Taxes encountered by a fast-food franchise in Mexico and the United States: A comparative analysis

Anabel Nunez, University of Texas at El Paso

Abstract

At this time, Mexico and the United States have substantial differences in their tax systems. A potential investor must evaluate, among other factors, the taxes of the country in which it is intended to invest. ^ The purpose of this report is to determine the differential effects of taxes on a company located in El Paso, Texas, United States versus one located in Ciudad Juarez, Chihuahua, Mexico. A hypothetical fast-food local, state and Federal taxes, licenses and permits are analyzed over a period of ten years. ^ First, the general data of the fast-food company and its projected income statements are presented. Then, the enterprise's local, state, and Federal obligations are calculated for both places of businesses. Next, all the enterprise's obligations in El Paso, Texas, United States are compared with the enterprise's obligations in Ciudad Juarez, Chihuahua, Mexico. And finally, the conclusions of the study are offered. ^

Subject Area

Economics, Finance|Education, Curriculum and Instruction

Recommended Citation

Nunez, Anabel, "Taxes encountered by a fast-food franchise in Mexico and the United States: A comparative analysis" (1992). ETD Collection for University of Texas, El Paso. AAIEP26243.
http://digitalcommons.utep.edu/dissertations/AAIEP26243

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