- 1. 1 Rdl & Partner 27.08.2013 Successful together Ciudad de
Mxico, 27. August 2013 Erfolgsfaktoren in der Luftfahrtindustrie
Potenziale der Deutsch-Mexikanischen Zusammenarbeit Congreso
Aeronutico, Deutsch-Mexikanische Industrie- und Handelskammer
(CAMEXA)
2. 2 Rdl & Partner 27.08.2013 Overview 03 Free Trade
Agreement Mexico-EU (MEUFTA) 02 Regulatory Framework Entry Options
Labor Law Work Permit / Immigration Tax System 01 About us 04 IMMEX
Program 05 Common Pitfalls 06 Your Contact/ Speaker 3. 3 Rdl &
Partner 27.08.2013 We are a one-of-a-kind success story from
Germany Founded in 1977 in Nuremberg Sustained growth present in
major industrial centres of the world with 91 wholly owned offices
in 40 countries Today No. 6 in Germany and one of the leading
professional services firms worldwide Integrated services offer
comprising audit, legal, tax, management and business consulting
Extensive expertise in transactions Focus on growth markets leading
positions in China, Eastern Europe and the US Most familiar with
your culture and language Designed to assist family owned business
organizations in their global expansion 4. 4 Rdl & Partner
27.08.2013 Rdl & Partner worldwide 3.500 colleagues - 91offices
- 40 countries Austria Belarus Brazil Bulgaria Croatia Czech
Republic Estonia France Georgia Germany Hong Kong Hungary India
Indonesia Italy Kazakhstan Latvia Lithuania Mexico Moldova Peoples
Republic of China Poland Romania Russian Federation Serbia
Singapore Slovakia Slovenia South Africa Spain Sweden Switzerland
Thailand Turkey Ukraine United Arab Emirates United Kingdom USA
Vietnam 5. 5 Rdl & Partner 27.08.2013 Our offices in
Mexico-City and Puebla Only German professional services firm in
Mexico Offices in Mexico-City and Puebla Latin American service
team based at German headquarters Tailor-made solutions for foreign
direct investment audit and accounting, legal and tax consulting,
business process outsourcing Investment consulting in Mexico
Consulting in all legal aspects within NAFTA, MEUFTA and IMMEX
Advice on business process outsourcing in Mexico Advice on transfer
pricing strategy 6. 6 Rdl & Partner 27.08.2013 Regulatory
Framework Entry Options Local Subsidiary Wholly owned subsidiary
Joint Venture Representation Liaison Office Branch Office
Distribution Commercial Agent Importer/ Exporter German Corporate
Mexico 7. 7 Rdl & Partner 27.08.2013 Regulatory Framework
Company foundation Sociedad Annima Sociedad de Responsabilidad
Limitada Capital De facto no minimum De facto no minimum Members
Min. 2 Shareholders 2 50 Partners Liability Limited to equity
participation in the company Limited to the agreed contribution of
the partners Comisario Obligatory Optional Wholly owned Subsidiary
Optional C.V. = Variable Capital capital divided into a fixed and a
variable capital, which can be increased and decreased with a
minimum of formalities 8. 8 Rdl & Partner 27.08.2013 Guiding
principle: contracts for an indefinite term Termination of
employment only possible if there is a legal cause for the
dismissal Right to choose between reinstatement or severance
compensation for unjustified dismissal 10 % compulsory Employees
Profit Sharing from taxable income (PTU) Compared to Germany less
vacation days Premium of 25 % of regular pay for vacations
Christmas bonus equivalent to 15 days pay (must be paid before
December 20 each year) Social security contributions are incurred
by both the employer and the employee. But significant part is paid
by the employer (represent 20 % - 30 % of the payroll costs)
Regulatory Framework Labor Law I - Labor relationship and social
security Amendments to Labor Law in force since December 1st 2012
9. 9 Rdl & Partner 27.08.2013 Trial period for contracts of
indefinite term Restriction on outsourcing as working regimen
Modalities of the remuneration Termination/annulment of the
contract Limitations on indemnification in case of court
proceedings Extension on employer obligations Legal regulations for
expatriate Labor union Regulatory Framework Labor Law II -
Amendments to Labor Law since December 1st 2012 10. 10 Rdl &
Partner 27.08.2013 Regulatory Framework Work Permit / Immigration
Foreigners intending to work in Mexico may apply for the following
types of visa: Visitante: Residence permit "Visitante" can not be
extended Residente: Visa must be requested at the Mexican Consulate
/ Embassy Travelers must apply within 30 days at the local
immigration office for a residence card Visitante Residente-
Temporal Residente- Permanente Length of stay 180 days Up to 4
years permanent Multiple entries No Yes Yes Remunerable work Yes
Yes Yes 11. 11 Rdl & Partner 27.08.2013 Corporate Income Tax
(ISR) Flat Tax (IETU) Value Added Tax (VAT) Rate 30% 17.5% 0%:
medicines, exports 11%: border region 16%: other activities Filing
monthly monthly monthly Basis worldwide income operates under cash
flow method sale/purchase Federal Level Taxation of companies at
federal and state level Regulatory Framework Tax System I Identical
taxation rates for S.A. and S. de R.L. 12. 12 Rdl & Partner
27.08.2013 Other considerations Double Tax Treaty with USA and
Germany Annual tax return must be filed within the first 3 months
of the following NO extensions are available Filing of financial
statement with tax opinion (Dictamen fiscal) of an independent
public accountant. This procedure has to be followed by taxpayers
with: Gross income > ca. 2,3 Mio. EUR Assets > ca. 4,5 Mio.
EUR Number of employees > 300 Tax payers are obliged to carry
out an annual transfer pricing study if they have transactions with
related parties Regulatory Framework Tax System II 13. 13 Rdl &
Partner 27.08.2013 Further considerations Losses can be carried
forward up to 10 years Adjustment for inflation No withholding tax
on dividends paid by Mexican companies, if the dividends are from
the taxed profits (from the CUFIN account) Royalties paid to a non
resident are subject to withholding tax 30% for patents and
trademarks 25% for all other royalties Regulatory Framework Tax
System III 14. 14 Rdl & Partner 27.08.2013 Goal Benefits
Requirements Elimination of custom duties Elimination of non-tariff
barriers on imports and exports Free Trade Agreements, in
particular MEUFTA and NAFTA, can be combined Reduction of
manufacturing costs and improvement of competitiveness MEUFTA -
Certificate of Origin and Rules of Origin must be maintained Boost
bilateral trade and investment and create exceptional conditions
for business development between Mexico and the EU Free Trade
Agreement Mexico-EU (MEUFTA) 15. 15 Rdl & Partner 27.08.2013
IMMEX Program I IMMEX Program is defined as an Who can use the
IMMEX Program? instrument to promote foreign direct investment
through custom and tax incentives Following companies: Holding
Manufacturing Service Shelter Outsourcing 16. 16 Rdl & Partner
27.08.2013 Authorization from the Ministry of Economy Export over
500,000 USD in a one year period or export 10 % of the total
revenues At least 30% of the machinery and equipment must be owned
by the foreign company Submission of an annual electronic report of
total sales and exports Submission of monthly turnover-report for
statistical purposes Requirements Benefits Avoid the payment of VAT
Temporary import of raw materials, machinery and equipment and
administrative equipment without paying any import duties or VAT
Eased transfer-pricing rules Automatic inscription in the National
Importers registry without application IMMEX Program II 17. 17 Rdl
& Partner 27.08.2013 1 Ignoring soft factors such as the maana
mentality 2 Caution while employing individuals - customize your
contracts to local law 3 Keep up to date with constantly evolving
legal and tax changes 4 Doing business in Mexico is part of social
life 5 Bring patience! 6 Imposing German standards for
administration, timeline, infrastructure Common Pitfalls 18. 18 Rdl
& Partner 27.08.2013 Your contact Mexiko-Stadt Jos A. Garca
Torre Magenta (17th Floor) Paseo de la Reforma 284 Col. Jurez 06600
Mexico, D.F. Tel.: + 52 (55) 4739-2227 Fax: + 52 (55) 4739-2001
E-Mail: [email protected] Puebla Jos A. Garca Torre JV III
(5th Floor) Va Atlixcyotl 5208 Col. Territorial Atlixcyotl 72810,
San Andrs Cholula, Puebla Tel.: + 52 (222) 431-0027 Fax: + 52 (222)
431-0169 E-Mail: [email protected] Deutschland Dr. Marcus Felsner
Strae des 17. Juni 106 10623 Berlin Tel.: + 49 (30) 810 795-51 Fax:
+ 49 (30) 810 795-59 E-Mail: [email protected] 19. 19 Rdl
& Partner 27.08.2013 Your speaker Dr. Andreas Vo is an
attorney-at-law (admitted in Germany) and Head of Legal Services at
Rdl & Partner in Mexico. After his studies at the University of
Bielefeld, Germany, and the Saint Louis University School of Law,
Missouri, U.S.A., he practiced as a lawyer in the areas of German
and European Company Law, Mergers & Acquisitions, Banking &
Capital Markets and Corporate Finance. Before joining Rdl &
Partner Andreas Vo was a partner in a leading Anglo-American law
firm in the area of cross-border corporate transactions. Dr. Vo is
the author of several scholarly publications and a frequent speaker
at conferences in Germany and at international level on Mexico and
Latin America in general. Dr. Andreas Vo, LL.M. (SLU) Rechtsanwalt
Roedl & Partner S.C. Torre Magenta (17th Floor) Paseo de la
Reforma 284 Col. Jurez 06600 Mxico, D.F. Tel.: + 52 (55) 4739-2227
Fax: + 52 (55) 4739-2001 E-Mail: [email protected] 20. 20 Rdl
& Partner 27.08.2013 The Castellers de Barcelona The Castellers
are like us: every single individual counts when working together
and when supporting our clients.