Thursday, November 8, 2007

Mexico Issues Decree to Diminish Negative Effects of Flat Tax on Certain Industries, Including Maquiladoras

Mexico's Congress recently approved a tax reform package for fiscal year 2008 that includes the creation of a new single rate business tax, the IETU, which reflects the Mexican government's policy objective of collecting more revenue. In addition, on November 5, 2007 Mexican President Felipe Calderon issued a Tax Subsidy Decree (Tax Subsidy Decree) in order to diminish the negative effects of the IETU on certain industries, including the maquiladora export industry.



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