MEXICO CITY – The Mexican government received an additional 76 billion pesos ($4.33 billion) in revenue during the first half of the year thanks to a tax break on capital repatriated from abroad, President Enrique Peña Nieto said Friday.
“I have decided to extend the application of the decree until October,” he said in a speech during an event to mark the 70th anniversary of the Army National Bank.
“The favorable result this initiative has received is another demonstration of confidence in our country,” the president said.
Under the terms of the decree, funds that are returned to Mexico and kept in the country for at least two years are taxed at a rate of 8 percent.
The standard rates of corporate and individual incomes taxes are 30 percent and 35 percent, respectively.
To be eligible for the tax break, the money must go toward industrial plant, technology research and development or financial mechanisms to increase overall investment in productive assets.