Executive Order For The Repatriation Of Funds In 2017

On January 18, 2017, there was published in the Federal Official Gazette an "Executive Order providing for income tax incentives for the repatriation of deposits or investments maintained abroad" (the "Order"), so as regularize the taxpayer's tax liability by the payment of the income tax at a reduced rate and with no additional government charges.

The Order contemplates a tax incentive for taxpayers who are residents of Mexico on income derived from direct or indirect investments (such as corporate structures) mantained abroad up to December 31, 2016.

The tax incentive consists in applying an 8% income tax rate (without inflation adjustments or government charges) on income and investments being repatriated into the county, within six months following the effective date of the Order. Taxpayers are required to invest such income and investments, within two years, in any of the following: