Establishing a manufacturing operation in Mexico brings with it a complex web of local tax requirements. Contrary to common belief, simply having a “permanent establishment” (PE) or a fixed place of business in Mexico does not automatically subject an organization to the income tax obligations of a Mexican resident. The tax implications are intricately tied … Continued
Interest in manufacturing in Mexico is hotter than ever. The Wall Street Journal (WSJ) reports that after a decline in foreign direct investment in 2020 due to the COVID. New investments in Mexico are at the strongest levels since 2013. Of the $32.1 billion in foreign direct investment during the first nine months of 2022, $11.6 billion … Continued
As companies prepare to launch operations in Mexico, many focus on the savings they’ll see in terms of ongoing operational expenses. However, it’s equally important to budget for one-time start-up costs. With appropriate upfront planning, these costs can be minimized, and your expansion into Mexico can move forward smoothly on time and on budget. In … Continued
Incentivizing foreign investment in Mexico is a priority for many Mexican states, as the economic development this brings drives job growth and infrastructure investments throughout the country. Economic development support is primarily driven by the private sector and Mexico’s state governments. In some cases, economic development agencies coordinate the region’s organizations and interests to ensure … Continued
Querétaro exemplifies many of the advantages of manufacturing in Mexico. From cost benefits to highly skilled workers, this small state in north-central Mexico has much to offer. In fact, foreign firms invested more than $1 billion in Querétaro in 2019 alone, much of it in manufacturing. Wondering what Querétaro might offer you? Below, we dive … Continued
After several years of discussion and negotiation, the U.S.-Mexico-Canada Agreement (USMCA) officially replaced the North American Free Trade Agreement (NAFTA) on July 1, 2020. The new free trade agreement brings with it a host of changes that will impact manufacturers across numerous industries, both those already operating in Mexico and those considering manufacturing here for its … Continued
Companies looking for a low-cost way to speed a product idea through manufacturing often turn to offshore or nearshore manufacturing. By moving production to another country, companies are able to capitalize on cost savings for labor and sometimes real estate. But what if you’re looking for more than just cost savings? What about companies looking for a … Continued
Furniture manufacturing has been a major industry in Mexico for decades and only continues to strengthen as the global demand for household and office furniture increases. Furniture industry forecasts predict demand in the U.S. market alone to reach $68.8 billion by 2022, increasing at a 2.6% annual growth from $60.5 billion in 2017, according to … Continued
For the first time, Mexico has become the United States’ top trading partner. According to data from the U.S. Census Bureau, Mexico’s trade with the United States in 2019 reached a total of $614.5 billion of combined exports and imports. That’s a 0.48% increase in trade between the two countries since 2018, cementing Mexico as the … Continued
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