Population | Labor Force | Taxes and Incentives | Unions | Type of Industry | Agriculture and Ranching
Fishing | Local Industry | Free trade agreements signed by Mexico
Population
Total Population in 2005
- 462,157 -
(15.28% of the State Total) |
| Growth/Rate/Year |
2.8% |
| Men |
227,932 (49.31%) |
| Woman |
234.225 (50.69%) |
Matamoros has the highest growth rate in Mexico with 119 twin plant (maquiladora) companies employing over 63,000 people in high-demand industries such as electrical, electronic, and automotive engineering and manufacturing.
A look at our employment statistics shows a well-rounded business community.
| Annual Labor Turnover Rate |
| Matamoros |
16.27% |
| Reynosa |
28.23% |
| Cd. Juarez |
39.41% |
Source: Secretariat of Economic Development
Labor Force
The workers of Matamoros are your best business allies. The average full-burden manufacturing wage is lower than that in the U.S.
Matamoros has accumulated nearly 30 years of experience in the Maquiladora industry, making it the third largest maquiladora center in Mexico with over 20 new companies establishing operations in the city within the last 18 months. A constant migration of workers from surrounding agricultural areas provides an abundant labor force for local industries.
Taxes and Incentives
The following information outlines the basic premise of the taxing system in Mexico. For more detailed information, please contact our office.
Value Added Tax
Value added tax functions similarly to our sales tax system in that the consumer of the goods or services ultimately pays the tax. The rate varies from 10% along the US/Mexican border region to 15% in the remaining areas. Certain business activities are zero rated for valued added tax purposes.
Throughout the normal business cycle as valued added tax is paid and collected, the net amount of collections over payments must be submitted to the Secretaria de Hacienda y Crédito Publico (SHCP). Conversely, the Ministry would consider the net payments over collections refundable. Valued added tax never represents a "cost" to the company but rather impacts the management of cash flows.
Asset Tax
Asset tax is currently 1.8% of total assets on the Mexican entity's books, less accumulated depreciation and accounts payable to Mexican vendors, with assets adjusted to include the effects of inflation.
Asset tax is treated as an alternative minimum tax. Taxpayers are required to pay the greater of income tax or asset tax.
Any excess of asset tax over income tax can be carried forward for ten years to offset income tax of future years but only to the extent that income tax exceeds the asset tax in such future years.
Keep in mind that under Revenue Ruling 91-45, the US Internal Revenue Service(IRS) held that the Mexican 1.8% asset tax is not a creditable foreign tax under US tax law.
Mexican Income Tax Rates
A Mexican corporation pays a flat tax rate of 35% on its worldwide income. If a corporation retains annual profits, the corporation can elect to pay 30% currently and another 5% when such profits are distributed. Corporate tax rate is applicable to Mexican corporations (Sociedad Anónima or "SA"), limited liability companies (sociedad de responsabilidad limitada or "SRL"), and professional corporations (sociedad civil).
IncentivesWhile each state may offer similar rebate and incentive programs, many have specialized programs developed for their particular region. It is interesting to note that cities in Mexico (Matamoros included) do not offer incentives as the State handles those responsibilities. The following is a list of tax rebates or incentives for business improvements within the State of Tamaulipas, Mexico where Matamoros resides.
- A scholarship program in place operated jointly by the State and the Federation.
- Real estate taxes to be paid locally are waived
- The payroll tax, as collected by the State Government is waived at least for a certain period of time.
- Acquisition of property tax reduced or eliminated when purchasing real estate.
- Reduction or elimination of the registration dues of real estate
- Subsidy on the costs of constructions of buildings.
- Training and employment subsidies on the wages to local employees provided.
Unions
All maquiladoras are unionized under the Mexican Workers Union (C.T.M.). Within CTM, companies can choose among 3 local unions for their labor supply. Unions help keep turnover in Matamoros the lowest on the border, which is currently less than 17% per year. All unions encourage on-the-job training that allows Matamoros' workers to remain competitive.
Type of Industry
Agriculture and Ranching
 Matamoros is known for their strong tradition in agriculture and ranching. Large expanses of cotton, corn, sorghum, and produce are grown all around the outskirts of the city while large ranches with all types of poultry and livestock graze in the hillside.
Fishing
 Ready access to the seacoast and numerous riverbanks make fishing a popular sport among the locals. However, Matamoros has been able to harness this resource making it into one of the most important industries for the economy.
Local Industry
Matamoros has worked hard to develop a long list of industries that complement each other and bring prosperity to the region. Some of these industries include: plastic injection molding, machining tool shops, metal stamping, packaging products, metal coating and finishing, print shops, electric and electronic component assembly.
Free trade agreements signed by Mexico
Mexico has worked diligently to develop and enhance free trade agreements not only with the United States but also with other countries around the world. These agreements translate into additional tools companies can utilize to avoid certain taxes or fees while allowing for products to be shipped across borders quickly.
A list of curret trade agreements are:
- The North American Free Trade Agreement
- The Mexico-Chile Free Trade Agreement
- The Group of Three Free Trade Agreement (Mexico, Colombia and Venezuela)
- The Mexico-Costa Rica Free Trade Agreement
- The Mexico-Bolivia Free Trade Agreement
- The Mexico-Nicaragua Free Trade Agreement
- The Mexico-Israel Free Trade Agreement
- The Mexico-European Union Free Trade Agreement
- The Mexico-Honduras, El Salvador & Guatemala Free Trade Agreement
Mexico is currently negotiating Free Trade Agreements within the Free Trade Area of the Americas (ALCA), which includes Ecuador, Panama, Peru, Belize, Trinidad & Tobago and the Dominican Republican.
Population | Labor Force | Taxes and Incentives | Unions | Type of Industry | Agriculture and Ranching
Fishing | Local Industry | Free trade agreements signed by Mexico
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Matamoros 
