1. 1© Rödl & Partner 27.08.2013
Successful together
Ciudad de México, 27. August 2013
Erfolgsfaktoren in der Luftfahrtindustrie – Potenziale der Deutsch-Mexikanischen Zusammenarbeit
Congreso Aeronáutico, Deutsch-Mexikanische Industrie- und Handelskammer (CAMEXA)

2. 2© Rödl & 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© Rödl & 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© Rödl & Partner 27.08.2013
Rödl & 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
People‘s 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© Rödl & 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© Rödl & 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© Rödl & Partner 27.08.2013
Regulatory Framework
Company foundation
Sociedad Anónima
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© Rödl & 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© Rödl & 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© Rödl & 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© Rödl & 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© Rödl & 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

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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

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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)

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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© Rödl & 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© Rödl & Partner 27.08.2013
1
• Ignoring soft factors such as the “mañana 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© Rödl & Partner 27.08.2013
Your contact
Mexiko-Stadt
José A. García
Torre Magenta (17th Floor)
Paseo de la Reforma 284
Col. Juárez
06600 Mexico, D.F.
Tel.: + 52 (55) 4739-2227
Fax: + 52 (55) 4739-2001
E-Mail: mexiko-stadt@roedl.pro
Puebla
José A. García
Torre JV III (5th Floor)
Vía Atlixcáyotl 5208
Col. Territorial Atlixcáyotl
72810, San Andrés Cholula, Puebla
Tel.: + 52 (222) 431-0027
Fax: + 52 (222) 431-0169
E-Mail: puebla@roedl.pro
Deutschland
Dr. Marcus Felsner
Straße des 17. Juni 106
10623 Berlin
Tel.: + 49 (30) 810 795-51
Fax: + 49 (30) 810 795-59
E-Mail: marcus.felsner@roedl.pro

19. 19© Rödl & Partner 27.08.2013
Your speaker
Dr. Andreas Voß is an attorney-at-law (admitted in Germany) and
Head of Legal Services at Rödl & 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 Rödl & Partner Andreas Voß was a partner in
a leading Anglo-American law firm in the area of cross-border
corporate transactions.
Dr. Voß 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 Voß, LL.M. (SLU)
Rechtsanwalt
Roedl & Partner S.C.
Torre Magenta (17th Floor)
Paseo de la Reforma 284
Col. Juárez
06600 México, D.F.
Tel.: + 52 (55) 4739-2227
Fax: + 52 (55) 4739-2001
E-Mail: andreas.voss@roedl.pro

20. 20© Rödl & 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.