Mexico
The R&D Tax Credit proposed by Mexico is an incremental 30% reward., applied to R&D expenses
exceeding the average of the 3 previous years, in the limit of 50 million pesos (approx. 2 Million
euros).
| Mexico Incremental Tax Credit |
|
|---|---|
| 30 % ( QEN – (QEN-1 + QEN-2 + QEN-3) / 3 )
QE = Qualifying Expenses N = year of R&D expenses |
|
| Benefit Overview
|
Only increased R&D expenses will open the benefit for the tax credit. The average of the 3 previous years set the reference of standard R&D expenditures for the company. The benefit is then computed by the difference of the investments incurred in the concerned year to that average reference. |
| Eligible Claim Period
|
For each year, companies must present technical / scientific evidence, administrative documents and computations before end of February. This upfront approval is requested before proceeding to the use of the credit on the tax liability. |
| Historical Background
|
In 2020 the Mexican government and the National Council of Technology & Science (CONACYT) has decided a stimulus for Research and Innovation. |
| Ease of Application
|
To be approved, the claim needs: increasing expenses, strong innovation evidence, pe-approval form authorities. Following the approval, companies must follow a guideline for reporting achievements of the projects. |
| Regulating Body Policies
|
National Council of Technology & Science (CONACYT) supervises the incentive. |
| Eligible Costs | Most expenses engaged in R&D are included, such as salaries, prototyping and experimenting costs, tools, equipment, machinery, materials, and outsourced R&D, especially with public bodies (universities, R&D centres) |
| Issues to Consider | Strong Innovation and R&D indicators are expected, such as IP and cooperation with research organisms. |