ANNOUNCEMENT 05 Dec 2011In December 2011, the government of Mexico announced a targeted tax change.
NUMBER OF INTERVENTIONS
UNCTAD (2011) Introduces tax incentives for foreign film production. http://investmentpolicyhub.unctad.org/IPM/MeasureDetails?id=588&hubc=null&rgn=&grp=&c=109%2C128&t=&s=&df=&dt=&pg=3&map=false&isSearch=true
On 5 December 2011, the government of Mexico launched a tax incentive program, specifically dedicated to foreign film production activities on Mexican's soil. The monetary value of the program was set at US $20 million for 2011 and US $40 million for the following year. The program was established to be managed by the Mexican film financing agency Imcine and the Mexican trade and investment body ProMexico. The core scope of the program was to provide film productions that exceed the amount of US $5.5 million with: 1) tax rebates of 7.5 percent and 2)10 percent IVA (value-added tax) write offs.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.