0% TAX
All film/video productions shot in Mexico and whose primary exploitation will be done outside Mexico are considered an “export product” and will be exempt from Value Added Tax (VAT). All your expenses for a 0% VAT have to be billed by one company, and that company needs an authorization from the IRS (SAT) prior to invoicing the project.
EFICINE
A tax incentive is granted to the income taxpayers, consisting in a fiscal credit equivalent to the amount that these taxpayers contribute during the corresponding fiscal year to investment projects for domestic cinematographic production, against the income tax or the asset tax charged to them in the fiscal year said credit is determined. Such incentive may in no case exceed 10% of the income tax charged for the fiscal year immediately preceding the one of its application.
For more information on EFICINE, please do not hesitate to contact us.
OTHER INCENTIVES
Some states and cities also offer small incentives, especially for feature film projects shot in their jurisdiction. These incentives may include lodging and transportation during location scouting, special discounts on some services, etc. These incentives are not always available and need to be reviewed on a particular basis.
For more information on Incentives, please visit the Mexican Film Commission – COMEFILM website.
