Update on Advance Pricing Agreements for maquiladoras
WHITE PAPER |
The 2014 Mexican tax reform enacted by the Mexican Congress had numerous unfavorable provisions for maquiladoras, and many saw an increase in their Mexican income tax liability. Proper planning is necessary to avoid further tax increases and should include considering changes to transfer pricing policies and how those changes may affect foreign-related parties.
2015 marked the year in which maquiladoras started preparing and submitting requests with Mexico’s tax authorities (Servicio de Administración Tributaria, or SAT) for an Advance Pricing Agreement (APA). This white paper summarizes the most recent developments in the subject matter.