Sheinbaum, joined by Salma Hayek, unveils tax incentive to boost film industry

President Sheinbaum announced a caller taxation inducement to boost movie accumulation successful Mexico, with histrion Salma Hayek joining her astatine the lawsuit to observe what she called a “historic opportunity” for the country’s cinema industry.

The programme offers a recognition against income taxation (ISR) equivalent to 30% of expenditures made successful Mexico, with a bounds of 40 cardinal pesos (US $2.3 million) per project.

Hayek, 1 of Mexico’s astir celebrated actresses, praised the inaugural during the announcement, noting that the movie manufacture has grown contempt small to nary enactment from erstwhile governments.

“I deliberation Mexican cinema was neglected for a agelong time, and acknowledgment to Mexican endowment that ne'er gave up, we haven’t conscionable survived, but we’ve grown contempt the implicit deficiency of support,” Hayek told reporters.

“I privation to archer you that I judge nary 1 tin vie with us. With this support, we are unparalleled. There is nary state successful the world, none, that has our diversity. Perhaps what we person been lacking is this president,” she said, gesturing toward Sheinbaum. 

Sheinbaum explained that the inaugural aims to boost Mexican cinema, peculiarly autarkic productions, portion diversifying content, promoting works successful Indigenous languages and ensuring much transparent usage of resources.

“This inducement programme includes a authorities committee that aims to enactment the improvement of productions that different wouldn’t person the accidental to exist,” Sheinbaum said.

She added that the inducement volition beryllium disposable for planetary productions arsenic agelong arsenic they employment Mexican talent, “so that an planetary accumulation doesn’t conscionable get with everything and leave, but alternatively develops each the endowment we person successful Mexico.”

The inducement requires that astatine slightest 70% of supplies — including services, endowment and spending — are of Mexican origin, successful an effort to curb planetary productions bringing everything to sprout successful Mexico and past leaving. (Hazel Cárdenas/Presidencia)

To qualify, astatine slightest 70% of supplies, including services, endowment and spending, indispensable beryllium of Mexican origin, ensuring benefits stay with Mexican companies. 

Eligible projects include:

• Feature-length fabrication oregon animated films and bid with a verifiable minimum expenditure of 40 cardinal pesos (US$ 2.3 million);
• Feature-length documentaries and bid with a minimum expenditure of 20 cardinal pesos (US$ 1.2 million); and, 
• Some animation, ocular effects oregon post-production processes with a minimum expenditure of 5 cardinal pesos (US$ 290,000) per process.

The inducement volition beryllium disposable to Mexican citizens, foreigners with imperishable residence successful the state and foreigners without imperishable residence who transportation retired accumulation done a Mexican resident.

The programme besides establishes an archiving argumentation to document, preserve, restore, digitize and disseminate Mexico’s audiovisual practice collection.

With reports from CNN