Thread: Mexico lures $10 billion undeclared cash with tax plan: Fears incoming Trump administ

Mexico lures undeclared cash with tax plan, eyes $10 billion intake

Tue Jan 17, 2017 | 4:07pm EST

MEXICO CITY

Mexico said on Tuesday it will offer holders of undeclared capital abroad tax incentives to bring it home in a bid to lure some $10 billion in investment and steel itself against potential shocks from the incoming Trump administration.


Confirming a Reuters report, the government said it will offer an 8 percent repatriation tax on those funds returning to Mexico in six months, provided they go into investments including fixed assets and property for at least two years.


The 8 percent tax, which is well below Mexico's top income tax rate of 35 percent, must be paid 15 days after money is transferred, President Enrique Pena Nieto's office said in a statement ahead of an expected announcement later on Tuesday.


The government said the powerful CCE business lobby estimated the plan could yield $10 billion in investment.


Latin America's second-largest economy is facing pressure from U.S. President-elect Donald Trump, who is looking to cut taxes and has threatened a hefty border levy on companies that ship Mexican-made goods to the U.S. marketplace.


Mexico's move, which was floated last week, is in line with similar moves by both Chile and Argentina.

http://www.reuters.com/article/us-me...-idUSKBN1512WA

I hope Mexico makes more efforts and succeeds to make their country better so their citizens don't feel the need to leave.

Wow!! It looks like Trump is already helping Mexico to see the light and a better way of running its country too!! Trump will be a great leader and set good examples for other countries. It's just so nice to have a really smart President who loves our country above all others, as a President should.