Insights

With the new Trump administration taking office, significant policy shifts are on the horizon, particularly for the manufacturing sector. Join Foley & Lardner LLP and In-House Connect on February 26 for a half-day webinar full of insights regarding policy shifts, supply chain, tariffs, international trade laws, and more.

On January 21, 2025, the Decree granting tax incentives in support of the national strategy known as "Plan Mexico," to encourage new investments that promote dual training programs and innovation was published in the Official Federal Gazette, with the primary goal of stimulating the relocation of companies and the reconfiguration of supply chains closer to the U.S. market, particularly in the manufacturing sector in Mexico.

It is expected that the next few years will be a challenging time for manufacturers in Mexico, with the automotive industry being particularly vulnerable as multiple pressure points come to a head.

The United States-Mexico-Canada Agreement automotive sector must be prepared to navigate a new set of requirements that will likely reshape supply chains, impact costs, and alter the competitive dynamics within the industry.

In order to promote investment, encourage economic growth, and the creation of formal jobs in the peninsular region of the Yucatan (where the Mayan Train will pass through) the Mexican Ministry of Treasury (SHCP by its acronym in Spanish) issued a Decree on June 28, 2024 that grants tax incentives and administrative facilities to taxpayers that invest and develop certain productive economic activities within the "Progreso I" and "Merida I" Industrial Parks located in the municipalities of Progreso and Merida in the State of Yucatan, Mexico (the Decree).

Through an amendment made to article 29-A of the Mexican Federal Tax Code, since 2022 the period during which taxpayers in Mexico could validly cancel invoices was limited, drastically restricting the tax effects of such cancellations.

The new General Law of Alternative Dispute Resolution Mechanisms recently became effective, which will allow companies and individuals to negotiate with tax and administrative authorities through alternative dispute resolution to resolve disputes that arise between them, before, during, and even after the processing of any lawsuit before the Federal Court of Administrative Justice.

In any type of transaction, it is usual for two parties to enter into a debtor/creditor relationship and use the legal concept of compensation as a method of payment for their respective debts, making it easy to comply with their obligations without the need for the movement of money.