Mexico announces new tax and credit support for MSMEs

Mexican Senator Lorenia Valles has endorsed new federal measures aimed at strengthening micro, small, and medium-sized enterprises (MSMEs), which she described as the engine of the national economy. MSMEs represent 99.8% of businesses in Mexico and contribute more than 50% of the country's GDP.

Following announcements by President Claudia Sheinbaum, the new initiatives include significant tax and administrative relief. Key measures involve a maximum income tax (ISR) rate of 2.5% without the requirement of an annual declaration, and an option for a fixed 7% value-added tax (IVA) rate. Additionally, the government aims to streamline employer procedures with the Mexican Social Security Institute (IMSS), specifically regarding affiliations and fee payments.

Under the 'Plan México' framework, the government seeks to provide financing to 30% of MSMEs through development banks. Nacional Financiera and Bancomext will offer competitive credit lines ranging from 500,000 pesos over three years to 30 million pesos over 15 years. The program also includes training in financial inclusion, entrepreneurship, and foreign trade.