Mexico Proposes Tax Incentives to Boost Film Industry
Mexican lawmakers propose tax incentives for foreign film productions. The goal is to boost the local film industry, create jobs, and attract international investment. The initiative offers tax certificates to foreign investors, which can be transferred to Mexican companies.
Representatives Alejandra Pani Barragán and Yeidckol Polevnsky Gurwitz, both from the Morena party, are championing an initiative aimed at invigorating foreign investment in Mexico's cinematographic and audiovisual production sectors. This proposal, currently under review by the Economy, Trade, and Competitiveness Commission, seeks to introduce a new segment within the existing law titled "Stimulus for Foreign Cinematographic or Audiovisual Works" and to add Articles 40 and 41 to delineate the framework for this incentive.
The core of this initiative is the provision of a financial stimulus to foreign investors engaged in producing films or audiovisual content on Mexican soil. The proposed mechanism involves issuing certificates by the tax authorities, equivalent to 20% of the total investments and expenditures made within Mexico directly related to the production. This stimulus is designed to be transferable, allowing foreign investors to pass these certificates on to Mexican nationals—either individuals or legal entities engaged in business activities. These recipients can then use the certificates to offset their Income Tax (ISR) liabilities for the year in which they receive the certificate.
