As part of the economic package presented to the Mexican Congress by the Executive Branch in September 2015 is a proposal for an investment vehicle or trust that would support the energy and infrastructure sectors—an “FIBRA e” initiative. A legislative resolution was released on 29 September to further this plan. In general, such investment trusts could elect to apply the tax provisions that are applicable for real estate investment trusts (REITs).
Also, concerning value added tax (VAT), the trust would elect to determine VAT at the level of the trust, and not at the level of the trustees.
There are required measures that would have to be completed, such as the trust would need to be created pursuant to Mexican law. Also, 70% of the trust assets would need to be invested in Mexican entities, while the remainder could be invested in government securities. The primary purpose of the trust would be to invest in shares of Mexican companies—i.e., residents in Mexico for tax purposes. Certain requirements would have to be satisfied by these Mexican companies, including the activities conducted by them.
Read an October 2015 report (Spanish) prepared by the KPMG member firm in Mexico: Se crea FIBRA E para proyectos del Sector Energético
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