Foreign residents will not have permanent establishment for their legal and economic relationship with Maquiladoras if they are residents of a country which has in place a Tax Treaty with Mexico and if the Maquiladora complies with any of the following options:

• Option 1. To maintain contemporaneous documentation on transfer pricing adding to the result of such analysis a 1% on the net book value of the fixed assets owned by the foreign related company that are used by the Maquiladora in its activities.
  
• Option 2. To report a taxable income profit of at least the greater of the following values:
  1. 6.9% on assets used in the Maquiladora activity (including inventories and fixed assets owned by the foreign related party); or
  2. 6.5% on operating costs and expenses of the Maquiladora.
• Option 3. To maintain contemporaneous documentation on transfer pricing considering a return on the net book value of fixed assets owned by the foreign related company that is used by the Maquiladora in its activities.

Maquiladoras that elect options 1 or 3 may request an advanced pricing agreement (APA) to the Mexican tax authorities. However this APA will not be a requirement for the compliance with any of the mentioned options, as occurred in the past.

It is mandatory for the Maquiladora to comply with the transfer pricing rules.