Mexico lures undeclared cash with tax plan, eyes $10 billion intake

January 17, 2017
342 Views

Mexico said on Tuesday it will offer holders of undeclared capital abroad tax incentives to bring it home in a bid to lure some $10 billion in investment and steel itself against potential shocks from the incoming Trump administration.

Confirming a Reuters report, the government said it will offer an 8 percent repatriation tax on those funds returning to Mexico in six months, provided they go into investments including fixed assets and property for at least two years.

The 8 percent tax, which is well below Mexico’s top income tax rate of 35 percent, must be paid 15 days after money is transferred, President Enrique Pena Nieto’s office said in a statement ahead of an expected announcement later on Tuesday.

The government said the powerful CCE business lobby estimated the plan could yield $10 billion in investment.

Latin America’s second-largest economy is facing pressure from U.S. President-elect Donald Trump, who is looking to cut taxes and has threatened a hefty border levy on companies that ship Mexican-made goods to the U.S. marketplace.

Mexico’s move, which was floated last week, is in line with similar moves by both Chile and Argentina.

(Reporting by Alexandra Alper; Editing by Simon Gardner and Sandra Maler)

Get our best news stories straight into your inbox!

Enter your email address below:

Don't worry, we don't spam!

You may be interested

10 ways to create your own love story in Vallarta-Nayarit
Puerto Vallarta News
shares104 views
Puerto Vallarta News
shares104 views

10 ways to create your own love story in Vallarta-Nayarit

Vallarta Daily News - Feb 20, 2017

This past Valentine’s Day has left us in a haze of love, thanks to all the couples who walked along…

Stolie Returns, Dwight Blake gets ‘Intimate’ and  Geo & Lobo unite
Arts & Culture
shares66 views
Arts & Culture
shares66 views

Stolie Returns, Dwight Blake gets ‘Intimate’ and Geo & Lobo unite

Vallarta Daily News - Feb 20, 2017

Entertainer Dwight Blake presents An Intimate Experience at Incanto, showcasing many favorite artists for one night only on February 23…

Transgender people in Ecuador finally cast vote according to their gender identity
LGBT
shares54 views
LGBT
shares54 views

Transgender people in Ecuador finally cast vote according to their gender identity

Reuters - Feb 20, 2017

Ecuadorean transgender people on Sunday voted for the first time according to their chosen gender, in what activists say are…