Mexican Labor Law: Inflexibility of Workshifts and Special Shifts
2007-12-03

| International Law

Cancellation of Social Security Surcharges
2005-06-14

Based on recent changes to the Social Security Law (as of Dec. 20, 2001) companies willing to take advantage of the Debt Regularization Program must file a written request with the Social Security office by February 19, 2002, indicating their willingness to participate and benefit from such Program.

Jorge A. Garcia | International Law

Mexico Upgrades Laws on Security Interests: "Non-possessory Pledges are now Legal in Mexico"
2005-06-10

This Article was prepared by Jorge A. García, an attorney licensed to practice in Mexico, with Martin & Drought, P.C., San Antonio, TX. Martin & Drought, P.C. employs both U.S. and Mexican attorneys in their offices to better represent U.S. persons, companies and their subsidiaries in Mexico and to represent Mexican persons and companies in the U.S. Martin & Drought, P.C. has been providing international representation for the past 25 years. For more information please call Lic. Jorge A. Garcia at (210) 220-1335.

Jorge A. Garcia | International Law

Mexican Companies: Formation Process Simplified
2005-06-10

Effective March 1, 2002, the formation process for Mexican companies should be faster and less complicated. The so-called “fast-track” process will also apply to existing Mexican companies wanting to modify their Bylaws.

Jorge A. Garcia | International Law

Fees Payable To Non-Residents May Be Taxed In Mexico
2005-06-10

Mexico’s new Income Tax Law considers that a source of income exists in Mexico, when professional services by a non-Mexican resident e.g. a US company, are rendered within Mexico. This means that Mexico may tax fees payable to non-Mexican residents. As a result of such Mexican tax provisions, non-resident companies sending their employees into Mexico to render services, even if contracted for in the outside of Mexico, should carefully plan and structure their operations.

Jorge A. Garcia | International Law

A Short History of the Maquiladora Industry
2005-06-10

The maquila Program was initiated in 1965 during the Diaz Ordaz presidency as a means of attracting foreign investment, increasing exports, and fostering industrialization along the U.S.-Mexico border. At the outset, the foreign-owned maquiladoras were only granted limited privileges. However, the 1981 economic crisis and subsequent need for foreign investment made maquiladoras quite attractive to the Mexican government, and controls were lessened. Today, maquiladoras are one of Mexico's primary sources of domestic production, exports, and employment, and they continue to attract foreign investment from the United States, Canada, Europe, and Japan.

Hector Coronado De Anda | International Law

Mexican Companies Can Save on Social Security Taxes
2003-06-14

Pursuant to recent modifications published by the Mexican Government Mexican Companies can save on Social Security taxes, particularly on the premiums paid under the Insurance for Workers & Job related Risks (Seguro de Riesgo de Trabajo). The risk factor used in the calculation of the premiums can be reduced from 2.3 to 2.2 for those entities that obtain a security management system certification (the Certification) from the Mexican Department of Labor (MDOL).

Jorge A. Garcia | International Law

2002 Tax Changes Applicable to Maquiladoras
2002-06-14

At the request of the Maquiladora Industry, the new income tax law (ITL) includes in its transitory articles, rules that allow foreign residents who’s products are assembled and manufactured through companies with Maquila programs, not to be considered as permanent establishments so long that such Mexican companies comply with transfer pricing rules either by obtaining an advanced pricing agreement (APA) or by applying the “ Safe Harbor Rule”. Such rules apply for the 2002 and 2003 calendar years, and were previously only contained in the tax miscellaneous rules and only through the 2002 calendar year.

Jorge A. Garcia | International Law