Mexico Unveils New Cinema Industry Support Plan with 30% Tax Incentive

Mexican President Claudia Sheinbaum announced a new support plan for the nation's cinema industry on Sunday, which includes a 30% income tax incentive. Actress Salma Hayek Pinault joined President Sheinbaum on stage in Mexico City for the launch.

President Sheinbaum announced a significant new support plan for Mexico's cinema industry, featuring a 30% income tax incentive, with actress Salma Hayek Pinault present at the launch.

The initiative, coordinated with the Ministry of Finance and Public Credit (SHCP), aims to strengthen film and audiovisual production within Mexico. It officially came into force on the day of the announcement.

Key Incentive Details

• Tax Incentive: A 30% Income Tax (ISR) incentive for projects executed within Mexican territory.
• Maximum Cap: The incentive has a maximum cap of 40 million pesos ($2.3M) per project or process.
• Domestic Suppliers: A key requirement is that projects must include at least 70% domestic suppliers.
• Eligibility: The incentive is available to Mexican individuals and legal entities, foreign individuals and entities with a permanent establishment in Mexico, and foreign individuals/entities without a permanent establishment who produce through a Mexican resident entity.
• Eligible Projects:
  • Fiction or animated feature films and series episodes with a minimum verifiable expenditure of 40 million pesos ($2.3M).
  • Documentary feature films and series with a minimum expenditure of 20 million pesos ($1.1M).
  • Specific animation, visual effects, or post-production processes with a minimum expenditure of 5 million pesos ($291k) per process.

Strengthening Mexico's Creative Economy and Cultural Sovereignty

Minister of Culture Claudia Curiel de Icaza stated the plan seeks to attract high-value international productions while ensuring national productions remain in Mexico. This initiative is expected to strengthen the country's creative economy, cultural sovereignty, and the diversity of stories produced from Mexican territory.

The initiative is expected to strengthen the country's creative economy, cultural sovereignty, and the diversity of stories produced from Mexican territory, as Minister Curiel de Icaza noted its aim to attract international productions while retaining national ones.

Salma Hayek Pinault acknowledged her career's origins in the Mexican film community and expressed support for the new package of incentives, noting its potential to further strengthen the industry.