
Author: Ian Moore

9. Spray Coaters
Author: sateesh

10. Go Green Skateboard Longboarding
Author: For more details :- Mustang paddle shifter, Steeri

11. Al Ramziah Group Offers The Best Interior Cont Uae Services As Per The Clients Requirement
Author: charltonremus

12. Design Your Own T-shirt With Your Own Pattern
Author: Rhett Landers

13. Top 5 Simple And Effective B2b Seo Tips To Follow In 2018
Author: Epromotionz

14. Why Wholesale Salmon Oil
Author: For more details :- cod liver oil bulk, private la

15. Economical Omron Plc Models Price Compare To Omron Dealers In Chennai| Data Trace Automation.
Author: DTA

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: