The Income Tax Act

Original Language Title: Ley del Impuesto sobre la Renta

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Income Tax Law

LAW INCOME TAX

Published in the DOF on December 11, 2013

On the sidelines a seal with the National Shield, which reads: United Mexican States.-Presidency of the Republic.

ENRIQUE PEÑA NIETO, President of the United Mexican States, to its inhabitants known:

That the Honorable Congress of the Union, has served to address the following

DECREE

"THE GENERAL CONGRESS OF THE MEXICAN UNITED STATES, D E C R E T A:

VARIOUS PROVISIONS OF THE VALUE ADDED TAX LAW ARE REFORMED, ADDED AND REPEALED; THE LAW OF THE EXCISE DUTY ON PRODUCTION AND SERVICES; OF THE FEDERAL LAW OF RIGHTS, THE LAW IS EXPIDE OF INCOME TAX, AND THE SINGLE-RATE BUSINESS TAX LAW, AND THE CASH DEPOSIT TAX LAW, ARE OPENED

ARTICLES FIRST TO SIXTH. ..........

ARTICLE SEVENTH. The Income Tax Law is issued:

INCOME TAX LAW

TITLE I

GENERAL PROVISIONS

Article 1. Physical and moral persons are required to pay income tax in the following cases:

I.           The residents of Mexico, in respect of all their income, whatever the location of the source of wealth from which they come.

II.          Residents abroad who have a permanent establishment in the country in respect of income attributable to that permanent establishment.

III.         Residents abroad, in respect of income from sources of wealth located in national territory, where they do not have a permanent establishment in the country, or when they have such income, are not attributable to this.

Article 2. For the purposes of this Act, any place of business in which business activities are developed, partially or wholly, or provided services is considered to be permanent. Independent personnel. Permanent establishment, inter alia, of branches, agencies, offices, factories, workshops, facilities, mines, quarries or any place of exploration, extraction or exploitation of natural resources.

By way of derogation from the foregoing paragraph, where a resident abroad acts in the country through a natural or moral person, other than an independent agent, the resident shall be deemed to be resident. abroad has a permanent establishment in the country, in relation to all the activities that such natural or moral person carries out for the resident abroad, even if he does not have a place of business in national territory or for the provision of services, if such person exercises powers to conclude contracts in the name or on behalf of the resident abroad who have been involved in carrying out their activities in the country, other than those mentioned in Article 3 of this Law.

In case a resident abroad carries out business activities in the country, through a trust, it will be considered as a place of business of the resident, the place where the trust carry out such activities and comply with the tax obligations arising from these activities on behalf of the resident abroad.

A permanent establishment of a foreign-resident insurance undertaking shall be deemed to exist where it receives income from the collection of premiums within the national territory or grants insurance against risks situated in the, by means of a person other than an independent agent, except in the case of reinsurance.

In the same way, a resident abroad will be considered to have a permanent establishment in the country, when he acts in the national territory through a physical or moral person who is an agent. independent, if it does not act in the ordinary framework of its activity. For these purposes, it is considered that an independent agent does not act in the ordinary framework of its activities when it is located in any of the following cases:

I.           Have stocks of goods or goods, with which you make deliveries on behalf of the resident abroad.

II.          Take risks from the resident abroad.

III.         Act subject to detailed instructions or general control of the resident abroad.

IV.         Pursue activities that are economically relevant to the resident abroad and not to their own activities.

V.          Perceive your remuneration regardless of the outcome of your activities.

VI.         Perform operations with the resident abroad using prices or amounts of consideration other than those that would have used unrelated items in comparable operations.

Dealing with construction services, demolition, installation, maintenance or assembly in real estate, or by screening, inspection or supervision activities related to them, consider that there is a permanent establishment only where they have a duration of more than 183 calendar days, whether consecutive or not, in a period of 12 months.

For the purposes of the preceding paragraph, when the resident abroad subcontracts with other companies the services related to construction of works, demolition, installations, maintenance or assemblies in real estate, or by activities of screening, inspection or supervision related to them, the days used by subcontractors in the development of such activities shall be added, where appropriate, to the calculation of the time limit referred to.

They will be considered income attributable to a permanent establishment in the country, those from the business activity that I develop or the income from fees and, in general, from the provision of a independent personal service, as well as those resulting from the disposal of goods or immovable property on national territory, carried out by the person's central office, by another establishment of the person or directly by the resident in the foreign, as the case may be. Tax in the terms of Titles II or IV of this Law shall be payable on such income, as appropriate.

It is also considered income attributable to a permanent establishment in the country, those obtained by the head office of the company or any of its establishments abroad, in the proportion in that the permanent establishment has taken part in the expenditures incurred for obtaining it.

Article 3. This is not considered to constitute permanent establishment:

I.           The use or maintenance of facilities for the sole purpose of storing or displaying goods or goods belonging to the resident abroad.

II.          The preservation of stocks of goods or goods belonging to the resident abroad for the sole purpose of storing or displaying such goods or goods or of being processed by another person.

III.         The use of a place of business for the sole purpose of buying goods or goods for the resident abroad.

IV.         The use of a place of business for the sole purpose of carrying out activities of a prior or auxiliary nature for the activities of the resident abroad, be they propaganda, information supply, research scientific, preparation for the placement of loans, or other similar activities.

V.          The tax warehouse of goods or goods of a resident abroad in a general warehouse of deposit or the delivery of the same for importation into the country.

Article 4. The benefits of the treaties to avoid double taxation will only apply to taxpayers who credit residents in the country concerned and comply with the provisions of the Treaty itself and of the other procedural provisions contained in this Law, including the provision of the information declaration on its fiscal position in the terms of Article 32-H of the Fiscal Code of the Federation or (a) to present the opinion of the financial statements when the option has been exercised referred to in Article 32-A of the Code, and to appoint a legal representative.

In addition to the provisions of the preceding paragraph, in the case of transactions between related parties, tax authorities may apply to the foreign-resident taxpayer to credit the existence of the of double legal taxation, through a demonstration under protest of the truth signed by its legal representative, in which it expressly points out that the income subject to taxation in Mexico and in respect of which it is intended to be applied the benefits of the treaty to avoid double taxation, also they are taxed in their country of residence, for which they must indicate the applicable legal provisions, as well as the documentation which the taxpayer deems necessary for such purposes.

In cases where the treaties to avoid double taxation establish retention rates lower than those indicated in this Law, the rates established in those treaties may be applied directly by the retainer; in the event that the retainer applies rates greater than those indicated in the treaties, the resident abroad shall be entitled to request the refund for the difference that corresponds to it.

The constances issued by the foreign authorities to credit the residence will have effects without the need for legalization, and it will only be necessary to display authorized translation when the authorities This is required.

Article 5. Residents in Mexico will be able to credit, against the tax that under this Law they will pay, the income tax that they have paid abroad for the income from a source located abroad, provided that it is income for which the payment of the tax is required in the terms of this Law. The accrediting referred to in this paragraph shall only proceed as long as the accumulated, perceived or accrued income includes the income tax paid abroad.

Dealing with income from dividends or profits distributed by foreign-resident companies to moral persons resident in Mexico, the proportional amount of the income tax paid by those companies corresponding to the dividend or utility perceived by the resident in Mexico. The person who carries out the credit referred to in this paragraph shall consider as a cumulative income, in addition to the dividend or income received, without diminishing the withholding or payment of the income tax that has been effected by his or her distribution, the proportional amount of the corporate income tax paid by the company, corresponding to the dividend or utility perceived by the resident in Mexico, even if the credit of the proportional amount of the tax is limited in terms of the seventh paragraph of this article. The accrediting referred to in this paragraph shall only proceed when the moral person resident in Mexico owns at least ten percent of the social capital of the resident company abroad, at least during the six months. prior to the date on which the dividend or utility concerned is paid.

For the purposes of the preceding paragraph, the proportional amount of income tax paid abroad by the resident company in another country corresponding to the dividend or utility received by the Moral person resident in Mexico, will be obtained by applying the following formula:

Where:

MPI: Proportional Amount of Income Tax Paid Abroad by Overseas Resident Company on a Corporate First Level that distributes dividends or earnings from direct way to the moral person residing in Mexico.

D: Dividend or utility distributed by the resident company abroad to the resident moral person in Mexico without diminishing the withholding or payment of the income tax that where applicable has been effected by its distribution.

U: Utility that served as the basis for distributing dividends, after payment of the corporate first-level income tax, obtained by the resident company in the foreign that distributes dividends to the resident moral person in Mexico.

IC: Corporate income tax paid abroad by foreign-resident society that distributed dividends to the resident moral person in Mexico.

In addition to the foregoing paragraphs, the proportional amount of the income tax paid by the foreign-resident company that distributes dividends to the company may be credited. another company resident abroad, if the latter, in turn, distributes such dividends to the resident moral person in Mexico. Whoever carries out the accrediting according to this paragraph, must consider as a cumulative income, in addition to the dividend or utility received directly by the resident moral person in Mexico, without diminishing the withholding or payment of the tax on the income that has been effected by its distribution, the proportional amount of the corporate income tax corresponding to the dividend or income received in indirect form by which the credit is to be made, even if the credit of the proportional amount of the tax is limited in terms of the paragraph seventh of this article. This proportional amount of income tax paid at a second corporate level will be determined in accordance with the following formula:

Where:

MPI2:   Proportional amount of income tax paid abroad by the foreign-resident company in the second corporate level, which distributes dividends or profits to the other foreign company at the corporate level, which to its time distributes dividends or profits to the resident moral person in Mexico.

D: Dividend or utility distributed by the resident company abroad to the resident moral person in Mexico without diminishing the withholding or payment of the income tax that where applicable has been effected by its distribution.

U: Utility that served as the basis for distributing dividends, after payment of the corporate first-level income tax, obtained by the resident company in the foreign that distributes dividends to the resident moral person in Mexico.

D2:     Dividend or utility distributed by the resident company abroad to the resident company abroad that distributes dividends to the resident moral person in Mexico, without diminishing the withholding or payment of the income tax that If applicable, it was made by the first distribution.

U2:     Utility which served as the basis for the distribution of dividends after the payment of income tax at the second corporate level, obtained by the foreign-resident company that distributes dividends to the other resident company in the foreign that distributes dividends to the resident moral person in Mexico.

IC2: Corporate income tax paid abroad by the foreign resident company that distributed dividends to the other resident company in the foreign that distributes dividends to the resident moral person in Mexico.

The accrediting referred to in the preceding paragraph shall only proceed provided that the resident company abroad which has paid the income tax to be credited is in a second corporate level. To carry out this credit, the moral person resident in Mexico must have a direct participation in the social capital of the resident company abroad, which distributes dividends of at least ten percent. This last company must own at least ten percent of the social capital of the foreign-resident society in which the resident in Mexico has indirect participation, and this should be the last participation of less than five percent of its share capital. The share holdings referred to in this paragraph shall have been maintained for at least the six months preceding the date on which the dividend or utility concerned is paid. Additionally, to carry out the credit referred to in the previous paragraph, the foreign-resident society in which the moral person residing in Mexico has indirect participation must be resident in a country with which Mexico has a comprehensive information exchange agreement.

Dealing with moral persons, the amount of the accreditable tax referred to in the first paragraph of this article shall not exceed the amount resulting from the application of the fee referred to in Article 9 of this Article. this Law, to the tax utility that results in accordance with the applicable provisions of this Law for the income received in the exercise of source of wealth located abroad. For these purposes, deductions that are solely attributable to foreign-located wealth source income will be considered to be one hundred percent; deductions that are solely attributable to source income of wealth located in national territory should not be considered and, deductions that are partially attributable to income from source of wealth in national territory and partially to income from source of wealth abroad, will be considered in the same proportion as the income from abroad that it is treat, in respect of the total income of the taxpayer in the financial year. The calculation of the credit limit referred to in this paragraph shall be calculated for each country or territory concerned.

Additionally, in the case of moral persons, the sum of the proportional amounts of the taxes paid abroad that is entitled to credit according to the second and fourth paragraphs of this Article shall not exceed the credit limit. The credit limit shall be determined by applying the following formula:

Where:

LA: Credit limit for corporate income taxes paid abroad at first and second corporate level.

D: Dividend or utility distributed by the resident company abroad to the resident moral person in Mexico without diminishing the withholding or payment of the tax on the income that has been effected by its distribution.

MPI: Proportional Monto Of Corporate Income Tax Paid Abroad referred to in the third paragraph of this article.

MPI2:   Proportional amount of corporate income tax paid abroad referred to in the fourth paragraph of this article.

T: Rate referred to in Article 9 of this Act.

ID: Accreditable tax referred to in the first and sixth paragraphs of this article corresponding to the dividend or utility perceived by the resident moral person in Mexico.

When the moral person who in the terms of the preceding paragraphs is entitled to credit the income tax paid abroad is spun off, the right to credit will correspond to him. exclusively to the company being divided. Where the latter disappears, it may be transmitted to the companies divided in the proportion in which the share capital is divided into the division.

In the case of natural persons, the amount of the accreditable tax referred to in the first paragraph of this article shall not exceed the amount resulting from the application of the provisions of Chapter XI of the Title IV of this Law to the income received in the exercise of source of wealth located abroad, once the deductions authorized for such income are made in accordance with the corresponding chapter of Title IV. For these purposes, deductions that are not exclusively attributable to the income of source of wealth located abroad shall be considered in the ratio above.

In the case of natural persons who determine the tax corresponding to their income from business activities in the terms of Chapter II of Title IV of this Law, the amount of the tax accreditable referred to in the first paragraph of this article shall not exceed the amount resulting from the application to the total of the foreign income of the tariff set out in Article 152 of this Law. For these purposes, deductions that are not exclusively attributable to the income of source of wealth located abroad shall be considered in the aforementioned proportion. For the purposes of this paragraph and the preceding paragraph, the calculation of the credit limits shall be carried out for each country or territory concerned.

Natural persons residing in Mexico who are subject to the payment of the tax abroad under their nationality or citizenship, may carry out the accreditation referred to in this Article until for an amount equivalent to the tax that they would have paid abroad if they did not have such a condition.

When the accreditable tax is within the limits referred to in the preceding paragraphs and cannot be fully or partially credited, the accrediting may be made in the ten exercises, until exhausted. For the purposes of this accreditation, the provisions on losses of Chapter V of Title II of this Law shall apply.

The portion of the tax paid abroad that is not creditable in accordance with this article, shall not be deductible for the purposes of this Law.

To determine the amount of tax paid abroad that can be credited in the terms of the second and fourth paragraphs of this article, the respective currency conversion shall be effected, Considering the last exchange rate published in the Official Journal of the Federation, prior to the last day of the financial year to which the utility is responsible for the payment of the dividend or utility received by the resident in Mexico. In the other cases referred to in this Article, for the purposes of determining the amount of the tax paid abroad that can be credited, the exchange rate conversion shall be carried out on the basis of the monthly average of the daily exchange rates. published in the Official Journal of the Federation in the calendar month in which the tax is paid abroad by means of retention or whole.

Taxpayers who have paid income tax abroad in an amount that exceeds that provided for in the Treaty to avoid double taxation that, if applicable, is applicable to the income of in question, they may only prove the surplus in the terms of this article after the dispute settlement procedure contained in that same treaty has been exhausted.

You will not be entitled to the credit of the tax paid abroad, when your withholding or payment is conditional on your credit in the terms of this Law.

Taxpayers will have to have proof of payment of the tax in all cases. In the case of taxes withheld in countries with which Mexico has extensive information exchange agreements, a record of retention shall be sufficient.

Moral persons resident in Mexico who earn income from dividends or profits distributed by foreign-resident companies shall calculate the proportional amounts of the taxes and the limit referred to in the seventh paragraph of this Article for each fiscal year from which the distributed dividends come. For the purposes of the foregoing, the moral persons resident in Mexico shall be required to keep a record that permits the identification of the financial year to which the dividends or profits distributed by the resident company abroad correspond. In the event that the moral person resident in Mexico does not have elements to identify the fiscal year to which the dividends or distributed profits correspond, in the register referred to in this paragraph, the first The profits generated by the company are the first to be distributed. The taxpayer shall maintain all documentation that checks the information indicated in the register referred to in this paragraph. Residents in Mexico who do not maintain the above registration or documentation, or who do not carry out the calculation in the manner indicated above, shall not be entitled to credit the tax referred to in the second and fourth paragraphs of this Article. Article. The record referred to in this paragraph shall be taken from the acquisition of the holding holdings, but shall contain the information relating to the profits for which dividends or profits are distributed, even if they correspond to previous exercises.

When a resident abroad has a permanent establishment in Mexico and is attributable to that establishment income from a source located abroad, the credit can be made in the terms set out in this Article, only for those attributable income that has been subject to retention.

A tax paid abroad will be considered to have the nature of an income tax when it complies with the general rules issued by the Administration Service. Tax. A tax paid abroad will be considered to have a tax on income tax when it is expressly stated as a tax in a treaty to avoid the double taxation in force for which Mexico is part.

Article 6. When this Law prevents the adjustment or updating of the values of goods or transactions, which over the course of time and on the occasion of the price changes in the country have varied, will be the following:

I.           To calculate the change in the value of the goods or transactions, in a period, the adjustment factor corresponding to the following shall be used:

a) When the period is one month, the monthly adjustment factor that will be obtained by subtracting the unit from the ratio that results from dividing the Index will be used. National Consumer Price for the month in question, between the above mentioned index of the previous month.

b) When the period is greater than one month, the adjustment factor that will be obtained by subtracting the unit from the ratio that results from dividing the National Index will be used. For the most recent month of the period, between the index corresponding to the oldest month of that period.

II.          To determine the value of a good or an operation at the end of a period, the update factor that will be obtained by dividing the National Consumer Price Index from the most recent month of the period will be used. index corresponding to the oldest month of that period.

Article 7. When in this Law, mention is made of the moral person, understood, among others, the mercantile societies, the decentralized agencies that carry out preponderantly business activities, credit institutions, civil societies and associations, and the partnership in participation when business activities are carried out in Mexico.

In cases where reference is made to shares, it shall be understood as including the certificates of capital contribution issued by the national credit companies, the social partners, shares in civil partnerships and ordinary certificates of participation issued on the basis of trusts on shares which are authorised in accordance with applicable foreign investment law. Where reference is made to shareholders, the holders of the certificates referred to in this paragraph, the social partners and the participating interests shall be included. In the case of companies whose capital is represented by social parties, where reference is made in this Law to the proven cost of acquiring shares, the aliquot part of the social partners in the capital must be considered. the social part of the company concerned.

The financial system, for the purposes of this Law, is made up of the Bank of Mexico, credit institutions, insurance institutions and bonds, companies controlling financial groups, general warehouse warehouses, retirement fund managers, financial lessor, credit unions, popular financial corporations, variable income investment companies, investment companies in debt instruments, financial factoring companies, exchange houses, exchange houses and companies limited-object financial services, which are resident in Mexico or abroad. Members of the financial system shall be considered to be members of the multiple-object financial corporations referred to in the General Law of Credit Organizations and Activities of Credit that have accounts and documents receivable from the financial institutions. activities which must constitute their principal social object, in accordance with the provisions of that Law, which represent at least 70% of their total assets, or which have income derived from such activities and from disposal or administration of the appropriations granted by them, representing at least 70% of the percent of their total income. For the purposes of determining the percentage of seventy per cent, the assets or income deriving from the disposal of the goods or services of the companies themselves, of the securities to be carried out at the expense of the company, shall not be considered to credit cards or financing granted by third parties.

Dealing with newly created multiple-object societies, the Tax Administration Service through particular resolution in which the compliance program is considered The taxpayer may establish for the first three financial years of these companies a percentage less than that indicated in the preceding paragraph, to be considered as members of the financial system for the purposes of this Law.

For the purposes of this law, it is considered social security to be carried out to meet contingencies or needs present or future, as well as to provide benefits in favour of workers or members or members of cooperative societies, with a view to overcoming them physically, socially, economically or culturally, which will enable them to improve their quality of life and that of their family. In no case shall social provision be deemed to be for the purposes of persons who do not have the status of workers or members or members of cooperative societies.

For the purposes of this Law, securities depositaries are considered to be the credit institutions, the companies operating companies of investment, the distribution companies of shares of investment companies, stock houses and institutions for the deposit of securities of the country granted by the Federal Government in accordance with the provisions of the Law on the Market of Securities, which provide the service of custody and administration of titles.

Article 8. For the purposes of this Law, interest, whatever the name with which they are designated, are considered to be interest income of any class. It is understood that, among others, it is interest: the returns on public debt, bonds or bonds, including discounts, premiums and prizes; the awards of reporters or securities loans; the amount of the commissions that correspond to reason for opening or guaranteeing claims; the amount of consideration for the acceptance of an endorsement, the granting of a guarantee or the liability of any kind, except where such consideration must be made to insurance institutions or bonds; the gain in the disposal of bonds, securities and other titles of credit, provided that they are among those placed among the large investor public, in accordance with the general rules that the Tax Administration Service may issue.

In the financial factoring operations, interest shall be considered to be the gain derived from the credit rights acquired by financial factoring companies and financial corporations. multiple object.

In finance lease contracts, the difference between total payments and the original amount of the investment is considered to be of interest.

The assignment of rights to the income to grant the use or temporary enjoyment of real estate will be considered as a financing operation; the amount to be obtained by the cession treat as a loan, the income earned under the contract must be accumulated, even if the income is collected by the acquirer of the rights. The consideration paid by the cession will be treated as credit or debt, as the case may be, and the difference with the income will have the treatment of interest. The amount of the credit or debt shall generate the annual adjustment for inflation in the terms of Chapter III of Title II of this Law, which shall be cumulative or deductible, as the case may be, considering for its quantification, the discount rate taken for the transfer of the right, the total of the income covered by the cession, the value to be paid for such income and the period that would have been determined in the contract, in the terms laid down in the Regulation of this Law.

When loans, debts, operations or the amount of payments for leasing contracts are adjusted by the application of indices, factors or any other form, including through the use of investment units, the adjustment shall be considered as part of the interest.

The treatment that this Law establishes for interest, earnings or exchange losses, due to the fluctuation of foreign currency, including the corresponding ones, will be given. to the principal and self-interest. The exchange rate loss may not exceed that which would be considered to be the exchange rate for debt securities denominated in foreign currency payable in the Mexican Republic established by the Bank of Mexico, which will be published in the Official Journal of the Federation, corresponding to the day the loss is suffered.

The treatment set out in this Law will be given for the interest, the gain coming from the disposal of the shares of the investment companies in debt instruments to which refers to the Investment Companies Act.

TITLE II

MORAL PEOPLE

GENERAL PROVISIONS

Article 9. Moral persons shall calculate income tax, applying to the tax result obtained in the exercise the rate of 30%.

The fiscal result of the exercise will be determined as follows:

I.           The tax utility will be obtained by decreasing all the cumulative income earned in the year, the deductions authorized by this Title and the participation of the workers in the profits of the companies paid in the exercise, in the terms of Article 123 of the Political Constitution of the United Mexican States.

II.          The fiscal utility of the financial year shall be reduced, where appropriate, to the outstanding tax losses from previous financial years.

The tax on the financial year shall be paid by declaration to the authorised offices within three months of the end of the financial year.

In order to determine the taxable income referred to in Article 123 (A) (e) of the Political Constitution of the United Mexican States, the participation of the workers in the profits of the companies paid in the financial year and the tax losses to be applied from previous years.

For the determination of the taxable income in terms of employee participation in the profits of the companies, the taxpayers will have to reduce the cumulative income the amounts that are not have been deductible in the terms of the XXX fraction of Article 28 of this Law.

Article 10. The moral persons who distribute dividends or profits shall calculate and find out the tax corresponding to them, applying the rate set out in Article 9 of this Law. For these purposes, the dividends or distributed profits will be added with the income tax to be paid in the terms of this article. In order to determine the tax to be added to the dividends or profits, these must be multiplied by the factor of 1.4286 and the result will be applied to the rate established in the aforementioned article 9 of this Law. The tax corresponding to the distributed utilities referred to in Article 78 of this Law shall be calculated in the terms of that provision.

Dealing with the distribution of dividends or profits through the increase of social parts or the delivery of shares of the same moral person or when reinvested in the subscription and payment of the increase capital of the same person within 30 calendar days of distribution, the dividend or utility shall be understood to be perceived in the calendar year in which the repayment is paid for the reduction of capital or for the settlement of the person moral in question, in the terms of Article 78 of this Law.

You will not be required to pay the tax referred to in this article when dividends or profits come from the net tax income account established by this Act.

The tax referred to in this article, will be paid in addition to the tax of the financial year referred to in Article 9 of this Law, will have the character of definitive payment and will be entered before the offices authorised, no later than the 17th day of the immediate month following that in which the dividends or profits were paid.

When the taxpayers referred to in this article distribute dividends or profits and as a result pay the tax set out in this article, they may credit such tax according to the following:

I.           The accrediting may only be made against the income tax of the financial year resulting from the moral person in the financial year in which the tax referred to in this article is paid.

The amount of the tax that cannot be credited according to the previous paragraph, can be credited for up to the following two immediate exercises against the tax for the financial year and against provisional payments. Where the tax on the financial year is less than the amount which has been credited in the interim payments, only the amount equal to the tax on the financial year shall be deemed to be accreditable.

Where the taxpayer fails to accredit the tax referred to in the fourth paragraph of this Article in an exercise, and may have done so in accordance with it, will lose the right to do so in subsequent exercises up to the amount in which it could have done so.

II.          For the purposes of Article 77 of this Law, in the year in which the tax is credited in accordance with the previous fraction, the taxpayers shall reduce the net tax income calculated in the terms of that provision, the amount resulting from dividing the tax credited between factor 0.4286.

For the purposes of this article, it will not be considered dividends or distributed profits, the participation of workers in the profits of companies.

The moral persons who distribute the dividends or profits referred to in Article 140 fractions I and II of this Law shall calculate the tax on such dividends or profits by applying (a) the rate laid down in Article 9 of this Law. This tax shall be of a definitive nature.

Article 11. Dealing with interest arising from credits granted to moral persons or permanent establishments in the country of foreign residents, by persons residing in Mexico or abroad, which are related parts of the a person who pays the credit, the taxpayers shall consider, for the purposes of this Act, that the interest derived from such claims shall be treated as dividends when any of the following assumptions are updated:

I. The debtor makes written unconditional promise of partial or full payment of the received credit to a date that is determinable at any time by the debtor. creditor.

II. Interest is not deductible in accordance with Article 27 (XIII) of this Law.

III. In the event of default by the debtor, the creditor has the right to intervene in the direction or administration of the debtor company.

IV. The interest payable by the debtor is conditional upon the profit being obtained or the amount is fixed based on those utilities.

V. Interest is derived from supported credits, including when granted through a country or country-based financial institution. foreign.

For the purposes of this fraction, credit is considered to be supported by transactions by means of which a person provides cash, goods or services to another person, who in turn provides them with directly or indirectly, cash, goods or services to the person mentioned in the first place or to a related party. Also considered are loans backed by those transactions in which a person grants a financing and the credit is guaranteed by cash, cash deposit, shares or debt instruments of any kind, of a part or the same accredited, to the extent that it is guaranteed in this way. For these purposes, it is considered that the credit is also guaranteed in the terms of this fraction, when its grant is conditional upon the conclusion of one or more contracts that grant an option right in favour of the accrediting or a the related party, the exercise of which depends on the partial or total non-compliance with the credit or its accessories by the accredited person.

They will have the treatment of loans backed by this fraction, the set of financial transactions arising from debt or those referred to in Article 21 of this Law, held by two or more parties related to the same financial intermediary, where the transactions of one of the parties give rise to the other parties, with the primary purpose of transferring a defined amount of resources from one related party to the other. They will also have this treatment, the discount operations of debt securities that are settled in cash or in goods, which in any form are located in the assumptions provided for in the preceding paragraph.

Not to be considered as supported loans, transactions in which a person is granted financing and credit is guaranteed by shares or debt instruments of any kind, owned by the accredited or related parties of the latter who are resident in Mexico, where the accrediting cannot legally dispose of those, except in the case where the accredited person fails to comply with any of the obligations agreed in the contract of respective credit.

Article 12. Within the month following the end of the settlement of a company, the liquidator shall submit the final statement of the settlement exercise. The liquidator shall submit monthly interim payments on account of the tax on the clearance exercise, no later than the 17th of the immediate month after the date on which the payment corresponds, in accordance with Article 14 of this Law, the total settlement of the asset is carried out. Such provisional payments shall not be regarded as the assets of establishments located abroad. At the end of each calendar year, the liquidator shall submit a declaration by 17 January of the following year at the latest, where he shall determine and enter the tax corresponding to the period from the beginning of the calendar year. settlement and until the last month of the year in question and credit the provisional and annual payments previously made for the period referred to above. The last statement shall be that of the settlement exercise, shall include the assets of the establishments located abroad and shall be filed not later than the month following that in which the settlement ends, even if they do not twelve months since the last statement.

For the purposes of this Law, a moral person residing in Mexico shall be deemed to be liquid, when he ceases to be resident in Mexico in the terms of the Fiscal Code of the Federation or in accordance with the provisions of a treaty to avoid double taxation in force concluded by Mexico. For these purposes, all assets that the moral person has in Mexico and abroad and as a value of the same, the market to the date of the change of residence, shall be considered to be in use; when this value is not known, the the person authorised by the tax authorities for such purposes is carried out by the tax authorities. The tax to be determined must be entered within 15 days of the change in the tax residence.

For the purposes of the preceding paragraph, a legal representative shall be appointed to meet the requirements laid down in Article 174 of this Law. Such representative shall keep at the disposal of the tax authorities the evidence relating to the payment of the tax on behalf of the taxpayer, within the time limit laid down in the Tax Code of the Federation, from the day following the day on which the declaration was lodged.

The legal representative named in the terms of this article will be responsible for the contributions to be paid by the resident moral person in Mexico who is liquidated.

Article 13. When business activities are carried out through a trust, the trustee will determine in the terms of Title II of this Law, the result or tax loss of such activities in each financial year and shall comply with the total of the trustees the obligations set out in this Law, including the obligation to make interim payments.

The trustee must issue to the trustees or to the trustees, where appropriate, the tax proof in which the income and deductions derived from the business activities made through the trust in question.

The trustees will accumulate their other income from the financial year, the part of the tax result of that financial year derived from the business activities carried out through the trust the amount of the provisional payments made by the trustee, in accordance with the terms of the trust agreement and in that proportion. The tax loss arising from the business activities carried out through the trust can only be diminished from the tax profits of subsequent years arising from the activities carried out through that same trust in the terms of Chapter V of Title II of this Law.

When there are outstanding tax losses to be decreased upon the termination of the trust, the updated balance of such losses will be distributed among the trustees in the ratio that corresponds to the agreement of the trust contract and may deduct it in the year in which the trust is extinguished up to the updated amount of its contributions to the trust that does not recover each of the trustees in the individual.

For the purposes of the preceding paragraph, the trustee shall have a capital account for each of the trustees, in accordance with the provisions of Article 78 of the this Act, in which cash and property contributions are recorded to the trust each of them.

Cash or property deliveries from the trust that the trustee will make to the trustees will be considered capital repayments provided until such capital is recovered and decrease the balance of each of the individual capital accounts held by the trustee for each of the trustees until the balance of each of those accounts is exhausted.

For the purposes of determining the utility or tax loss of the financial year arising from the business activities carried out through the trust, the deductions shall include the which corresponds to the assets contributed to the trust by the trustee when it is in turn a trustee and does not receive any cash or other goods for them, considering as cost of acquisition of the same the original amount of the updated investment not yet deducted or the average cost per share, according to the good in question, which has the right to be transferred to the trust and the same cost of acquisition must be recorded in the trust's accounts and in the capital account of the corresponding contribution. The person who provides the goods referred to in this paragraph may not deduct such goods in the determination of their profits or tax losses arising from their other activities.

When the assets contributed to the trust referred to in the preceding paragraph are returned to the members who contributed them, they shall be deemed to be reintegrated into the tax value they have in the the trust's accounting at the time they are returned and in that same value they will be considered to be acquired by the persons who contributed them.

Provisional income tax payments corresponding to the business activities carried out through the trust shall be calculated in accordance with the provisions of Article 14 of this Law. In the first calendar year of operations of the trust or where it is not a utility coefficient in accordance with the above, it shall be considered as a utility coefficient for the purposes of the provisional payments, whichever is the same in terms of the Article 58 of the Fiscal Code of the Federation, to the preponderant activity carried out by the trust. For such purposes, the trustee will present a statement for its own activities and another for each of the trusts.

When any of the trustees is a physical person resident in Mexico, they will consider as income from business activities the part of the result or the tax utility derived from the activities the business performed through the trust that corresponds to him according to the agreement of the contract.

It is considered that the foreign residents who are trustees have permanent establishment in Mexico for the business activities carried out in the country through the trust and must submit their annual income tax return on the part of the income tax or the tax utility of the financial year arising from those activities.

In cases where no trustees have been designated or cannot be identified, it will be understood that the business activities carried out through the trust are carried out by the trustee.

The trustees or, where appropriate, the trustee, will respond to the breach of the obligations that the trustee must fulfill.

Article 14. Taxpayers shall make monthly interim payments on account of the tax of the financial year, at the latest on the 17th day of the immediate month after the month to which the payment corresponds, as to the following bases:

I.           The utility coefficient shall be calculated for the last 12-month financial year for which a statement was or should have been made. For this purpose, the tax utility of the year in which the coefficient is calculated shall be divided between the nominal income of the same financial year.

The moral persons who distribute advances or yields in the terms of Article 94 (II) of this Law shall add to the tax utility or reduce the tax loss, as appropriate, the amount of the advances and yields which, if any, would have been distributed to its members in the terms of the aforementioned fraction, in the exercise by which the coefficient is calculated.

For the second fiscal year, the first interim payment shall comprise the first, second and third months of the financial year, and shall be deemed to be the the fiscal utility of the first financial year, even if it had not been twelve months.

When in the last 12-month period it is not useful in accordance with the provisions of this fraction, the latter shall apply for the last a 12-month period for which the coefficient is to be applied, without the previous year being more than five years before the year in which the provisional payments are to be made.

II.          The tax utility for the provisional payment shall be determined by multiplying the appropriate value coefficient according to the previous fraction, by the nominal income corresponding to the period from the beginning of the exercise and up to the last day of the month to which the payment relates.

The moral persons who distribute advances or yields in the terms of section II of Article 94 of this Law will decrease the tax utility for the provisional payment made in accordance with the preceding subparagraph, with the amount of advances and yields which they distribute to their members in the terms of the fraction referred to above, in the period from the beginning of the financial year; until the last day of the month to which the payment relates. Proof of the amount of the advances and yields distributed, as well as the tax withheld, shall be issued.

The tax utility determined in accordance with this fraction shall be reduced, where appropriate, from the tax loss of previous financial years to be applied against the tax profits, without prejudice to the reduction of such loss of the fiscal utility of the financial year.

III.         The provisional payments shall be the amounts resulting from the application of the levy provided for in Article 9 of this Law, on the tax utility to be determined in the terms of the preceding fraction, which may be credited against the imposed on the payment of provisional payments for the same financial year. Such provisional payments may also be credited against the withholding tax that would have been made to the taxpayer in the period, in accordance with Article 54 of this Law.

In order to calculate the corresponding monthly interim payments, the settlement exercise shall be considered as a utility coefficient for the purposes of such provisional payments as it corresponds to the last statement that at the end of each calendar year the liquidator had submitted or should have submitted in the terms of Article 12 of this Law or the one corresponding in accordance with the provisions of the last paragraph of Section I of this article.

The nominal income referred to in this Article shall be the cumulative income, except the annual adjustment for cumulative inflation. In the case of loans or transactions denominated in investment units, nominal income shall be considered for the purposes of this Article, as the interest shall be payable, including the adjustment corresponding to the principal for the purposes of the credits or operations called on those units.

Taxpayers who initiate transactions on the occasion of a merger of companies in which a new company arises shall, in that financial year, make provisional payments from the month in which the merger takes place. For the purposes of the above, the utility coefficient referred to in the first paragraph of section I of this Article shall be calculated by taking into account the profits or tax losses and the income of the companies which are merge. Where the merging companies are in the first operating year, the coefficient shall be calculated using the concepts indicated for that financial year. Where it is not a coefficient in the terms of this paragraph, the provisions of the last paragraph of section I of this article shall apply, as stated in this paragraph.

Taxpayers who initiate transactions on the basis of the division of companies shall make provisional payments from the month in which the division takes place, whereas for that year the coefficient of utility of the company being divided into the same. The coefficient referred to in this paragraph shall also be used for the purposes of the last paragraph of Part I of this Article. The company shall consider as interim payments effectively entered before the division, all such payments which it would have made in the financial year in which the division took place and may not be allocated to the companies. split, even if the breakaway company disappears.

Taxpayers will be required to file interim payment statements as long as they have tax payable, balance in favor or in the case of the first declaration in which they have no tax. They shall not be required to make interim payment declarations in the course of the commencement of operations, when they have issued the notice of suspension of activities which prevents the Federation's Fiscal Code Regulation or in cases where has not imposed a charge or balance in favour and is not the first declaration with this characteristic.

Taxpayers, to determine the interim payments referred to in this Article, shall be as follows:

(a) No income from a source of wealth located abroad that has been the subject of income tax withholding shall be considered the income attributable to its establishments located abroad that are subject to the payment of income tax in the country where these establishments are located.

b) Taxpayers who estimate that the utility coefficient to be applied to determine interim payments is higher than the The usefulness of the financial year to which these payments correspond, may, from the second half of the year, apply for authorization to reduce the amount of the corresponding payments. Where the authorisation to lower the provisional payments is due to the fact that they would have been covered in less than the same amount as in the terms of this Article of having taken the data relating to the The usefulness of the declaration of the financial year in which the payment was reduced shall be covered by the difference between the authorised payments and those which would have been paid to them.

Article 15. Taxpayers subject to a commercial tender procedure may decrease the amount of the debts forgiven under the agreement with their creditors. recognised, in the terms laid down in the Law on Commercial Concourses, of the outstanding losses they have in the financial year in which they are forgiven by those creditors. Where the amount of the debt forgiven is greater than the outstanding tax losses, the resulting difference shall not be considered as a cumulative income unless the debt forgiven comes from transactions between and with parties. related to what is referred to in Article 179 of this Law.

CHAPTER I

OF REVENUE

Article 16. The moral persons resident in the country, including the joint association, shall accumulate all cash income, in goods, in service, in credit or of any other type, which they obtain in the financial year, including those from their establishments abroad. The annual adjustment for cumulative inflation is the income that taxpayers get from the actual decrease in their debts.

For the purposes of this Title, it is not considered income to be obtained by the taxpayer by capital increase, by payment of the loss by its shareholders, by premiums obtained by the placement of shares issued by the company itself or to be used to value its shares for the equity method or for the shares they obtain on the basis of the revaluation of their assets and capital.

moral persons residing abroad, as well as any entity deemed to be a moral person for tax purposes in their country, having one or more establishments permanent in the country, will accumulate all the income attributable to them. The simple consignment of the head office of the moral person or another establishment of the establishment shall not be deemed to be attributable to a permanent establishment.

They will not be cumulative for the taxpayers of this Title, the income from dividends or profits they perceive from other moral persons resident in Mexico.

Article 17. For the purposes of Article 16 of this Law, revenue is deemed to be obtained, in those cases not provided for in other articles thereof, on the dates that are they point to the following treatment of:

I.           Disposal of goods or services, when any of the following assumptions are made, whichever occurs first:

a) The tax voucher that will cover the price or the agreed consideration is issued.

b) Either send or deliver materially the good or when the service is delivered.

c) All or part of the price or the agreed consideration is payable in whole or in part, even if it comes from of advances.

Dealing with income from the provision of independent personal services to obtain the civil societies or associations and revenue from the supply of drinking water for domestic use or household waste collection to be obtained by the decentralised bodies, dealers, permissioners or authorised undertakings to provide such services, it is considered that they are obtained in the time at which the price or the agreed consideration is charged.

II.          Grant of the use or temporary enjoyment of goods, when the consideration is paid in whole or in part for the consideration, or when they are payable in favor of the person making such a grant, or the tax proof that protects the price is issued or the agreed consideration, what happens first.

III.         Obtaining income from leasing contracts, taxpayers may choose to consider as income obtained in the year the total price agreed or the share of the price payable during the year.

In the case of term enajenations in the terms of the Tax Code of the Federation, the taxpayers consider how the total of the agreed price was obtained in the year.

The option referred to in the first paragraph of this fraction shall be exercised by the whole of the contracts. The option may be changed without requirements once; in the case of the second and subsequent changes, it must be at least five years after the last change; when the change is desired before the deadline is passed, it must be comply with the requirements laid down by the Regulation of this Law for that purpose.

When in terms of the first paragraph of this fraction, the taxpayer would have chosen to consider as income earned in the exercise only the part of the agreed price payable and the payment of the outstanding documents, or the documents in payment, shall consider the amount to be accumulated as income obtained in the year in which the sale or payment is made.

In the event of non-compliance with the leasing contracts, in respect of which the option to consider as income obtained has been exercised in the year only the part of the price payable, the lessor shall consider as income obtained in the year, the amounts payable on the same of the lessee, diminished by the amounts that he would have already returned under the contract respective.

In the case of leasing contracts, revenue earned in the financial year in which they are payable shall be considered as income derived from any of the options referred to in Article 15 of the Fiscal Code of the Federation.

IV.         Income arising from debts not covered by the taxpayer, in the month in which the limitation period is consumed or in the month in which the period referred to in the second paragraph of Article 27 (XV) of this Article is met. Law.

Taxpayers who enter into real estate contracts shall consider the income from such contracts to be cumulative on the date on which the estimates for the work executed are authorized or approved for recovery, provided that the payment of these estimates takes place within three months of their approval or approval; otherwise, the revenue from such contracts shall be considered as cumulative until they are actually paid. Taxpayers who conclude other contracts of work in which they are required to carry out such work in accordance with a plan, design and budget shall consider that they obtain the revenue on the date on which the estimates for the work carried out are approved or approved for recovery, provided that the payment of these estimates takes place within three months of their approval or authorization; otherwise, the revenue from such contracts shall be shall be deemed to be cumulative until they are actually paid, or in cases where they are not submit them or the periodicity of their presentation is greater than three months, they shall consider the quarterly advance in the execution or manufacture of the goods referred to in the work as a cumulative income. The cumulative income from work contracts referred to in this paragraph shall be reduced with the part of the advances, deposits, guarantees or payments for any other concept, which has previously been accumulated and which is amortised against the estimation or advancement.

The contributors referred to in the preceding paragraph shall consider cumulative income, in addition to those indicated therein, any payment received in cash, goods or services, either by concept of advances, deposits or guarantees of compliance with any obligation, or any other obligation.

Article 18. For the purposes of this Title, cumulative income is considered, in addition to those noted in other articles of this Act, the following:

I.           The income determined, including presumptively by the tax authorities, in cases where it comes under the tax laws.

II.          The profit derived from the transfer of ownership of goods by payment in kind. In this case, in order to determine the gain, the value to be entered shall be deemed to be the value which, in accordance with the guarantee provided by the person authorized by the tax authorities, has the good at which it is treated on the date on which the property is transferred by payment. in kind, being able to decrease from such income the deductions that for the case of disposal allows this Law, provided that they are met with the requirements that for it are established in the same and in the other tax provisions. In the case of goods, as well as raw materials, semi-finished or finished products, the total revenue shall be accumulated and the value of the cost of the goods sold shall be determined in accordance with Section III of Chapter II of Title II of this Act.

III.         Those that come from permanent buildings, installations or improvements in real estate, which in accordance with the contracts for which their use was granted or enjoyed are for the benefit of the owner. For these purposes, the income is considered to be obtained at the end of the contract and in the amount that the investments to that date have according to the guarantor that practice person authorized by the tax authorities.

IV.         The profit derived from the disposal of fixed assets and land, securities, shares, social parts or certificates of equity issued by national credit companies, as well as the profit realised from the the merger or division of companies and the one resulting from the reduction of capital or the liquidation of commercial companies resident abroad, in which the taxpayer is a shareholder or shareholder.

In cases of reduction of capital or liquidation, of commercial companies resident abroad, the gain shall be determined in accordance with the provisions of the in section V of Article 142 of this Law.

In cases of merger or division of companies, the profit derived from such acts shall not be considered as a cumulative income, when the requirements are met established in Article 14-B of the Tax Code of the Federation.

V.          The payments that are received for the recovery of a credit deducted by bad.

VI.         The amount that is recovered by insurance, sureties or liabilities from third parties, dealing with losses of the taxpayer's property.

VII.        The amounts paid by the taxpayer to compensate for the decrease in their productivity caused by death, accident or illness of technicians or leaders.

VIII.       The amounts to be collected for the purpose of carrying out expenditure on behalf of third parties, unless such expenditure is supported by tax vouchers in the name of the person on behalf of whom the expenditure is incurred.

IX.         The interest earned in the exercise, without any adjustment. In the case of moratorical interests, only those actually charged will be accumulated from the fourth month. For these purposes, it is considered that the income from moratoria interest that is collected after the third month following that in which the debtor incurred in arrears covers, in the first place, the moratoria interest accrued in the three months following that in which the debtor defaulted, until the amount collected exceeds the amount of accrued accrued interest accrued at the last period quoted.

For the purposes of the preceding paragraph, any moratory interest charged shall be cumulated to the extent that the actual claims exceed the amount of the moratoria accumulated in the first three months and up to the amount they exceed.

X.          The annual adjustment for inflation that is cumulative in the terms of Article 44 of this Law.

XI.         The amounts received in cash, in national or foreign currency, by way of loans, contributions for future capital increases or increases in capital greater than $600,000.00, where the provisions of Article 76 are not met, Section XVI of this Law.

Dealing with interest accrued by residents of Mexico or residents abroad with permanent establishment in the country in favor of foreign residents whose rights are transmitted to a foreign resident. resident in Mexico or a resident abroad with permanent establishment in the country, will be considered as cumulative income when they receive such rights, except in the case where it is shown that the residents abroad paid the tax referred to in Article 166 of this Law.

Article 19. To determine the gain by the disposal of land, of securities representing the property of goods, except for goods, as well as for raw materials, semi-finished or finished products, as well as other securities whose income is not considered to be interest in the terms of Article 8 of this Law, of pieces of gold or silver that have been of a national or foreign currency and of the pieces denominated troy, the taxpayers subtract from the income obtained by its disposal the original amount of the investment, which is may be adjusted by multiplying it by the updating factor corresponding to the period from the month in which the acquisition was made and until the immediate month preceding the month in which the disposal is carried out.

The adjustment referred to in the preceding paragraph is not applicable to determine the gain from the disposal of shares and certificates of deposit of goods or goods.

In the case of goods acquired on the occasion of merger or division of companies, the value of their acquisition by the merged or splinter company shall be considered as the original amount of the investment and as a date of the acquisition that would have corresponded to the latter.

Article 20. In the case of derivative financial transactions, the cumulative gain or the deductible loss shall be determined as follows:

I.           Where an operation is carried out in cash, the difference between the final amount collected or delivered as a result of the liquidation or, where applicable, of the financial year shall be considered as a gain or as a loss, as the case may be. of the rights or obligations contained in the operation, and the amounts prior to, where appropriate, paid or received in accordance with the terms of the operation or for the subsequent acquisition of the rights or the obligations contained in the same, as the case may be.

II.          Where an operation is carried out in kind with the delivery of goods, securities, securities or currency, the goods covered by the transaction shall be deemed to have been or have been acquired, as the case may be, at the price received or paid in the settlement, in addition to the initial amount which has been paid or which has been received for the conclusion of that transaction or for having subsequently acquired the rights or obligations entered in the securities or contracts in which it is established the same, as appropriate.

III.         Where the rights or obligations entered in the securities or contracts on which a derivative financial transaction is established are listed before the maturity of the transaction, it shall be deemed to be profit or loss, as corresponds, the difference between the amount that is received for the disposal and the initial amount that, if any, has been paid for its acquisition.

IV.         Where the rights or obligations entered in the securities or contracts in which a derivative financial transaction is made are not exercised at maturity or for the duration of its term, it shall be deemed to be profit or loss, in question, the initial amount which, where appropriate, has been received or paid for the conclusion of such an operation or for having subsequently acquired the rights and obligations contained therein, as the case may be.

V.          When what is acquired is the right or obligation to perform a derivative financial transaction, the gain or loss shall be determined in the terms of this article, on the date on which the transaction on which it is liquorted is liquorted. acquired the right or obligation, where appropriate, by adding to the initial amount referred to in the previous fractions, the amount which has been paid or received for the acquisition of the right or obligation referred to in this section. Where the right or obligation to carry out the financial transaction in question is not exercised within the agreed period, the provisions of the preceding section shall be as laid down.

VI.         Where the holder of the right granted in the operation exercises the right and the obligor delivers shares issued by him and which have not been subscribed, treasury shares, the obligation shall not accumulate the price or the premium which would have been perceived to be celebrated nor the income it receives for the exercise of the right granted, and must consider both amounts as contributions to its social capital.

VII.        In the derivative financial transactions in which differences are settled during their lifetime, it shall be considered in each settlement as the gain or as a loss, as appropriate, the amount of the difference settled. The amount which has been received or which has been paid for holding such operations, having acquired the rights or obligations entered into them or having acquired the right or obligation to hold them, shall be added to or subtract from the amount of the last settlement to determine the gain or loss corresponding to it, updated for the period from the month in which it was paid or received and up to the month in which the last settlement is made settlement.

VIII.       The cumulative gain or deductible loss of financial transactions arising from the exchange rate of a currency shall be determined at the close of each financial year, even if the transaction has not been exercised by virtue of that its due date corresponds to a subsequent financial year. For these purposes, the loss or utility shall be determined by considering the exchange rate of the last day of the financial year declared, which is published in the Official Journal of the Federation.

The amounts accumulated or deducted in the terms of this fraction in the financial years preceding that in which the operation in question is due decrease or add, respectively, the net result of the transaction on the date of its maturity; the result thus obtained shall be the cumulative gain or the deductible loss of the year in which the maturity occurs.

IX.         i) dealing with derivative financial transactions by means of which one party delivers liquid resources to another and the latter, in turn, ensures the responsibility for reacquiring the goods, securities or shares, referred to in the operation, for an amount equal to that delivered by the first party plus a proportional charge, shall be deemed to be such a proportional charge as interest in favour or in charge, cumulative or deductible, as appropriate.

In the operations referred to in the preceding paragraph, as an individual or as a whole, as the case may be, they shall not be deemed to have been goods, securities or shares in question, provided that they are returned to the first party not later than the expiry of the said transactions.

The amounts paid or received for the operations described in this fraction will not be updated. The amounts paid and the amounts received shall be considered as claims or debts, as appropriate, for the purposes of Article 44 of this Law.

For the purposes of this article, initial amounts are considered, amounts paid in favor of the counterparty of the financial transaction derived from acquiring the right contained in the respective contract, without such payment generating any interest for the party paying the payment. Such quantities shall be updated for the period between the month in which they were paid or received and the period in which the financial transaction is to be completed, the right or the obligation entered in the or the title in which the operation is recorded, as the case may be. The amount to be paid or collected for acquiring the right or obligation to carry out a financial transaction referred to in the preceding part V shall be updated for the period between the month in which the payment is paid or collected and the one in which the right or obligation entered into the operation on which the right or obligation was acquired is exercised or exercised.

The amounts that one of the parties deposits with the other to perform derivative financial transactions, representing an asset for the first and a liability for the second, will result in the calculation of the adjustment annual inflation, according to the provisions of Article 44 of this Law.

The treatment set out in this Law will be given for interest, gain or loss from financial transactions arising from debt.

When during the currency of a debt-related financial transaction referred to in Article 16-A of the Fiscal Code of the Federation, differences between the prices of the National Index of Prices to the Consumer or any other index, or interest rates to which such transactions are referred, shall be considered as interest in favor or in charge, as appropriate, the amount of each difference and these shall be the interest cumulative or deductible, respectively. Where, in these operations, an amount has been received or paid for holding it or acquiring the right or obligation to participate in such operations, this amount shall be added or subtracted, as the case may be, from the amount of the last settlement to determine the amount of the interest in favour or charge corresponding to that settlement, by updating that amount for the period between the month in which the settlement is paid and the month in which the latter settlement occurs.

In financial transactions arising from debt where differences are not settled during their lifetime, the cumulative or deductible interest shall be that resulting in profit or loss, in accordance with this article.

For the purposes of this Law, when the same derivative financial transaction is related to several assets, to securities or indicators, which make it a debt and capital operation, it will be within the this law for financial transactions arising from debt, for all the amounts paid or received for the financial transaction in question.

Article 21. The revenue received from financial transactions relating to an underlying which does not cotice in a market recognised in accordance with the provisions of the Article 16-C of the Fiscal Code of the Federation, including the initial amounts that are collected, will be accumulated at the time they are payable or when the option is exercised, whichever comes first. The amounts of money directly related to that transaction may be deducted only when the net result of the transaction is known at the time of its liquidation or maturity, irrespective of whether the rights are not exercised or obligations entered in the contracts made for the purposes of this type of transaction.

At the time of the settlement or the maturity of each transaction, the amounts authorised in this Law referred to in the preceding paragraph and the cumulative gain or loss shall be deducted. deductible, as the case may be, irrespective of the time of cumulation of the income referred to in that subparagraph. Where the amounts are higher than the income received, in terms of the preceding paragraph, the result shall be the deductible loss. The result of subtracting the earned income in terms of the previous paragraph, will be the cumulative gain.

Moral persons who obtain loss in terms of the preceding paragraph and are related parts of the person who obtained the gain in the same transaction may only deduct such loss for a period of time. an amount not exceeding the earnings which, if any, the same taxpayer obtained the loss, in other derivative financial transactions whose underlying non-cotice in a recognised market, obtained in the same financial year or in the five exercises. The part of the loss which is not deducted in an exercise shall be updated for the period from the last month of the financial year in which it occurred and until the last month of the immediate financial year preceding the year in which it is deducted. The part of the updated loss which has not been deducted in the financial year concerned shall be updated for the period from the month in which it was last updated and until the last month of the immediate financial year preceding that year. the one to be deducted. Where the taxpayer does not deduce in an exercise the loss referred to in this Article, and may have done so in accordance with the provisions of this Article, he shall lose the right to do so in subsequent years, up to the amount in which he was able to have done so.

Natural persons who obtain losses in derivative financial transactions whose underlying non-cotice in a recognized market shall be within the meaning of the last paragraph of Article 146 of this Law.

Article 22. To determine the gain by divestiture of shares, taxpayers will decrease the income earned per share, the average cost per share of the shares that they sell, according to the next:

I.           The average cost per share, will include all the shares that the taxpayer has of the same moral person on the date of the disposal, even if they do not complete all of them. Such cost will be obtained by dividing the adjusted original amount of the shares among the total number of shares that the taxpayer has to the date of disposal.

II.          The adjusted original amount of the actions will be obtained as follows:

a) It will add to the proven cost of the updated acquisition of the shares that the taxpayer of the same moral person has, the difference that results from subtract from the balance of the net tax income account that in the terms of Article 77 of this Law has the moral person issuing to the date of the disposal of the shares, the balance held by that account at the date of acquisition, when the first of the balances is greater,
in the share that corresponds to the shares held by the Taxpayer acquired on the same date.

To determine the difference referred to in the preceding paragraph, the balances of the net tax utility account that the moral person issuing of the shares that is enajenan would have had the dates of acquisition and disposal of the shares, must be updated for the period from the month in which the last update was made prior to the date of the acquisition or the disposal, according to in question, and up to the month in which the shares are sold.

b) The result that is obtained under item (a) above, will be subtracted, tax losses pending to be decreased, reimbursements paid, as well as the difference referred to in the fifth paragraph of article 77 of this Law, of the moral person issuing the actions which are updated.

The outstanding tax losses as referred to in the preceding paragraph shall be those which the moral person concerned has at the date of disposal, which correspond to the number of shares the taxpayer has to the quoted date. Such losses shall be updated for the period from the month in which the last update was made and until the month in which the disposal in question is carried out.

To the pending tax losses as referred to in the previous paragraph, the amount of the losses applied by the moral person will not be reduced the effects of the provisional payments in respect of the months of the financial year concerned.

The reimbursements paid by the moral person concerned shall be those corresponding to the number of shares held by the taxpayer in the month in which the disposal.

The difference referred to in the fifth paragraph of article 77 of this Law will be the difference pending to be diminished that the issuing company has to the date of the disposal and corresponding to the number of shares held by the taxpayer per month in which the disposal is carried out.

Tax losses to be reduced, reimbursements and the difference, as referred to in this paragraph, of the moral person concerned shall be allocated to the the proportion representing the number of shares which has the date of disposal of the shares of that moral person, corresponding to the financial year in which the loss was obtained, the repayment, or the determination of the the difference cited, as appropriate, in respect of the total outstanding shares held by the the person concerned in the financial year concerned.

Tax losses to be reduced, reimbursements paid and the difference, as referred to in this paragraph, obtained, paid or determined, respectively, shall be considered only for the period from the month of acquisition of the shares and up to the date of their disposal.

III.         The result obtained in accordance with the previous fraction, the amount of tax losses that the moral person issuing of the shares has obtained in exercises prior to the date on which the taxpayer acquired the actions in question and that such a moral person has decreased from its tax utility for the period from the month in which the taxpayer acquired such shares and until the month in which he was placed in them.

The losses referred to in the preceding paragraph shall be assigned to the taxpayer in the proportion representing the number of shares held by that person (a) the date of the disposal, corresponding to the year in which the said moral person decreased those losses, in respect of the total number of outstanding shares held by the person concerned, in the financial year in question.

When the balance of the net tax income account to the date of acquisition, in addition to the amount of reimbursements paid, of the outstanding difference of decrease as referred to in the fifth paragraph of Article 77 of this Law and the pending tax losses, as stated in paragraph (b) (b) of this article, is greater than the sum of the balance of the net fiscal utility account to the the date of the addition of the reduced losses referred to in the first subparagraph of this fraction, the difference will be reduced from the proven cost of acquisition. Where such difference is greater than the proven cost of acquisition, the shares in question shall have no average cost per share for the purposes of this article; the surplus determined in accordance with this paragraph, considered per share, is shall be reduced, updated from the month of the disposal and up to the month in which it is reduced, of the average cost per share that is determined in the terms of this article in the disposal of the following or following immediate actions the taxpayer, even if they are different broadcasters.

IV.         The updated cost of the acquisition of the shares shall be updated for the period from the month of its acquisition and until the month in which they are sold. The losses and the difference pending to be reduced as referred to in the fifth paragraph of Article 77 of this Law shall be updated from the month in which they were last updated and until the month in which the shares are held. The reimbursements paid shall be updated for the period from the month in which they were paid and up to the month in which the shares are issued.

To determine the gain in the disposal of shares with a holding period of twelve months or less, taxpayers may choose to consider as their original adjusted amount the cost proof of purchase of the shares diminished of the repayments and of the dividends or profits paid, by the moral person issuing the shares, corresponding to the period of holding of the shares in question, updated in the terms of section IV of this article. In the case of dividends or profits paid, they shall be updated for the period from the month in which they were paid and until the month in which the shares in question are put in place.

Dealing with shares issued by moral persons resident abroad, to determine the average cost per share referred to in this article, will be considered as the original adjusted amount of the actions, the proven cost of acquiring the same decreased reimbursements paid, all these concepts updated in the terms of the IV fraction of this article.

When, the number of shares in circulation of the issuing moral person would have varied, and the same amount of their share capital would have been maintained, taxpayers would have to apply it. provided in this article when the actions in question are in place, provided that the cost of the total of the shares that are received is equal to that of the stock package that is replaced.

In cases where the number of shares of the issuing moral person has varied during the period between the dates of acquisition and disposal of the shares owned by the taxpayers, these shall determine the difference between the balances of the net tax profit account of the issuing moral person, the losses, the repayments and the difference to be reduced as referred to in the fifth paragraph of Article 77 of the this Law, for each of the periods between the dates of acquisition and disposal of the shares, where the same number of shares have been held. In the case of the difference in the balances of the net tax profit account, the balance shall be deducted at the end of the balance at the beginning of the balance, both at the date of disposal of the shares.

The difference in the balances of the net tax income account referred to in the preceding paragraph, as well as the tax losses, the reimbursements paid and the difference referred to in the fifth paragraph of the Article 77 of this Law to be reduced, for each period, shall be divided between the number of shares of the moral person existing in the same period and the ratio thus obtained shall be multiplied by the number of shares held by the taxpayer in that period. The results thus obtained will be added or subtracted, as the case may be.

The issuing companies shall provide to the partners that request it, a record with the information necessary to determine the adjustments referred to in this article. the data established in the tax voucher which they have issued. In the case of shares registered in the National Registry of Securities, the company issuing the shares, regardless of the obligation to provide the shareholders with the constancy, must provide this information to the National Banking Commission and of the values in the form and terms that the tax authorities point out. The accounting and documentation relating to such information shall be kept for the period provided for in Article 30 of the Tax Code of the Federation, counted from the date on which such evidence is issued.

When a moral person acquires from a natural person or a resident abroad, shares of another broadcaster, the shareholder of the acquiring moral person shall not consider within the proven cost of acquisition of the amount of dividends or profits that have been generated prior to the date of acquisition and which, directly or indirectly, have already been considered as part of the proven cost of acquiring the acquired shares of the a person or a resident abroad. For the purposes of the information to be provided to its shareholders in the terms of this article, the acquiring moral person shall decrease those profits or dividends, updated from the balance of the net tax income account that has the date of the disposal of the shares of the same. The update of the profits or dividends shall be made from the month in which they were added to the net tax profit account and until the month in which the disposal in question is carried out.

Where reference is made in this article to repayments paid, it shall be understood as including depreciation and capital reductions, as referred to in Article 78 of this Regulation. In such cases, taxpayers shall only consider redemptions, repayments or capital reductions, which correspond to the shares that have not been cancelled, on the occasion of such transactions.

The provisions of this Article shall also apply when the rights of participation, whatever the name with which they are designated, are put in place in a joint participation, when through business activities are performed. In this case, the updated value of the contribution made by the enajenante to the participating association or the amount paid for its participation shall be considered as a proven cost of acquisition. For these purposes, the difference in the balances of the net tax income account referred to in paragraph (a) of this article, the outstanding tax losses to be reduced, the reimbursements paid and the difference to which it relates The fifth paragraph of Article 77 of this Law, all of these concepts contained in paragraph (b) of the said fraction, shall be considered in the proportion in which the distribution of the profits in the corresponding agreement has been agreed.

Article 23. The taxpayer-owned shares for which the average cost would have already been calculated will have as proven cost of acquisition in subsequent enajenations, the average cost per determined action according to the calculation carried out in the immediate disposal of shares of the same moral person. In this case, it shall be considered as the date of acquisition of the shares, for the purposes of considering the concepts that are added and subtracted in the terms of the fractions II and III of Article 22 of this Law, as well as for the updating of these concepts, the month in which the previous immediate disposal of shares of the same moral person was carried out. In order to determine the difference between the balances of the net tax profit account referred to in point (a) of Part II of the said Article, the balance of the account at the date of acquisition shall be deemed to be the balance of the account net tax utility which would have been the date of the immediate disposal of the shares of the same moral person.

For the purposes of Article 22 of this Law, it is considered a proven cost of acquiring the shares issued by the divided societies, which is derived from calculating the average cost per share have the shares exchanged from the company being divided by each shareholder at the date of such act, in the terms of the previous article, and as the date of acquisition of the exchange.

The proven cost of acquiring shares issued by the merging company or arising as a result of the merger will be the result of calculating the average cost per share have had the shares that were exchanged for each shareholder, in the terms of the previous article, and the date of acquisition shall be that of the exchange.

In the case of merger or division of companies, the shares acquired by the merging companies or the divisions, as part of the assets transferred, will have the cost of acquiring the cost average per share held in the merging or breakaway companies at the time of the merger or division.

They will be considered as having no proven cost of acquisition, the shares obtained by the taxpayer for profit capitalizations or other items belonging to the accounting capital or by reinvestments of dividends or profits made within 30 calendar days following their distribution.

The provisions of the preceding paragraph shall not apply to shares acquired by the taxpayer before 1 January 1989 and the action which it gave rise to have been taken before the taxpayer. the date referred to, in which case the nominal value of the action in question may be considered as a proven cost of acquisition.

Article 24. The tax authorities will authorize the sale of shares at tax expense in cases of restructuring of companies incorporated in Mexico belonging to the same group. the following requirements are met:

I.           The average cost of the shares in respect of which the application is made is determined, to the date of the disposal, in accordance with the provisions of Articles 22 and 23 of this Law, distinguishing them by means of enajenante, issuing and acquiring, of the same.

II.          The shares received by the applicant for the shares held by the person in direct ownership of the acquirer and within the same group for a period not less than two years, from the date of the authorization to which he/she is refers to this article.

III.         The actions that the applicant receives for the actions he/she enajene, represent in the subscribed and paid capital of the society of the shares that he receives, the same percentage that the actions that he/she would represent before the disposal, on the total of the consolidated accounting capital of the issuing companies of the shares which it shares and of which it receives, on the basis of the consolidated financial statements of the companies involved in the transaction, which for These effects must be drawn up in the terms laid down in the Rules of Procedure, in each case the bases according to which the value of the shares was determined, in relation to the total value of the shares.

IV.         The company issuing the shares which the applicant receives for the disposal, shall release the minutes of the assembly on the occasion of the subscription and payment of capital for the actions it receives, protocolised to the public purse, the information relating to the operation which is established in the Regulation of this Law shall be recorded in that act. The issuing company shall send a copy of the minutes to the tax authorities within a period not longer than 30 days from the date of the protocol.

V.          The consideration to be derived from the disposal consists in the exchange of shares issued by the acquiring company of the shares it transmits.

VI.         The increase in the share capital of the acquiring company of the shares that are used, be it in the amount that represents the fiscal cost of the actions that are transmitted.

VII.        an opinion, by a public accountant registered with the tax authorities, indicating the proven cost of the adjusted acquisition of shares pursuant to Articles 22 and 23 of this Law, to the date of acquisition.

VIII.       The adjusted original amount of the total of the listed shares, determined in accordance with the section VII of this article at the time of the disposal, is distributed in proportion to the shares that are received in the terms of the Section III of the same article.

IX.         The companies involved in the restructuring are found to be in the terms of Article 32-A of the Tax Code of the Federation or present the information statement on their tax situation in the terms of Article 32-H of the Code, where they are obliged to do so, in the financial year in which the restructuring is carried out.

X.          It is shown that the participation in the share capital of the companies issuing the shares which are used is maintained at the same rate by the company which controls the group or by the undertaking which, if appropriate, is constituted for This effect.

In the event of non-compliance with any of the requirements referred to in this Article, the tax corresponding to the disposal of shares must be paid, considering the value in which the shares have been concluded between independent parties in comparable transactions or, in the light of the value to be determined by means of a person authorised by the tax authorities. The tax to be determined shall be paid by the enajenant, updated from the date on which the disposal was made and up to the date on which it is paid.

For the purposes of this article, it is considered a group, the set of companies whose shares with the right to vote representative of the share capital are directly or indirectly owned by the same persons in at least 51%. For these purposes, the shares that are considered to be placed among the large investor public shall not be computed in accordance with the rules that the Tax Administration Service may issue, provided that such actions have been effectively offered and placed among the large investor public. Shares that have been repurchased by the issuer are not considered to be placed among the large investor public.

CHAPTER II

OF DEDUCTIONS

SECTION I

OF DEDUCTIONS IN GENERAL

Article 25. Taxpayers can make the following deductions:

I.           The returns that are received or the discounts or bonuses that are made in the exercise.

II.          The cost of the sold.

III.         The net expense of discounts, bonuses, or returns.

IV.         Investments.

V.          Non-performing loans and losses on a fortuitous basis, force majeure or disposal of goods other than those referred to in section II of this Article.

VI.         The fees paid by employers paid to the Mexican Social Security Institute, including those provided for in the Unemployment Insurance Act.

VII.        The interest earned on the financial year, without any adjustment. In the case of moratory interest, only those actually paid shall be deducted from the fourth month. For these purposes, it is considered that the payment for moratoria interest that is made after the third month following that in which the arrears were incurred cover, in the first place, the delinquent interest accrued in the three months following the one in which the default was incurred, until the amount paid exceeds the amount of accrued interest earned from the last period quoted.

VIII.       The annual adjustment for inflation that is deductible under the terms of Article 44 of this Law.

IX.         The advances and yields paid by the cooperative production companies, as well as the advances that the civil societies and associations give to their members, when they distribute them in the terms of section II of the Article 94 of this Law.

X.          The contributions made for the creation or increase of reserves for pension funds or retirements of staff, complementary to those established by the Law of Social Security, and of seniority premiums incorporated in the terms of this Law. The amount of the deduction referred to in this fraction shall in no case exceed the amount resulting from the application of the factor of 0.47 to the amount of the contribution made in the financial year concerned. The factor referred to in this paragraph shall be 0,53 where the benefits granted by the taxpayer in favour of its employees, which in turn are exempt income for those workers, in the financial year in question, shall not be reduced. in respect of those granted in the previous immediate fiscal year.

When for the expenses referred to in section III of this article, the taxpayers would have paid any advance, this will be deductible as long as the requirements set out in the article are met. 27, fraction XVIII of this Act.

Article 26. Dealing with moral persons residing abroad, as well as any entity deemed to be a moral person for tax purposes in your country, who have one or more permanent establishments in the country, may make deductions corresponding to the activities of the permanent establishment, be it the ones in Mexico or elsewhere, provided that the requirements laid down in this Law and its Rules of Procedure.

When the persons referred to in the preceding paragraph reside in a country with which Mexico has in force a treaty to avoid double taxation, it may be possible to deduct the prorated expenses with the central office or its establishments, provided that both the central office and the establishment, in which the eogation is carried out, also reside in a country with which Mexico has a treaty to avoid double taxation and has a broad agreement for the exchange of information and in addition to the requirements establish the Regulation of this Law.

The remittances that the permanent establishment located in Mexico to the central office of the society or to another establishment of it abroad will not be deductible, even if these remittances are made for royalties, fees, or similar payments, in exchange for the right to use patents or other rights, or in the form of commissions for specific services or for representations made or by interest for money sent to the permanent establishment.

Permanent establishments of foreign-resident companies engaged in international air or ground transportation, rather than the deductions provided for in Article 25 of this Law, make the deduction of the proportion of the average expenditure which the undertaking has had for its operations in the same financial year, taking into account the central office and all its establishments. Where the tax year of such foreign resident companies does not coincide with the calendar year, they shall make the deduction referred to in the last financial year of the undertaking.

For the purposes of the preceding paragraph, the average expense shall be determined by dividing the utility obtained in the year by the company in all its establishments before the payment of the income tax, between the total of the revenue received in the same financial year; the ratio thus obtained will be subtracted from the unit and the result will be the factor of expenditure applicable to the income attributable to the establishment in Mexico. Where in the year the whole of the revenue of the company is less than all the expenses of all its establishments, the factor of expenditure applicable to the revenue shall be equal to 1.00.

Article 27. The deductions authorized in this Title must meet the following requirements:

I.           To be strictly indispensable for the purposes of the activity of the taxpayer, except in the case of non-onerous or remunerative donations, which satisfy the requirements laid down in this Law and in the general rules that for the purpose establish the Tax Administration Service and be granted in the following cases:

a) To the Federation, federal entities or municipalities, their decentralized bodies that are taxed under Title III of this Law, as well as to the international organizations of which Mexico is a full member, provided that the purposes for which those bodies were created correspond to the activities for which authorization can be obtained to receive taxes.

b) To the entities referred to in Article 82 of this Act.

c) To the moral persons referred to in Articles 79, 19 and 82 of this Law.

d) To the moral persons referred to in the fractions VI, X, XI, XX, and XXV of Article 79 of this Law and which comply with the requirements laid down in the Article 82 of the same Law.

e) To civil partnerships and societies that grant scholarships and meet the requirements of Article 83 of this Act.

f) To business school programs.

The Tax Administration Service shall publish in the Official Journal of the Federation and make known on its website the data of the institutions referred to in points (b), (c), (d) and (e) of this fraction that meet the above requirements.

Dealing with donations granted to educational institutions authorized to receive Title III donations of this Law, the same will be deductible provided that are public establishments or property of private persons who have authorization or recognition of official validity of studies in the terms of the General Law of Education, are intended for the acquisition of investment goods, for research scientific or technological development as well as administration costs To the extent, in the latter case, that the Regulation of this Law is indicated, it is a question of non-onerous and non-remunerative donations, and provided that these institutions have not distributed remnants to their members or members in the last five years.

The total amount of the donations referred to in this fraction shall be deductible for up to a quantity not exceeding 7% of the tax utility obtained by the a taxpayer in the immediate financial year preceding the year in which the deduction is made. When donations are made in favor of the Federation, of the federal entities, of the municipalities, or of its decentralized agencies, the deductible amount may not exceed 4% of the tax utility referred to in this paragraph, without No case is the limit of the total deduction, considering these donations and those made to different authorized donatarias, exceeds the 7% cited.

II.          That when this Act permits the deduction of investments, it is necessary in the terms of Section II of this Chapter.

III.         Be covered by a tax voucher and payments whose amount exceeds $2,000.00 are made by electronic transfer of funds from accounts opened in the name of the taxpayer in institutions that make up the system financial and the entities to be authorized by the Bank of Mexico for this purpose; nominative check of the taxpayer's account, credit card, debit card, services, or the so-called electronic wallets authorized by the Service of Tax Administration.

Dealing with the acquisition of fuels for maritime, air and land vehicles, the payment must be in form indicated in the paragraph above, even if the consideration of such acquisitions does not exceed $2,000.00.

The tax authorities may release from the obligation to pay the fees through the means set out in the first paragraph of this fraction, where they are carried out in populations or in rural areas, without financial services.

Payments to be made through a nominee check must contain the key in the federal taxpayer register of the person who issues it, as well as the obverse of the same expression "for payment to the beneficiary".

IV.         Be properly recorded in accounting and be subtracted only once.

V.          Comply with the obligations set forth in this Law on the retention and integer of taxes charged by third parties or, where appropriate, be held on these copies of the documents in which the payment of such taxes is recorded. In the case of foreign payments, they may only be deducted as long as the taxpayer provides the information to which he is obliged under the terms of Article 76 of this Law.

Payments which are at the same time income in the terms of Chapter I of Title IV of this Law may be deducted provided that the fees for the purposes of the remuneration, corresponding deductions and local tax deductions for wages and, in general, for the provision of an independent personal service, consist of tax vouchers issued in terms of the Tax Code of the Federation and compliance with the obligations referred to in Article 99, fractions I, II, III and V of This Law, as well as the provisions that, where applicable, regulate the subsidy for employment and the taxpayers comply with the obligation to register workers at the Mexican Social Security Institute when they are obliged to do so, in the terms of the social security laws.

VI.         That when the payments whose deduction is intended to be made are made to taxpayers who cause the value added tax, the tax will be transferred in an express and separate way in the corresponding tax voucher.

In cases where the tax provisions lay down the obligation to adhere to the marking or seal on the containers and containers holding the Products purchased, the deduction referred to in Article 25 (II) of this Law, may only be made where the products have the corresponding marking or seal attached.

VII.        That in the case of interest by capital taken on loan, these have been invested in the business purposes. Where the taxpayer grants loans to third parties, their employees or their officials, or to their shareholders or shareholders, only interest on the basis of capital taken in loans up to the amount of the lowest rate of interest shall be deductible. the interest stipulated in the loans to third parties, their employees or their shareholders or shareholders, in the portion of the loan that would have been made to them and issue and deliver tax proof to those who have granted the loan; be used as a proof of receipt if any of these operations do not stipulate interest, no deduction shall be made in respect of the proportional amount of the loans made to the persons mentioned. These last limitations do not apply to credit institutions, limited-object financial corporations or ancillary credit organizations, in the performance of their object's operations.

In the case of capital taken out on loan for the acquisition of investments or for the performance of expenses or when the investments or expenses are carried out credit, and for the purposes of this Act such investments or expenses are not deductible or partially deductible, the interest arising from the capital taken out on loan or from the operations on credit, shall only be deductible in the same proportion in which the investments or expenses are.

Dealing with the interest derived from the loans referred to in Article 143 (III) of this Law, they shall be deducted until they are pay in cash, goods or services.

VIII.       That, in the case of payments, which in turn are the income of taxpayers, of the taxpayers referred to in Articles 72 and 73 of this Law, as well as those made to the taxpayers referred to by the The last paragraph of Article 17 (I) of this Law and the donations, which are only deducted when they have actually been carried out in the financial year concerned, shall be construed as effectively being used when they have been paid in cash, by electronic transfers of funds from accounts opened in the name of the taxpayer in institutions that make up the financial system and the entities that the Bank of Mexico authorizes for this purpose; or in other goods other than credit. In the case of payments by cheque, it shall be deemed to have been paid on the date on which the cheque was charged or when the taxpayer transfers the cheques to a third party, except where such transmission is in procurement. It is also understood that it is effectively rogated when the interest of the creditor is satisfied by any form of extinction of the obligations.

Where the payments referred to in the preceding paragraph are made by cheque, the deduction shall be made in the financial year in which it is charged, provided that the the date on which the tax voucher has been issued and the date on which the cheque was actually charged has not elapsed more than four months, except where both dates correspond to the same financial year.

IX.         That in the case of fees or rewards to administrators, commissioners, directors, general managers or members of the board, supervisory, advisory or any other type, these shall be determined in terms of total amount and monthly perception or attendance, affecting in the same way the results of the taxpayer and meeting the following assumptions:

a) That the annual amount established for each person is not higher than the annual salary earned by the society's most senior official.

b) That the total amount of the established fees or rewards does not exceed the amount of the annual wages and salaries accrued by the staff of the taxpayer.

c) That do not exceed 10% of the total amount of the other deductions for the exercise.

X.          That in the case of technical assistance, transfer of technology or royalties, it is established before the tax authorities that the person who provides the knowledge has its own technical elements for it; direct and not through third parties, except in cases where the payments are made to residents in Mexico, and in the respective contract it has been agreed that the benefit will be carried out by an authorized third party; and that it does not consist of the simple possibility of obtain it, but in services that are actually carried out.

XI.         That in the case of social security expenditure, the corresponding benefits are generally granted for the benefit of all workers. In the case of pantry vouchers awarded to workers, they will be deductible as long as their delivery is made through the electronic purses that the Tax Administration Service authorizes to the effect.

For the purposes of the preceding paragraph, dealing with unionized workers is deemed to be granted in a manner general when they are established according to collective contracts of employment or contracts law.

When a moral person has two or more unions, it is considered that social welfare benefits are generally granted whenever they are granted agreement with collective labour contracts or law contracts and are the same for all workers of the same trade union, even if they are different in relation to those granted to workers of other trade unions of the same person moral, according to their collective contracts of work or contracts law.

Dealing with non-unionized workers, it is considered that social welfare benefits are general when the same benefits are granted to all of them and provided that the deductible erogations that are carried out by this concept, excluding the contributions of social security, are on average arithmetic for each non-unionized worker, in an amount equal to or less than the erogations deductibles for the same concept, excluding social security contributions, made by each unionised worker. In the absence of unionized workers, the provisions of this paragraph are met when the last paragraph of this paragraph is in place.

In the case of contributions to savings funds, these will only be deductible when, in addition to being general in the terms of the three paragraphs the amount of the contributions made by the taxpayer is equal to the amount contributed by the workers, the contribution of the taxpayer does not exceed thirteen percent of the salary of the worker, without in any case such contribution exceeds the equivalent amount of 1.3 times the general minimum wage of the geographical area corresponds to the worker, who is elevated to the year and provided that the permanence requirements that are established in the Regulation of this Law are met.

Life insurance premium payments to be granted for the benefit of workers will be deductible only when the benefits of such insurance cover the death of the holder or in the cases of invalidity or incapacity of the holder to carry out a paid personal work in accordance with the laws of social security, which are handed over as a single payment or in the cases which the effect of the parts. The payments of insurance premiums for medical expenses incurred by the taxpayer for the benefit of the workers shall be deductible.

Dealing with the social security benefits referred to in the preceding paragraph, it is considered that these are general when they are the same for all workers in the same trade union or for all non-unionized workers, even if such benefits are granted only to unionized workers or non-unionized workers. In addition, the payments made by way of life insurance premiums and medical expenses and contributions to the savings funds and pension and retirement funds supplementary to those established by the Social Security Act Article 29 of this Law shall not be considered to determine the arithmetic mean referred to in the fourth paragraph of this fraction.

The amount of deductible social welfare benefits granted to non-unionized workers, excluding social security contributions, contributions to the savings funds, pension funds and retirement pensions to which the Social Security Law referred to in Article 29 of this Law, the fees made for medical expenses and premiums of the Life insurance shall not exceed 10 times the general minimum salary for the geographical area which corresponds to the worker, raised per year.

XII.        That premium payments for insurance or sureties be made in accordance with the laws of the matter and correspond to concepts that this Law indicates as deductibles or that in other laws the obligation to hire them is established and whenever, in the case of insurance, during the duration of the policy no loans are granted to any person, by the insurer, with guarantee of the insured sums, of the premiums paid or of the mathematical reserves.

In cases where insurance is intended to provide benefits to workers, the provisions of the previous section must be observed. If, by means of insurance, it is necessary to compensate the taxpayer for the decrease in his productivity, which could cause death, accident or illness, of technicians or leaders, the deduction of premiums will always be provided by the insurance a plan in which the procedure for fixing the amount of the benefit is determined and the time limits and the requirements laid down in general provisions are satisfied.

XIII.       That the cost of acquisition declared or the interest derived from credits received by the taxpayer correspond to those of the market. When they exceed the market price, the surplus shall not be deductible.

XIV. That in the case of the purchase of import goods, it is established that the legal requirements for the import of the goods were met. The amount of such acquisition shall be deemed to have been declared on the basis of the import.

XV.        That in the case of losses due to bad loans, these are considered to be carried out in the month in which the limitation period is consumed, which corresponds, or before, if the practical impossibility of recovery is notorious.

For the purposes of this article, it is considered that there is a notorious practical impossibility of charging, among others, in the following cases:

a) Dealing with loans whose main purpose on the day of their maturity does not exceed thirty thousand units of investment, when within one year of the from the fact that it incurs arrears, its recovery would not have been achieved. In this case, they shall be deemed to be non-performing in the month in which a year of default is met.

When two or more credits are given with the same physical or moral person as mentioned in the preceding paragraph, all the credits must be added granted to determine if they do not exceed the amount referred to in that paragraph.

The provisions of paragraph (a) of this section shall apply in respect of credits contracted with the general public, the main fate of which is the The tax authorities will be in a position of 5 000 pesos and thirty thousand units of investment, provided that the taxpayer agrees with the general rules that the Tax Administration Service will report on these loans to the credit reporting companies obtaining the authorisation of the Secretariat of Finance and Public Credit in accordance with the Law to regulate Credit Information Societies.

The provisions of subparagraph (a) of this fraction shall apply where the debtor of the credit in question is a taxpayer who carries out business and the a written report to the debtor in question, which shall make the deduction of non-performing credit, in order for the debtor to accumulate the income derived from the debt not covered in the terms of this Law. Taxpayers who apply the provisions of this paragraph shall report no later than 15 February of each year of the non-performing loans that they deducted in the terms of this paragraph in the previous immediate calendar year.

b) Dealing with credits whose principal fortunes on the day of maturity are greater than thirty thousand units of investment when the creditor has sued against the judicial authority the payment of the credit or the agreed arbitration procedure has been initiated for its recovery and in addition to that provided for in the final paragraph of the previous subparagraph.

c) The debtor is found to have been declared bankrupt or contest. In the first case, there must be a judgment declaring bankruptcy for bankruptcy or for a lack of assets.

Dealing with the Credit Institutions, it is considered that there is a notorious practical impossibility of recovery in the credit portfolio, when the credit portfolio is punished in accordance with the provisions laid down by the National Banking and Securities Commission.

For the purposes of Article 44 of this Law, taxpayers who deduct credits for non-performing loans must consider them cancelled in the last month of the first half of the year in which they are deducted.

Dealing with accounts receivable that have a mortgage guarantee, only fifty percent of the amount will be deductible where the assumptions referred to in point (b) above are given. Where the debtor makes the payment of the debit or the application of the amount of the auction is made to cover the debit, the deduction of the balance of the account receivable shall be made, or in his case the accumulation of the recovered amount.

XVI.       (a) the cost of payments to employees or third parties, which are conditional upon the payment of the credits in the periods of time or in the financial leasing contracts in which they have intervened, are deducted from the exercise in which such credits or income are collected, provided that the other requirements of this Act are met.

XVII.      That in the case of payments made to agents and mediators resident abroad, the requirements of information and documentation provided for in the Regulations of this Law are met.

XVIII.     That when performing the corresponding operations or at the latest the last day of the financial year the requirements are met that for each deduction in particular establishes this Law. In the case of the tax voucher referred to in the first paragraph of section III of this Article, the latter shall be obtained at the latest on the day on which the taxpayer is required to make his declaration. With regard to the documentation of the withholding tax and of the payments referred to in paragraphs V and VI of this Article, the same shall be made within the time limits which the tax provisions lay down, and the proof documentation is obtained on that date. In the case of the information declarations referred to in Articles 76 of this Law, and 32, fractions V and VIII of the Law on the Value Added Tax, they must be submitted within the time limits set by the aforementioned Article 76 and count from that date with the corresponding tax vouchers. In addition, the date of issue of the tax vouchers of a deductible expense shall correspond to the exercise by which the deduction is made.

In the case of advances in respect of the expenditure referred to in Article 25 (III) of this Law, they shall be deductible in the financial year in which they are carried out, provided that the tax proof of the advance payment is made in the same financial year in which the payment was made and the tax proof that the whole of the transaction for which the advance was made was lodged at the latest the last day of the financial year following the year in which the advance was given. The deduction of the advance in the financial year in which it is paid shall be the amount of the same and, in the year in which the goods or services are received, the deduction shall be the difference between the total value entered in the tax voucher and the amount of the advance. In any event to make such a deduction, the other requirements laid down by the tax provisions shall be complied with.

When the taxpayer submits the information statements referred to in Article 76 of this Law at the request of the tax authority, the requirement referred to in the first paragraph of this fraction shall not be deemed to be in breach, provided that such declarations are made within a maximum period of 60 days from the date on which the notification is notified. same.

XIX.       (i) the amounts to be paid in respect of payments made for the purpose of wages and in general for the provision of a personal service to workers entitled to the employment allowance. (a) allowance for the benefit of the workers concerned and the requirements referred to in the provisions governing them, except where they are not required in accordance with those provisions.

XX.        That the amount of the goods, raw materials, semi-finished or finished products, in existence, which for deterioration or other causes not attributable to the taxpayer would have lost its value, is deducted from the inventories during the exercise in which this occurs; provided that the requirements laid down in the Regulation of this Law are met.

Taxpayers may deduct the goods, raw materials, semi-finished or finished products to which the referred to in the preceding paragraph, provided that in the case of basic goods for human subsistence in food, clothing, housing or health, before they are destroyed, they are offered in donation to the institutions authorized to receive deductible donations under this Law, dedicated to the care of basic subsistence requirements for food, clothing, housing, or health of persons, sectors, communities or regions, of scarce resources, complying with the requirements that the Regulation of this Law establishes for such purposes.

We will not be able to offer in donation those goods that in terms of other legal order, related to the handling, care or treatment of such goods, expressly prohibit their sale, supply, use or establish another destination for them.

XXI. That it is a matter of expenses that under the General Law of Cooperative Societies are generated as part of the social security fund to which the Article 58 of that order and the cooperating partners shall be granted the same as deductibles where the resources of the relevant fund are available, provided that the following requirements are met:

a) The social forecasting fund to be derived from the annual contribution of the percentage, which on net income, is determined by the General Assembly.

b) That the Social Welfare Fund is intended in terms of Article 57 of the General Law of Cooperative Societies to the following reservations:

1.      To cover occupational risks and diseases.

2.      To form funds and partner retirement assets.

3.      To form funds for seniority premiums.

4. To form funds for various purposes covering: medical and funeral expenses, disability allowances, educational scholarships for partners or their children, childcare, cultural and sporting activities and other social welfare benefits of a similar nature.

In order to apply the deduction referred to in this number, the cooperative society must pay, except in the case of disability benefits, directly to the service providers and in favour of the cooperative partner concerned, the corresponding social security benefits, with the tax vouchers issued in the name of the cooperative society.

c) Credit that at the beginning of each financial year the General Assembly set the priorities for the implementation of the Social Welfare Fund in accordance with the economic prospects of the cooperative society.

XXII.      That the value of the goods received by the permanent establishments located in Mexico, of taxpayers resident abroad, of the central office or of another establishment of the taxpayer located abroad, cannot be above the customs value of the goods in question.

Article 28. For the purposes of this Title, they will not be deductible:

I.           The income tax payments from the taxpayer or third parties, or contributions from the subsidized party or originally from third parties, in accordance with the relevant provisions, except for contributions paid to the Mexican Social Security Institute in charge of employers, including those provided for in the Unemployment Insurance Act.

Nor shall the amounts of the employment allowance paid by the taxpayer, as a retainer, be deductible to the persons who provide subordinate personal services and/or the accessories of the contributions, with the exception of surcharges which have actually been paid, including by way of compensation.

II.          The expenses and investments, in the proportion representing the income exempt from the total income of the taxpayer. The expenses incurred in connection with investments that are not deductible under this Chapter. In the case of automobiles and aircraft, they may be deducted in the proportion representing the original amount of the deductible investment referred to in Article 36 of this Law, in respect of the acquisition value thereof.

III.         Gifts, attentions and other expenses of a similar nature with the exception of those directly related to the disposal of products or the provision of services and which are offered to clients in general.

IV.         The representation expenses.

V.          The travel expenses, in the country or abroad, when they are not intended for lodging, feeding, transportation, use or temporary enjoyment of cars and mileage payment, of the person receiving the viatic or when they are applied within a 50-kilometer belt surrounding the establishment of the taxpayer. Persons in favor of which the eogation is performed must have a working relationship with the taxpayer in the terms of Chapter I of Title IV of this Law or must be providing professional services. The costs referred to in this section shall be covered by a tax voucher where they are carried out on national territory or with the relevant documentation, where they are carried out abroad.

Dealing with travel expenses for food, these will only be deductible up to an amount that does not exceed $750.00 per day per beneficiary, when they are being eroded in national territory, or $1,500.00 when they are being eroded abroad, and the taxpayer accompanies the tax voucher or the proof documentation that will cover the lodging or transportation. Where the taxpayer only accompanies the tax voucher relating to transport, the deduction referred to in this paragraph shall only be carried out when the payment is made by means of a credit card. credit of the person making the trip.

Travel expenses for the use or temporary enjoyment of automobiles and related expenses shall be deductible up to an amount not exceeding $850.00 per day, where they are being eroded on a national or foreign territory, and the taxpayer accompanies the tax voucher or proof of documentation to cover the lodging or transport.

Travel expenses for lodging, will only be deductible up to an amount not exceeding $3,850.00 per day, when they are eroded abroad, and the The taxpayer accompanies the documentation that covers them in relation to the transport.

When the total or part of the travel expenses or expenses for seminars or conventions, carried out at home or abroad, are part of the the recovery fee to be established for that purpose and in the tax proof or proof that the amounts concerned are not broken down shall be deductible from that quota only, an amount which is not exceeds the limit of travel expenses per day for the food referred to in this Article fraction. The difference resulting from this paragraph shall not be deductible.

VI.         The penalties, damages and damages or conventional penalties. Compensation for damages and conventional penalties may be deducted if the law imposes the obligation to pay them for the purpose of creating risks created, objective liability, fortuitous case, force majeure or acts of third parties, except the damages or the cause which gave rise to the conventional penalty, have been caused by fault attributable to the taxpayer.

VII.        The interest accrued on loans or for purchase, of securities charged to the Federal Government entered in the National Register of Securities, as well as for the purposes of credit or credit claims referred to in Article 8 of this Regulation. Law, where the loan or acquisition was made from natural persons or moral persons for non-profit purposes.

Except as provided in the preceding paragraph to credit institutions and stock houses, residents of the country, who make interest payments from securities or securities lending operations referred to in the preceding paragraph which have been concluded with natural persons, provided that such transactions comply with the requirements set by the Service of Tax administration, by means of general rules.

VIII.       The provisions for the creation or increase of supplementary reserves of assets or liabilities which are made up of the acquisitions or expenditure of the financial year, with the exception of those relating to the workers for the financial year.

IX.         Reservations that are created for staff allowances, for seniority payments or any other similar nature, with the exception of those set out in the terms of this Act.

X.          The premiums or overpricing on the nominal value that the taxpayer pays for the reimbursement of the shares he/she issues.

XI.         Losses by chance, force majeure or disposal of goods, where the acquisition value of the goods does not correspond to the market value at the time the goods were acquired by the enajenante.

XII.        Commercial credit, even if acquired from third parties.

XIII.       Payments for the use or temporary enjoyment of aircraft and vessels, which have no concession or permission from the Federal Government to be commercially exploited.

Trying to pay for the use or temporary enjoyment of houses, they will only be deductible in cases where they meet the requirements laid down in the This Law. Recreational homes, in no case will be deductible.

Dealing with automobiles, only payments made for the use or temporary enjoyment of automobiles will be deductible up to an amount not exceeding $200.00, In addition to complying with the requirements for the deduction of cars, the second part of Article 36 of this Law is strictly indispensable for the activity of the taxpayer. The provisions of this paragraph shall not be applicable for lessor, provided that they are intended exclusively for the lease for the entire period in which they are granted their use or temporary enjoyment.

XIV.       The losses arising from the disposal, as well as by chance or force majeure, of the assets whose investment is not deductible in accordance with the provisions of this Law.

Dealing with aircraft, losses arising from their disposal, as well as by chance or force majeure, will only be deductible in the proportional part of the the original amount of the investment could be deducted. The loss shall be determined in accordance with Article 31 of this Law.

XV.        The payments for the value added tax or the excise duty on production and services, which the taxpayer would have made and which he would have transferred to him. The provisions of this fraction shall not apply where the taxpayer is not entitled to credit those taxes which have been transferred to him or which he paid on the basis of the importation of goods or services, corresponding to deductible expenses or investments in the terms of this Act.

The value added tax and the excise duty on production and services, which would have been transferred to the taxpayer or the tax payer, will not be deductible. would have paid on the basis of the importation of goods or services, where the eogation that gave rise to the shipment or payment is not deductible in the terms of this Law.

XVI.       The losses arising from the merger, the reduction of capital or the liquidation of companies, in which the taxpayer would have acquired shares, social parts or certificates of equity from the national companies of credit.

XVII. The losses arising from the disposal of shares and other securities whose performance is not of interest in the terms of Article 8 of this Law. Financial losses arising from financial transactions arising from capital relating to shares or stock indices shall also not be deductible.

The losses referred to in the preceding paragraph may only be deducted against the amount of the gains that, if any, the same taxpayer obtains in the exercise or the next 10 in the disposal of shares and other securities whose performance is not interest in the terms of Article 8 of this Act, or in financial transactions derived from capital relating to shares or indices stock. These losses shall not exceed the amount of such gains.

The losses shall be updated for the period from the month in which they occurred and up to the month of the end of the same financial year. The share of losses not deducted in a financial year shall be updated for the period from the month of the end of the financial year in which it was last updated and until the last month of the immediate financial year preceding that in which it was deduce.

To be able to deduct losses under this fraction, taxpayers must comply with the following:

a) Dealing with actions that are placed between the large investor public, the loss shall be determined by making the adjustments referred to in Article 22 of the this Law and considering the following:

1. proven acquisition cost, the price at which the transaction was made, provided that the acquisition was made on the Stock Exchange terms of the Securities Market Act. If the acquisition was made outside of the aforementioned Exchange, the lower cost of the transaction price and the average quote on the Stock Exchange above mentioned on the day on which they were acquired will be considered as such cost.

2. Income obtained, the one that is obtained from the transaction provided that they are in the Stock Exchange concessioned in the terms of the Law of the Stock Market. If the disposal was made out of that stock exchange, the largest income between the price of the transaction and the average price on the aforementioned Stock Exchange of the day on which they were placed shall be considered as income.

b) Dealing with social parts and actions other than those mentioned in the preceding paragraph, the loss shall be determined by making the adjustments referred to in paragraph 1. Article 22 of this Law and considering as income obtained the one that is greater between the agreed transaction and the sale price of the shares determined in accordance with the methodology set out in Articles 179 and 180 of this Law Law.

When the transaction is carried out with and between related parties, a study on the determination of the sale price of the shares in the terms of Articles 179 and 180 of this Law and considering the elements contained in section I (e) of Section 179 of this Law.

(c) When the securities are treated as securities referred to in the preceding subparagraphs of this fraction, provided that in the case of those referred to in point (a) acquire or dispose of a Securities Exchange in the terms of the Securities Market Act, the acquirer, in any event, and the enajenor, when loss, shall submit notice within ten days of the date of the In the case of the sale price of the shares referred to in Article 1 (2) of the last paragraph of the previous paragraph.

d) In the case of securities other than those mentioned in the preceding points of this article, authorization must be sought from the authority tax to deduce the loss. The authorization referred to in this paragraph shall not be necessary in the case of institutions that make up the financial system.

XVIII.     The expenses that are incurred abroad in proportion to those who are not income tax payers in the terms of Titles II or IV of this Law.

XIX. The losses incurred in the derivative financial transactions and in the transactions referred to in Article 21 of this Law, when conclude with natural or moral persons resident in Mexico or abroad, who are parties related to the terms of Article 179 of this Law, where the agreed terms do not correspond to those that have been agreed with or between parties Independent in comparable operations.

XX.        91.5% of the consumption in restaurants. In order for the difference to be deducted, the payment must be made invariably by credit card, debit card or service card, or through the electronic purses which the Tax Administration Service authorizes. It shall be 100% deductible for the consumption in restaurants meeting the requirements of the V-fraction of this Article without exceeding the limits laid down in that fraction. In no case will we consume them in bars.

XXI. Expenses in canteens that are not available to all workers in the company and even if they are, they exceed an amount equivalent to a general daily minimum wage in the geographical area of the taxpayer for each worker who makes use of the same and for each day on which the service is provided, added to the recovery fees paid by the worker for this concept.

The limit set by this fraction does not include expenses related to the provision of the dining room service such as the maintenance of laboratories or specialists who study the quality and suitability of the food served in the canteens referred to in the preceding paragraph.

XXII.      Payments for customs services, other than the fees of customs agents and the expenses incurred by such agents or the moral person established by such customs agents in the terms of the Customs Law.

XXIII.     Payments made to persons, entities, trusts, joint ventures, investment funds, as well as any other legal figure, whose income is subject to preferential tax regimes, unless they prove that the price or the amount of the consideration is equal to the amount that would have been agreed by unrelated parties in comparable transactions except as provided for in the XXXI fraction of this article.

XXIV.    The payments of initial amounts for the right to acquire or sell, goods, foreign exchange, shares or other securities that do not qualify in recognized markets, in accordance with the provisions of Article 16-C of the Fiscal Code of the Federation, and which would not have been exercised, provided that they are contracting parties which are related in the terms of Article 179 of this Law.

XXV.     The refund made by the borrower in an amount equivalent to the property rights of the securities received on loan, when such rights are collected by the borrowers of the securities.

XXVI.    The amounts which are involved in the utility of the taxpayer or are conditional upon the taxpayer being obtained, whether they correspond to workers, to members of the board of directors, to obligationists or to others.

XXVII.   The interest arising from the amount of the taxpayer's debts exceeding three times its accounting capital arising from debts incurred by related parties residing abroad in the terms of Article 179 of this Law.

To determine the amount of the debts exceeding the limit set in the previous paragraph, the average annual balance of all the debts of the a taxpayer who accrues interest on his or her charge, the amount resulting from multiplying by three the ratio that is obtained from dividing the sum of the accounting capital by two to the beginning and end of the financial year.

When the average annual balance of taxpayer debts contracted with related parties resident abroad is less than the excess amount of the debts referred to in the preceding paragraph shall not be deductible in full the interest accrued on those debts. Where the annual average balance of the debts incurred by related parties resident abroad is greater than the excess amount referred to above, the interest accrued on those debts incurred by related parties shall not be deductible. resident abroad, only for the amount that is to be multiplied by those interests by the factor that is obtained from dividing the excess amount between that balance.

For the purposes of the above two paragraphs, the average annual balance of all taxpayer's debts that come into his or her charge is determined by dividing the sum of the balances of those debts to the last day of each of the months of the financial year, between the number of months of the financial year, and the average annual balance of the debts incurred by related parties resident abroad determines in the same way, considering the balances of these last debts to the last day of each of the months of the year.

Taxpayers may choose to consider as the accounting capital of the financial year, for the purposes of determining the amount of their debts, the amount which results from adding the initial and final balances of the financial year in question to its capital accounts, net tax utility and reinvested net tax utility and dividing the result of that sum between two. Those who choose this option shall continue to apply it for a period not less than five years from the time of their choice. Taxpayers who do not apply the financial reporting rules in the determination of their accounting capital shall consider as accounting capital for the purposes of this fraction, the integrated capital in the form described in this paragraph.

shall not be included in the interest bearing debts of the taxpayer for the calculation of the amount in excess of them to the triple of its capital the accounting system, contracted by the members of the financial system in carrying out the operations of their object and the contracted ones for the construction, operation or maintenance of productive infrastructure linked to strategic areas for the country.

The limit of the triple of the accounting capital that determines the amount of the debts to which it relates this fraction could be extended in cases where the taxpayer finds that the activity they carry out requires in itself the highest leverage and they obtain resolution on the subject in the terms of Article 34-A of the Tax Code of the Federation.

Regardless of what is foreseen in this fraction will be in accordance with Articles 11 and 179 of the This Act.

XXVIII. The advances for the acquisitions of goods, raw materials, semi-finished and finished products or for expenditure directly or indirectly related to the production or supply of services referred to in Article 39 of the This Law. Such advances shall not be part of the cost of the sold referred to in Article 25 (II) of this Law.

For the purposes of this fraction, the total amount of acquisitions or expenses shall be deducted from the The terms of Section III of Title II of this Law, provided that the tax voucher is provided to cover the entire operation for which the advance was made.

XXIX. The payments made by the taxpayer when they are also deductible for a party Resident in Mexico or abroad.

The provisions of this fraction shall not apply where the related party deduces the payment made by the the taxpayer, accumulates the income generated by the taxpayer either in the same tax year or in the next one.

XXX. Payments that are in turn exempt income for the worker, up to the amount that results from apply the factor of 0.53 to the amount of such payments. The factor referred to in this paragraph shall be 0.47 where the benefits granted by the taxpayer in favour of its employees, which in turn are exempt income for those workers, in the financial year in question, shall not be reduced. in respect of those granted in the previous immediate fiscal year.

XXXI.    Any payment that complies with subparagraph (a), which is also carried out by any of the concepts mentioned in point (b) and which is found in any of the assumptions of paragraph (c):

a) That the payment be made to a foreign entity that controls or is controlled by the taxpayer.

Control shall be understood when one of the parties has on the other the effective control or the control of the administration, to the extent that it may decide the timing of distribution or distribution of income, profits or dividends, either directly or by person.

b) The payment is made by any of the following concepts:

1. Interest defined in accordance with Article 166 of this Act.

2.      Royalties or technical assistance. Royalties shall also be considered when the goods or rights referred to in Article 15 -B of the Tax Code of the Federation are put in place, provided that such disposal is conditioned on the use, disposition or productivity thereof. property or rights.

c) That is in any of the following assumptions:

1.      That the foreign entity that perceives the payment is deemed transparent in terms of Article 176 of this Law. This number shall not apply to the extent and to the extent that the shareholders or associates of the transparent foreign entity are subject to an income tax on income received through that foreign entity, and that the payment made by the taxpayer is equal to that which has been agreed by independent parties in comparable transactions.

2. That the payment is considered non-existent for tax purposes in the country or territory where the foreign entity.

3. That such foreign entity does not consider payment as taxable income under the provisions taxes that apply to you.

For the purposes of this subparagraph (c), a payment includes the accrual of an amount in favor of any person and, when the context so requires, any part of a payment.

The non-deductible concepts referred to in this Law must be considered in the exercise in which the erogation is carried out and not in that exercise in which they are part of the cost of the sold.

Article 29. Reservations for pension funds or personal retirements, complementary to those established by the Social Security and seniority premiums Act, will be adjusted to the following rules:

I. You should be created and calculated in terms and with the requirements set out in the Rules of Procedure and spread evenly over ten years. Such calculation shall be carried out each year in the month in which the reserve was established.

II. The reserve shall be invested at least 30% in securities by the Federal Government entered in the National Securities Register or in shares of investment companies in debt instruments. The difference shall be invested in securities approved by the National Banking and Securities Commission as the object of investment in the technical reserves of insurance institutions, or in the acquisition or construction and sale of workers ' houses. of the taxpayer who has the characteristics of housing of social interest, or in loans for the same purposes, in accordance with the regulatory provisions, or in certificates of participation issued by the trust institutions in respect of of the trusts referred to in Article 188 of this Law, provided that in this the total investment does not exceed 10% of the reserve referred to in this Article.

Investments which, where applicable, are made in securities issued by the company itself or by undertakings which are considered as related parties, may not exceed the 10 percent of the total amount of the reserve and provided that it is securities approved by the National Banking and Securities Commission in the terms of the preceding paragraph.

For the purposes of the preceding paragraph, two or more persons are not considered to be related parties, where the direct or indirect participation of one in the capital of the other does not exceed 10% of the total subscribed capital and provided that it is not directly or indirectly involved in the administration or control of the capital.

III. The assets that form the fund must be assigned in an irrevocable trust, in an institution of credit authorized to operate in the Republic, or managed by institutions or mutual insurance companies, by stock exchange houses, investment company operators or by the management of retirement funds, with the grant or authorization to operate in the country, in accordance with the rules general to dictate the Tax Administration Service. The returns to be obtained on the occasion of the investment are part of the fund and must remain in the irrevocable trust; only the assets and returns of the investment can be allocated for the purposes for which the fund was created.

IV. The investments that constitute the fund, shall be valued each year at market price, in the month in which the reserve was constituted, except for investments in loans for the acquisition or construction of housing of social interest, in the latter case the insolute balance of the loan granted shall be considered.

V. Contributions may not be deducted where the value of the fund is sufficient to meet the obligations established under the pension scheme or retirements.

VI. The taxpayer may only dispose of the goods and securities referred to in section II of this Article for the payment of pensions or Retirement and seniority bonuses to staff. If you dispute them or their returns, for various purposes, it shall cover the respective amount imposed on the levy set out in Article 9 of this Act.

The provisions of fractions II and III of this article will not apply if the fund is managed by a fund manager for the withdrawal and the resources of the fund are invested in a company Specialized investment of retirement funds.

Article 30. Taxpayers who perform works consisting of real estate developments or batch fractionations, those who enter into real estate or asset-making contracts In the case of a long process of manufacture and the service providers of the timeshare system, they may deduct the estimated costs relating to the direct and indirect costs of such works or the provision of the service, in the exercises in which they obtain the income derived from them, rather than the deductions provided for in Articles 19 and 25 of this Law, which correspond to each of the works or to the provision of the service, mentioned. The estimated fees shall be determined for each work or property resulting from the revenue from the provision of services referred to in this Article, by multiplying the cumulative revenue for each financial year resulting from the work or of the provision of the service, by the factor of total deduction resulting from dividing the sum of the direct and indirect costs estimated at the beginning of the financial year, or of the work or the provision of the service concerned, between the total income which corresponds to that estimate on the same date, as provided for in this paragraph.

Not to be considered within the estimate of the direct and indirect costs referred to in the preceding paragraph, the deduction of investments and remuneration for the provision of personal services subordinated, directly related to the production or provision of services, which shall be deducted in accordance with the provisions of Section III of this Chapter neither the operating nor financial expenses, which shall be deducted in the terms of the established in this Law. Taxpayers who are engaged in the provision of the timeshare tourism service may consider, within the estimate of direct and indirect costs, the deduction of the investments corresponding to the real estate for the purposes of the provision of such services, in the terms of Article 31 of this Law.

At the end of each financial year, taxpayers shall calculate the total deduction factor referred to in the first paragraph of this Article for each work or property from which the income is derived. for the provision of timeshare services, as the case may be, with the data they have on that date. This factor shall be compared at the end of each financial year with the factor used in the exercise itself and in the previous financial years, corresponding to the work or the provision of the service concerned. If the comparison is that the deduction factor corresponding to the end of the financial year concerned is less than any of the above, the taxpayer shall submit additional declarations using this deduction factor. less, the amount of the estimated amounts deducted in each of the financial years concerned must be amended.

If of the comparison referred to in the preceding paragraph, the total deduction factor at the end of the financial year is less than 5% to that which was determined in the year itself or in the above, the corresponding surcharges shall be paid, where appropriate.

In the year in which the revenue relating to the work or the service concerned is completed, the taxpayer shall compare the fees made for the work or the service concerned. direct and indirect costs referred to in the first paragraph of this Article, without considering, where appropriate, those referred to in the second paragraph of this Article, during the period elapsed since the beginning of the work or the provision of the service until the year in which the revenue is accumulated, against the total of the estimates deducted in the same period in the terms of this Article, which correspond in both cases to the same work or property from which the income is derived from the provision of the service. In order to carry out this comparison, the taxpayer shall update the estimated and the total costs incurred in each financial year, from the last month of the year in which it was deducted or in which it was carried out, as the case may be, and until the last month of the first half of the financial year in which the revenue relating to the work or the provision of the time-sharing system is completed. The service providers of the timeshare system shall consider the amounts paid by the investments corresponding to the real estate of which the revenue is derived from the provision of those services, the amounts original of the investments to be checked with the documentation meeting the requirements of the tax provisions.

If from the comparison referred to in the preceding paragraph, it turns out that the total of the estimated updated erogations deducted exceeds the updated ones, the difference will be accumulated to the income the taxpayer in the financial year in which the income relating to the work or the provision of the service in question is completed.

For the purposes of the above two paragraphs, in the case of the provision of the timeshare service, the revenue shall be deemed to be terminated relating to the provision of the service, in the year in which any of the following cases occur: 90% of the payment or the agreed consideration would have been received, or five years after the start of the work; or the provision of the service referred to in this Article.

If of the comparison referred to in the fifth paragraph of this Article, it turns out that the total of the estimated erogations deducted exceeds by more than 5% those made, both updated, on the surplus the surcharges corresponding from the day on which the statement of the financial year in which the estimated fees were deducted shall be calculated. These surcharges shall be entered in conjunction with the declaration in question.

Taxpayers who exercise the option specified in this Article must submit notice to the tax authorities, in which they express that they opt for the provisions of this Article, for each of the works or by the building of which the revenue is derived from the provision of the service, within 15 days of the start of the work or the conclusion of the contract, as appropriate. Once this option is exercised, it cannot be changed. The tax payers must also present the information which, by means of general rules, establishes the Tax Administration Service.

SECTION II

OF INVESTMENTS

Article 31. Investments may be deducted only through the application, in each financial year, of the maximum amounts authorized by this Law, on the original amount of the investment, with the limitations on deductions that, if applicable, Law. In the case of irregular periods, the corresponding deduction shall be made in the percentage representing the number of full months of the financial year in which the goods have been used by the taxpayer for 12 months. When the good is started to be used after the start of the exercise and where the deduction is completed, the deduction will be made with the same rules as apply for irregular exercises.

The original amount of the investment comprises, in addition to the price of the good, the taxes actually paid on the occasion of the acquisition or importation of the same except the value added tax, thus such as fees for the concept of rights, compensatory fees, freight, transportation, transportation, insurance against transportation risks, handling, commissions on purchases, and fees to customs agents. In the case of automobile investments, the original investment amount also includes the amount of investments in armor equipment.

Where the goods are acquired on the basis of merger or division of companies, the date of acquisition shall be deemed to have been the date of acquisition of the merged company or the company.

The taxpayer will be able to apply for hundreds of minors to those authorized by this Law. In this case, the chosen percentage shall be compulsory and may be changed, without exceeding the maximum authorized. In the case of the second and subsequent changes, it must be at least five years after the last change; when the change is to be made before that deadline, the requirements laid down in the Regulation must be complied with. this Act.

Investments shall begin to be deducted, at the choice of the taxpayer, from the year in which the use of the goods is initiated or from the following year. The taxpayer may not initiate the deduction of investments for tax purposes, as soon as the time limits referred to in this paragraph are initiated. In the latter case, you may do so later, losing the right to deduct the amounts corresponding to the exercises since you were able to make the deduction under this article and until you start the deduction. applying the maximum of hundreds authorised by this Law.

When the taxpayer alienates the goods or when they cease to be useful to obtain the income, it will deduct, in the exercise in which this occurs, the part not yet deducted. In the case where the goods are no longer useful for obtaining the income, the taxpayer shall maintain a weight in his records without deduction. The provisions of this paragraph do not apply to the cases referred to in the penultimate and last paragraphs of this article.

Taxpayers will adjust the deduction determined in the terms of the first and sixth paragraphs of this Article by multiplying it by the update factor corresponding to the period from the month in which the property was acquired and until the last month of the first half of the period in which the property was used during the financial year for which the deduction is made.

Where the number of months covered by the period in which the good has been used in the financial year is to be imped, shall be considered as the last month of the first half of that period in the preceding month. to which the half of the period corresponds.

To determine the gain from the disposal of goods whose investment is partially deductible in the terms of Sections II and III of Article 36 of this Law, the difference between the the original amount of the deductible investment decreased by the deductions made on that amount and the price on which the goods are sold.

Dealing with goods whose investment is not deductible in the terms of Sections II, III and IV of Article 36 of this Law, the price obtained by their disposal shall be considered as a gain.

Article 32. For the purposes of this Act, fixed assets, deferred charges and charges, and relocations made in pre-operative periods are considered to be investments in accordance with the The following concepts:

Fixed assets is the set of tangible assets that are used by taxpayers to carry out their activities and which are demeritated by the use of the taxpayer and over time. The acquisition or manufacture of these goods shall always be intended to be used for the development of the activities of the taxpayer, and not to be used in the normal course of their operations.

Deferred Expenses are intangible assets represented by assets or rights that allow to reduce operating costs, improve the quality or acceptance of a product, use, enjoy or exploit a good, by a limited period, less than the duration of the activity of the moral person. Also considered as deferred expenses are intangible assets that allow the exploitation of public domain assets or the provision of a concessionary public service.

Deferred charges are those that meet the requirements set forth in the preceding paragraph, except those relating to the exploitation of public domain goods or the provision of a concessionary public service, but whose benefit is for an unlimited period that will depend on the duration of the activity of the moral person.

Erogations performed in pre-operative periods, are those that aim for research and development, related to the design, elaboration, improvement, packaging or distribution of a product, as well as the provision of a service, provided that the services are carried out before the taxpayer enacts their products or provides their services in a constant manner. In the case of extractive industries, these are those related to exploration for the location and quantification of new fields that can be exploited.

Article 33. For hundreds of authorized maximums for deferred charges and charges, as well as for erogations made in pre-operative periods, are as follows:

I.           5% for deferred charges.

II.          10% for erogations made in pre-operational periods.

III.         15% for royalties, for technical assistance, as well as for other deferred expenses, with the exception of those identified in section IV of this Article.

IV.         In the case of intangible assets that permit the exploitation of public domain assets or the provision of a concessionary public service, the maximum percentage shall be calculated by dividing the unit between the number of years for which the unit is grant, the ratio thus obtained shall be multiplied by one hundred and the product shall be expressed in percent.

In the event that the benefit of the investments referred to in fractions II and III of this Article is made in the same financial year in which the application was made, the deduction may be made in the all in that exercise.

Article 34. For hundreds of authorized maximums, dealing with fixed assets by type of good are as follows:

I.           Trying to build:

a) 10% for buildings declared as archaeological, artistic, historical or heritage monuments, in accordance with the Federal Law on Monuments and Zones Archaeological, Artistic and Historical, with the certificate of restoration issued by the National Institute of Anthropology and History or the National Institute of Fine Arts.

b) 5% in other cases.

II.          Dealing with railways:

a) 3% for fuel supply pumps to trains.

b) 5% for railways.

c) 6% for rail cars, locomotives, armons and self-armons.

d) 7% for track-levelling machinery, disavowers, track-rails, motor cats for lifting the track, removers, inserters and drilling machines Sleepers.

e) 10% for communication, signaling, and telemando equipment.

III.         10% for furniture and office equipment.

IV.         6% for boats.

V.          Dealing with aircraft:

a) 25% for those dedicated to agricultural aerofumigation.

b) 10% for others.

VI.         25% for cars, buses, truckloads, tractor-trailers, forklifts and trailers.

VII.        30% for desktop and laptop personal computers; servers; printers, optical readers, grainers, barcode readers, digitizers, external storage units, and computer network hubs.

VIII.       35% for dice, dies, moulds, matrices and tooling.

IX.         100% for semovents and vegetables.

X.          Dealing with telephone communications:

a) 5% for transmission towers and cables, except for optical fiber.

b) 8% for radio systems, including transmission and handling equipment using radio spectrum, such as the microwave radio transmission digital or analog, microwave towers and waveguides.

c) 10% for equipment used in transmission, such as internal plant circuits that are not part of the switch and whose functions are focused on The trunks that arrive at the telephone exchange, include multiplexers, concentrator and router equipment.

d) 25% for telephone central equipment intended for switching of technology calls other than electromechanical.

e) 10% for others.

XI.         Dealing with satellite communications:

a) 8% for the satellite segment in space, including the satellite's main body, transponders, antennas for transmission and reception digital and analog communications, and satellite monitoring equipment.

b) 10% for ground-based satellite equipment, including antennas for the transmission and reception of digital and analog communications and equipment for the Satellite monitoring.

XII.        100% for adaptations to installations involving additions or improvements to the fixed asset, provided that such adaptations are intended to facilitate the persons with disabilities referred to in Article 186 of the Law, access and use of taxpayer facilities.

XIII. 100% for machinery and equipment for power generation from renewable sources or efficient electricity cogeneration systems.

For the purposes of the preceding paragraph, renewable sources are those which by their nature or by appropriate use are considered inexhaustible, such as solar energy in all its forms; wind energy; both kinetic and potential hydraulic energy of any natural or artificial body of water; the energy of the oceans in its various forms; geothermal energy; and energy from biomass or waste. In addition, the successive conversion of energy from renewable sources into other forms of energy is considered to be generation.

The provisions of this fraction shall apply provided that the machinery and equipment are in operation or operation for a minimum period of 5 years (a) the following shall be the case in which the deduction is made, except in the cases referred to in Article 37 of this Law. Taxpayers who fail to comply with the minimum time limit set out in this paragraph, shall, where appropriate, cover the corresponding tax for the difference between the amount deducted in accordance with this fraction and the amount to be deducted in each exercise in the terms of this Article or Article 35 of this Law, if the deduction of 100% has not been applied. For these purposes, the taxpayer shall submit additional declarations for each of the financial years concerned, at the latest within the month following that in which the taxpayer is not in compliance with the time limit laid down in this fraction. cover the surcharges and the corresponding update, from the date on which the deduction was made and up to the last day on which the machinery and equipment operated or operated.

Article 35. For machinery and equipment other than those mentioned in the previous article, they shall be applied according to the activity in which they are used, the following hundreds:

I.           5% in the generation, driving, processing and distribution of electricity; in the milling of grains; in the production of sugar and its derivatives; in the manufacture of edible oils; in sea, river and lake transport.

II.          6% in the production of metal obtained in the first process; in the manufacture of tobacco products and natural coal derivatives.

III.         7% in the manufacture of pulp, paper and similar products; in the extraction and processing of crude oil and natural gas.

IV.         8% in the manufacture of motor vehicles and their parts; in the construction of railways and vessels; in the manufacture of metal products, machinery and professional and scientific instruments; in the manufacture of products food and beverages, except grains, sugar, edible oils and derivatives.

V.          9% in the skin tanning and the manufacture of skin articles; in the manufacture of chemicals, petrochemicals and pharmacobiologics; in the manufacture of rubber and plastic products; in printing and graphic publishing.

VI.         10% on electric transport.

VII.        11% in the manufacture, finish, dyeing and stamping of textile products, as well as garments for clothing.

VIII.       12% in the mining industry; in the construction of aircraft and in the land transport of cargo and passengers. The provisions of this fraction shall not apply to the machinery and equipment specified in section II of this Article.

IX.         16% in air transport; in the transmission of communication services provided by telegraphs and by radio and television stations.

X.          20% in restaurants.

XI.         25% in the construction industry; in agriculture, livestock, forestry and fisheries activities.

XII.        35% for those destined directly for research into new products or technology development in the country.

XIII.       50% in the manufacture, assembly and transformation of magnetic components for hard drives and electronic cards for the computer industry.

XIV.       10% in other activities not specified in this article.

In the event that the taxpayer engages in two or more of the activities mentioned in this article, the percentage that corresponds to the activity in which the taxpayer has earned the most income in the previous immediate exercise.

Article 36. The deduction of investments will be subject to the following rules:

I.           Repairs, as well as adaptations to facilities will be considered investments whenever they involve additions or improvements to the fixed asset.

In no case shall investments be considered as expenses for conservation, maintenance and repair, which are eroded in order to maintain the good in question under conditions of operation.

II.          Investments in cars will only be deductible up to $130,000.00.

The provisions of this fraction shall not apply to taxpayers whose activity consists in the granting of temporary use or enjoyment of motor vehicles, provided that they are intended exclusively for such activity.

III.         The investments in rooms and canteens, which by their nature are not available to all the workers of the company, as well as in planes and boats that do not have the concession or permission of the Federal Government to be Commercially exploited, they will only be deductible in cases that meet the requirements laid down in the Regulation of this Law. In the case of aeroplanes, the deduction shall be calculated as the original maximum amount of the investment, an amount equal to $8 ' 600,000.00.

For taxpayers whose preponderant activity consists in the granting of the use or temporary enjoyment of aeroplanes or automobiles, they may carry out the total deduction of the original amount of the investment from the aircraft or car concerned, except where such taxpayers grant the use or temporary enjoyment of aircraft or cars to another taxpayer, where any of them, or their partners or shareholders, whether they are partners or shareholders of the other, or there is a relationship that in fact allows to one of them exercise a preponderant influence on the operations of the other, in which case the deduction will be determined in the terms of the first paragraph of this fraction, for the case of airplanes and in the terms of the fraction II of this article for the case of cars.

Investments in recreational homes will in no case be deductible.

Dealing with moral persons who have chosen to be taxed in the terms of Chapter VI of Title II of this Law, they will not be able to apply the deduction to refers to this fraction in the case of investments in aircraft that do not have the concession or permission of the Federal Government to be commercially exploited.

IV.         In cases of assets acquired by merger or division of companies, the securities subject to deduction shall not be higher than the securities to be deducted in the merged or splinter company, as appropriate.

V.          The commissions and expenses related to the issuance of obligations or any other credit title, placed among the large investor public, or any other title of credit of those referred to in Article 8 of this Law, shall be shall annually deduct in proportion to the payments made in order to redeem those obligations or securities, in each financial year. Where the obligations and the securities referred to in this section are redeemed by a single payment, the fees and charges shall be deducted in equal shares for the periods of the financial years until the payment is made.

VI.         Buildings, installations or permanent improvements in tangible fixed assets, owned by third parties, which in accordance with the respective lease or concession contracts are to the benefit of the owner and have been made from the date of conclusion of the abovementioned contracts, they shall be deducted in the terms of this Section. Where the termination of the contract occurs without the deductible investments having been fiscally redeemed, the value for redemption may be deducted in the statement of the respective year.

VII.        In the case of royalties, the deduction may be made in the terms of section III of Article 33 of this Law, only when they have actually been paid.

Article 37. The taxpayer's loss of property by chance or force majeure, which is not reflected in the inventory, will be deductible in the financial year in which they occur. The loss shall be equal to the amount to be deducted from the date on which it is incurred. The amount that is recovered will be accumulated in the terms of Article 18 of this Law.

When individually identifiable fixed assets are lost on a fortuitous basis or force majeure or are no longer useful, the amount outstanding to be deducted from such assets shall be applied as first assets that were acquired are the first to be lost.

When the taxpayer reinvests the amount recovered in the acquisition of goods of a similar nature to which it lost, or, to redeem liabilities for the acquisition of such goods, it will only accumulate the part of the recovered amount not reinvested or not used to redeem liabilities. The reinvested amount that comes from the recovery can only be deducted by applying the percent authorized by this Law on the original amount of the investment of the good that was lost and up to the amount of the amount that was to be deducted at the date of the loss.

If the taxpayer invests additional amounts to the recovered, it will consider these as a different investment.

The reinvestment referred to in this precept shall be made within the following twelve months after the recovery is obtained. Where the quantities recovered are not reinvested or are not used to redeem liabilities within that period, they shall be cumulated with the other income obtained in the financial year in which the time limit is concluded.

Taxpayers will be able to request authorization from the tax authorities, so that the deadline set in the previous paragraph can be extended for another equal period.

The recovered amount not reinvested within the period specified in the fifth paragraph of this Article shall be adjusted by multiplying it by the update factor corresponding to the period from month to that the recovery was obtained and up to the month in which it is accumulated.

Where the number of months covered by the period in which the good has been used in the financial year is to be imped, shall be considered as the last month of the first half of that period in the preceding month. to which the half of the period corresponds.

Article 38. In the case of leasing contracts, the lessee shall consider as the original amount of the investment the amount that has been agreed as the value of the good in the respective contract.

When any of your options are used in the leasing contracts, the following shall be observed for the deduction of investments related to such contracts:

I.           If you choose to transfer ownership of the object of the contract by payment of a given amount, or to extend the contract for a certain period of time, the amount of the option will be considered to be in addition to the original amount of the investment, so it will be deducted in the percent that will result from dividing the amount of the option between the number of years that are missing in order to finish deducting the original amount of the investment.

II.          If participation is obtained by the disposal of the goods to third parties, the difference between the payments made and the amounts already deducted, minus the income obtained by the participation in the disposal to third parties.

SECTION III

OF THE COST OF THE SOLD

Article 39. The cost of the goods being sold, as well as the cost of the final inventory of the financial year, shall be determined in accordance with the cost-absorbing system on the basis of historical or predetermined costs. In any event, the cost shall be deducted in the year in which the revenue accruing from the disposal of the goods in question is accumulated.

Taxpayers who engage in commercial activities that consist of the acquisition and disposal of goods shall only consider within the cost of the following:

(a) The amount of the purchases of goods, decreased with the amount of refunds, discounts and bonuses, on the same, made in the exercise.

b) The expenses incurred to acquire and leave the goods in conditions of being alienated.

Contributors who perform activities other than those mentioned in the second paragraph of this article will only consider within the cost of the following:

a) Procurement of raw materials, semi-finished products or finished products, decreased with returns, discounts and bonuses, on the same, carried out in the financial year.

b) Remuneration for the provision of subordinate personal services, directly related to the production or provision of services.

c) Net expense of discounts, bonuses, or returns, directly related to the production or delivery of services.

d) The deduction of investments directly related to the production of goods or the provision of services, calculated in accordance with Section II, of Chapter II of Title II of this Law.

When the concepts referred to in the points of the previous paragraph keep an indirect relation with the production, they will be part of the cost in proportion to the importance they have in the production.

In order to determine the cost of the financial year, the goods shall be excluded from the goods not in the same way, as well as that of the production in process, at the end of the financial year in question.

Overseas residents with permanent establishment in the country will determine the cost of the goods as set out in this Law. In the case of the cost of the goods received from the central office or another establishment of the taxpayer located abroad, they shall be in accordance with Article 27, fraction XIV of this Law.

To determine the cost of the merchandise sold, the same procedure must be applied for each financial year for a minimum period of five years, and can only be varied in compliance with the requirements. to be established in the Regulation of this Law.

In no case will tax effects be given to the revaluation of the inventories or the cost of the sold.

Article 40. Taxpayers who enter financial leasing contracts and choose to accumulate as income from the financial year, the share of the price payable during the year, must deduct the cost of the sold in the proportion representing the income received in that financial year, in respect of the total of the payments agreed in the initial forced period, instead of deducting the total amount of the cost of the goods sold at the time the goods are sold.

Article 41. Taxpayers may opt for any of the inventory valuation methods outlined below:

I. First First Inputs (PEPS).

II. Cost identified.

III. Average cost.

IV. Detailed list.

When you choose to use the method referred to in the section I of this article, you must take each type of goods individually, without being able to carry it in a monetary form. In the terms set out in the Rules of Procedure, facilities may be established so as not to identify the percentages of deduction of the cost of purchases for each type of goods individually.

Taxpayers who have goods that can be identified by serial number and their cost exceeds $50,000.00, will only have to use the cost method identified.

For taxpayers who choose to use the detailed method, they will have to value their inventories at the reduced selling price with the gross profit margin they have in the financial year in accordance with the the procedure laid down in the Regulation of this Law. The option referred to in this paragraph does not release taxpayers from the obligation to carry the inventory control system referred to in Article 76 (XIV) of this Act.

Once the method is chosen in the terms of this article, the method must be used for a minimum period of five years. Where taxpayers for accounting purposes use a method other than those referred to in this Article, they may continue to use it to value their inventories for accounting purposes, provided that they bear a record of the difference in the cost of the accounting goods that exist between the valuation method used by the taxpayer for accounting purposes and the valuation method used in the terms of this article. The amount to be determined in the terms of this paragraph shall not be cumulative or deductible.

When a deduction is generated on the basis of a change in the inventory valuation method, the deduction must be decreased proportionally in the following five years.

Article 42. Where the cost of the goods is higher than the market price or replacement price, it may be considered appropriate to the following:

I.           The replacement, whether by acquisition or production, without exceeding the carrying value and is not less than the net of realization.

II.          The realization, which is the normal price of disposal minus the direct costs of disposal, provided that it is less than the replacement value.

III.         The net of realization, which is the equivalent to the normal price of disposal minus the direct costs of disposal and less the percentage of utility that is usually obtained in its realization, if it is superior to the value of replacement.

When the taxpayers dispose of the goods to a related party under the terms of Article 179 of this Law, any of the methods referred to in Sections I, II and III of the Act shall be used. Article 180 of the same.

Taxpayers who would have chosen to present an opinion of financial statements for tax purposes in terms of Article 32-A of the Tax Code of the Federation, or have been obliged to present the information statement on their tax situation in accordance with Article 32-H of the Code, they shall report in the opinion or the information declaration, as the case may be, the cost of the goods they considered in accordance with this Article, in the case of other contributors, must inform the statement of exercise.

Article 43. Where taxpayers, in the service provision, provide goods in the terms laid down in the second paragraph of Article 17 of the Tax Code of the Federation, they may only be deducted in the year in which they are accumulated. the income from the provision of the service, valued in accordance with any of the methods set out in Article 41 of this Law.

CHAPTER III

INFLATION ADJUSTMENT

Article 44. The moral persons shall determine, at the end of each financial year, the annual adjustment for inflation, as follows:

I.           They will determine the average annual balance of their debts and the average annual balance of their claims.

The average annual balance of claims or debts shall be the sum of the balances at the last day of each of the months of the financial year, divided by the number of months of the financial year. Interest on the last day of each month shall not be included in the balance on the last day of each month.

II.          When the average annual debt balance is greater than the average annual balance of the claims, the difference shall be multiplied by the annual adjustment factor and the result shall be the annual adjustment for cumulative inflation.

Where the average annual balance of the claims is greater than the average annual balance of the debts, the difference shall be multiplied by the annual adjustment factor and the result will be the annual adjustment for deductible inflation.

III.         The annual adjustment factor shall be that which is obtained from subtracting the unit to the ratio obtained from dividing the National Consumer Price Index for the last month of the financial year in question between the last month of the previous immediate exercise.

When the exercise is less than 12 months, the annual adjustment factor shall be the one that is obtained from subtracting the unit to the ratio that is obtained from dividing the Index National Consumer Price for the last month of the financial year in question between the said index of the month before the first month of the financial year in question.

Credits and debts, in foreign currency, will be valued at the parity that exists on the first day of the month.

Article 45. For the purposes of the foregoing Article, credit shall be deemed to be the right of a person who is a creditor to receive from another debtor an amount in number, among others: the credit rights acquired by the financial factoring companies, investments in shares of investment companies in debt instruments and the derivative financial transactions referred to in Article 20 (IX) of this Act.

Not considered credits for the purposes of the previous article:

I.           Those who are in charge of natural persons and do not come from their business activities, when they are in sight, within a period of less than one month or longer if they are charged before the month. They shall be deemed to be longer than one month if the recovery is effected after 30 calendar days from the date on which the claim was made.

II.          Those who are in charge of members or shareholders, associates or associates in the joint venture, who are natural persons or companies resident abroad, except in the latter case, are denominated in foreign currency and come from the export of goods or services.

Nor are any credits, which the trustee has in his favor with his or her trustees or trustees in the trust for which they are held business activities, which are natural persons or companies resident abroad, unless in the latter case they are denominated in foreign currency and come from the export of goods or services.

The provisions of this fraction shall not apply, in the case of credits granted by credit unions in charge of their shareholders or shareholders. only with its partners or shareholders.

III.         Those who are in charge of officials and employees, as well as the loans made to third parties referred to in Section VII of Article 27 of this Law.

IV.         Provisional tax payments, as well as fiscal stimulus.

V.          Any income whose accumulation is conditioned to its effective perception. The provisions of this fraction do not apply to income from leasing contracts for which the option provided for in Article 17, section III of this Law is exercised.

VI.         The shares, non-depreciable certificates of participation and certificates of deposit of goods and in general the titles of credit that represent the property of goods, the contributions to a joint association, as well as other securities securities whose returns are not considered to be of interest in the terms of Article 8 of this Act.

VII.        Cash in cash.

The credits deriving from the cumulative income, decreased by the amount of discounts and bonuses on the same, will be considered as credits for the purposes of this article, from the the date on which the corresponding revenue is accumulated and up to the date on which it is charged in cash, in goods, in services or, up to the date of its cancellation by non-performing persons. In the case of the cancellation of the transaction that gave rise to the credit, the portion of the annual adjustment for inflation corresponding to that credit shall be cancelled, in the terms established by the Regulation of this Law, provided that it is credit that have been considered for such adjustment.

For the purposes of this Article, the balances in favour by contributions shall be considered as credits from the day following that in which the corresponding declaration is presented and to the date in which they are compensated, credited or returned, as the case may be.

Article 46. For the purposes of Article 44 of this Law, debt shall be deemed to be any obligation in a number to be met, inter alia: those arising from leasing contracts, financial transactions arising from the refers to Article 20 (IX) of the same Article, the contributions for future capital increases and the contributions caused from the last day of the period to which they correspond and up to the day on which they are due.

They are also debts, liabilities and reserves of assets, liabilities or capital, which are or have been deductible. For these purposes, reserves are considered to be created or increased on a monthly basis and in the proportion representing the income of the month of total income in the year.

In no case shall the debts arising from non-deductible items be considered as debts in the terms of the fractions I, VIII and IX of Article 28 of this Law, as well as the amount of the debts exceeding the limit to referred to in the first paragraph of section XXVII of the same article.

For the purposes of Article 44 of this Law, debts shall be deemed to be incurred for the purchase of goods and services, for the purpose of obtaining the use or temporary enjoyment of goods or capital taken on a loan, when any of the following assumptions are given:

I.           Dealing with the acquisition of goods or services, as well as the acquisition of the use or temporary enjoyment of goods, when any of the assumptions provided for in Article 17 of this Law and the price or consideration are paid with after the date of the occurrence of the case in question.

II.          Dealing with capital taken on loan, when the capital is partially or fully received.

In the event of the cancellation of an operation from which a debt is derived, the portion of the annual adjustment for inflation corresponding to that debt shall be cancelled, in accordance with the terms of the this Act, provided that it is debts that would have been considered for such an adjustment.

CHAPTER IV

OF CREDIT, INSURANCE, AND TRUST INSTITUTIONS, GENERAL WAREHOUSE WAREHOUSES, FINANCIAL LEASING AND CREDIT UNIONS

Article 47. The general warehouses of deposit shall make the deductions referred to in this Title, within which they shall consider the creation or increase, carried out after revision of the National Banking and Securities Commission, of the reserve of contingency.

When, at the end of an exercise, the reserve referred to in this Article is decreased in relation to those incorporated in the preceding immediate financial year, the difference shall be accumulated as income in the exercise in which the decrease comes.

Article 48. The foreign establishments of the country's credit institutions shall pay the tax at the rate of 4.9% for the interest income they receive from the capital they place or invest in the country, or be paid by residents on national territory or foreign residents with permanent establishment in the country, without any deduction.

The tax referred to in the preceding paragraph shall be made available by the persons who make the interest payments referred to in this Article. Credit institutions may credit the withholding tax on the income tax in the statement of the financial year, provided that they have the record of retention. In no case will you proceed to request the return of the non-accredited amounts in the exercise.

Where interest has not been paid to the date of its enforceability, the retainer shall be obliged to find an amount equivalent to that which it should have retained on the date of enforceability.

Credit institutions shall accrue to their other income the interest referred to in this Article. Such institutions, for the purposes of the third paragraph of Article 77 of this Law, shall not subtract from the tax result the tax paid under this article.

When the person who pays the interest covers the tax on behalf of the establishment, the amount of the tax shall be considered to be of interest.

The tax referred to in this article shall not be caused by the interest collected by those establishments and which, if they were paid directly to a resident abroad, would be exempt from the payment of income tax in the terms of Article 166 of this Law.

Article 49. The credit institutions will be able to accumulate the income that is derived from the agreements with the Secretariat of Finance and Public Credit, in the terms of section III of article 32-B of the Fiscal Code of the Federation, at the time when they receive them in cash or in goods and in the amount actually received after the reductions provided for in those agreements have been made.

Credit institutions, to determine the annual adjustment for cumulative or deductible inflation, in the terms of Article 44 of this Law, will consider as credits, in addition to those mentioned in the 45 of the same, the appropriations mentioned in section I of that article.

Article 50. The insurance institutions shall make the deductions referred to in this Title, within which they shall consider the creation or increase, only of the current risk reserves, of obligations outstanding to comply with claims and maturities, as well as catastrophic risk reserves.

Insurance institutions authorized for the sale of pension insurance, arising from social security laws, in addition to making the deductions provided for in the preceding paragraph, may deduct the the creation or increase of the special mathematical reserve linked to the aforementioned insurance, as well as the other reserves provided for in the General Law on Mutual Insurance Institutions and Societies when they comply with the condition that any release is intended for the special fund of pension insurance, compliance with this last Law, in which the Federal Government participates as a trustee.

When, at the end of an exercise, the reserves referred to in this Article are reduced in relation to those incorporated in the preceding immediate financial year, the difference shall be accumulated as income in the exercise in which the decrease comes. In order to determine the decrease in reserves, the release of those reserves shall not be considered as intended for the special pension insurance fund referred to in the preceding paragraph.

Also deductible are the so-called dividends or interest that as a premium adjustment procedure pay or compensate the institutions to their policyholders, in accordance with the respective policies.

Article 51. Insurance institutions, for the purposes of Article 44 of this Law, shall additionally consider as credits for the purposes of the said article, the land and the shares that represent investments authorised to guarantee the deductible reserves in accordance with the previous Article, established by those institutions. For these purposes, the balances of the land and share accounts shall be considered on the last day of each month, without any update. When such goods are put in place, the original amount of the investment or the proven cost of acquiring them, as appropriate, will not be updated.

Article 52. The institutions of sureties shall make the deductions referred to in this Title, within which they shall consider the creation or increase, carried out after review of the National Insurance and Bonding Commission, of the following reservations:

a) The fianzas in effect.

b) The contingency.

When, at the end of an exercise, the reserves referred to in this Article are reduced in relation to those incorporated in the preceding immediate financial year, the difference shall be accumulated as income in the exercise in which the decrease comes.

Also deductible are the so-called dividends or interest that as a premium adjustment procedure pay or compensate the institutions to their policyholders, in accordance with the respective policies.

Article 53. Taxpayers who have acquired goods or rights by payment or by award, who are unable to keep them legally, cannot deduct them in accordance with Article 25 of this Law. In order to determine the gain or loss suffered in the disposal of the said goods or rights, they shall subtract from the income obtained by such disposal in the financial year in which the good or the right, the proven cost, are used for the acquisition, which may be adjusted by multiplying it by the updating factor corresponding to the period from the month in which the right or right was acquired by payment or by award and up to the immediate month before the date on which the right or right is issued to a third party, by whom it has received it in payment or by award. In the case of shares, the amount to be subtracted in the terms of this paragraph shall be the average cost per share to be determined in accordance with the provisions of Article 22 of this Law.

Article 54. The institutions that make up the financial system that make interest payments shall retain and find out the tax by applying the rate that the Congress of the Union establishes. for the financial year in question in the Law of Revenue of the Federation on the amount of capital that will give rise to the payment of interest, as a provisional payment. The withholding tax shall be entered before the authorized offices, no later than the 17th day of the immediate month following the one to which it corresponds, and proof of the amount of the payment of interest, as well as the tax, shall be issued. retained.

The retention referred to in the preceding paragraph shall not be made, in the case of:

I.           Interest to be paid to:

a) The Federation, federative entities, or municipalities.

b) Decentralized agencies whose activities are not preponderantly business, as well as those subject to budgetary control in terms of of the Federal Law on Budget and Accountability, as determined by the Tax Administration Service.

c) Legally recognized political parties or associations.

d) Moral persons authorized to receive deductible donations in the terms of this Act.

e) Investment companies specializing in retirement funds, pension funds, or supplementary staff retirements to which the Social Security Law and pension insurance companies authorized exclusively to operate pension insurance derived from social security laws in the form of lifetime income or survival insurance under such laws, thus as to the investment accounts or channels to be implemented on the basis of the personal plans for the withdrawal referred to in Article 151, fraction V of this Law.

f) Foreign states in cases of reciprocity.

II.          Interest to be paid between the Bank of Mexico, the institutions that make up the financial system, and the investment companies specialized in retirement funds. The provisions of this fraction shall not apply, in the case of interest arising from liabilities which are not borne by those institutions or companies, as well as when they act on behalf of third parties.

III.         Those that are paid to funds or trusts of economic promotion of the Federal Government.

IV.         The interest to be paid by financial intermediaries to pension funds or pension and seniority premiums, as constituted under the terms of Article 29 of this Law or those paid to investment companies in debt instruments that exclusively manage investments of such funds or group as investors exclusively to the Federation, to the federative entities, to the municipalities, to the decentralized agencies whose activities do not are preponderantly business, political parties and political associations legally recognized.

V.          The interest to be paid to savings funds and savings banks of workers or to moral persons constituted solely for the purpose of administering such funds or savings banks.

The provisions of the preceding paragraph shall apply only where the following is true:

a) That the funds and savings banks referred to in this fraction comply with the requirements that are set out in the Regulation of this Law and that the person who constitutes the fund or the savings fund or the moral person who is solely to administer the fund or the savings account in question has at the disposal of the tax authorities the documentation set out in that Regulation.

b) That the moral persons referred to in this section, no later than 15 February of each year, submit to the Tax Administration Service information on the amount of contributions made to the funds and savings banks they manage, as well as the nominal and actual interest paid, in the financial year in question.

The provisions of this fraction shall not apply to the interest paid to the moral persons referred to in this fraction for investments different from those that are made with the resources of the funds and savings banks of workers that they administer.

VI.         Interest to be paid to the investment companies referred to in Article 87 and the variable income referred to in Article 88 of this Law.

VII.        The gains in financial transactions derived from capital referred to the exchange rate of a currency held in the recognised markets referred to in Article 16-C (I) of the Fiscal Code of the European Union. Federation.

Article 55. The institutions that make up the financial system that pay the interest referred to in the previous article will have, in addition to the obligations established in other articles of this Law, the following:

I. Submit to the Tax Administration Service, no later than the 15th of February of each year, information on the name, Federal Register of Taxpayers, domicile of the taxpayer concerned and the nominal and real interest referred to in Article 134 of this Law, the nominal average interest rate and number of days of the investment, paid in the calendar year (i) the right of the person to whom he or she has been paid interest; independence from the provisions of Articles 192 and 295 of the Securities Market Act, 117 of the Credit Institutions Act and 55 of the Investment Companies Act.

The tax authorities will provide the necessary measures to ensure the confidentiality of the information to be provided in the terms of this fraction. Such information shall only be submitted in encryption and with the security measures previously agreed by the institutions of the financial system and the Tax Administration Service.

II.          Provide the persons to whom the payments are made, no later than 15 February of each year, stating the nominal amount and the actual amount of interest paid or, where applicable, the loss determined in accordance with the Article 134 of this Law, and the retentions effected, corresponding to the previous immediate exercise.

III.         Keep, in accordance with the provisions of the Tax Code of the Federation, the information related to the tax vouchers and the withholding of this tax.

IV. Provide annually at the latest by February 15, cash deposit information to be made on accounts opened in the name of the taxpayers in the institutions of the financial system, where the monthly amount accumulated by cash deposits held in all accounts of which the taxpayer is a holder in the same institution of the financial system exceeds of $15,000.00, as well as for all cash acquisitions of cheques box, in terms set by the Tax Administration Service by general rules.

For the purposes of this article, it is understood by cash deposits, deposits in national or foreign currency that are made in any type of account that natural or moral persons have on their behalf. name in the institutions of the financial system, as well as cash acquisitions of cash cheques. Cash deposits shall not be considered as cash deposits, which are carried out in favour of natural or moral persons by means of electronic transfers, account transfers, receivables or any other document or system agreed with institutions of the system financial in the terms of applicable laws, even if they are in charge of the same institution that receives them.

Article 56. The financial intermediaries involved in the disposal of shares made through the Mexican Stock Exchange, which is granted under the terms of the Securities Market Law, must inform the Tax Administration Service, no later than the 15th day of February of each year, in the form that the effect is established, the name, Federal Register of Taxpayers, domicile, as well as the data of the securities of shares made through the Mexican Stock Exchange concession in the terms of the Law of the Market of Securities, carried out in the year of the previous immediate calendar, which is requested in that form, in respect of all persons who have carried out actions.

CHAPTER V

OF LOSSES

Article 57. The tax loss will be obtained from the difference between the cumulative income of the year and the deductions authorized by this Law, when the amount of the latter is greater than the revenue. The result obtained will be increased, if any, with the participation of workers in the profits of the companies paid in the exercise in the terms of Article 123 of the Political Constitution of the United Mexican States.

The tax loss incurred in an exercise may be reduced from the tax utility of the following ten years until exhausted.

When the taxpayer does not decrease in an exercise the fiscal loss of previous years, being able to do so according to this article, it will lose the right to do so in subsequent years and up to for the quantity in which you may have done so.

For the purposes of this article, the amount of tax loss incurred in an exercise shall be updated by multiplying it by the updating factor corresponding to the period from the first month of the second half of the year in which it occurred and until the last month of the same financial year. The part of the tax loss of previous years already up to date to be applied against tax profits shall be updated by multiplying it by the updating factor corresponding to the period from the month in which it was updated. for the last time and until the last month of the first half of the year in which it will apply.

For the purposes of the preceding paragraph, where the number of months of the financial year in which the loss occurred is to go unpunished, it shall be considered as the first month of the second half, the immediate month after which the loss occurred. corresponds to half of the exercise.

The right to reduce tax losses is a personal contributor to the taxpayer who suffers and cannot be transmitted to another person or as a result of a merger.

In the case of a division of companies, the outstanding tax losses of tax profits must be divided between the breakaway and the divided companies in the proportion in which they are divided. the sum of the total value of the inventories and accounts receivable related to the commercial activities of the splinter when those activities are preponderantly performed, or of the fixed assets when the company is divided Other business activities are preponderantly. In order to determine the proportion referred to in this paragraph, investments in immovable property not affected by the preponderant activity shall be excluded.

Article 58. In cases of merger, the merging company may only decrease its pending tax loss to decrease at the time of the merger, from the tax utility corresponding to the merger. exploitation of the same spins in which the loss occurred.

When the shareholders or shareholders who hold the control of a company that has fiscal losses from previous financial years to be reduced and the sum of their income in the last three financial years change. have been less than the updated amount of such losses at the end of the last financial year before the exchange of shareholders or shareholders, the company may only reduce losses against tax profits corresponding to the holding of the same turns in which the losses occurred. For these purposes, the income shown in the financial statements for the period indicated, approved by the shareholders ' assembly, shall be considered.

For the purposes of the preceding paragraph, it is considered that there is a change of shareholders or shareholders holding the control of a company, when the holders, directly or indirectly, change more than fifty years. (a) a percentage of the shares or social parties with the right to vote of the company concerned, in one or more acts carried out within a period of three years. The provisions of this paragraph do not apply in cases where the change of shareholders or shareholders is presented as a consequence of inheritance, donation, or in the form of a corporate restructuring, merger or division of companies that are not considered In the case of the restructure, merger or division of the direct or indirect shareholders or shareholders who maintained prior control to those acts, they shall maintain it with a posterity to the " In the case of a merger, the provisions of the first paragraph of this Article shall apply. For these purposes, the shares placed among the large investor public will not be included.

The companies referred to in the preceding paragraphs to reduce the outstanding tax losses will have to keep their accounting records in such a way as to control their tax losses. in each turn you can exercise individually with respect to each exercise, as well as each new spin that is incorporated into the business. As regards non-identifiable expenditure, they must be applied in the proportional part which they represent on the basis of the income derived from the activity. This application must be met with the same criteria for each financial year.

The tax loss or the part of it, arising from merger or settlement of companies, in which the taxpayer is a shareholder or shareholder, shall not be reduced.

CHAPTER VI

OF THE OPTIONAL REGIME FOR GROUPS OF SOCIETIES

Article 59. The group of companies that meet the requirements set out in this Chapter to be considered as integrative and integrated, may apply for authorization to apply the optional regime consisting of calculating and entering into the tax. on income in accordance with the provisions of Article 64 of this Law.

The integrative society and the integrated ones that exercise the option provided for in this Chapter, will have to apply it until as long as the integrative society does not present notice to stop doing so, or, when it leaves comply with any of the requirements set forth in this Chapter.

The notice referred to in the preceding paragraph must be filed with the Tax Administration at the latest within the last month of the previous year to which it is intended to cease to apply. the option provided for in this Chapter.

Companies that choose to apply the provisions of this Chapter shall be in accordance with the other provisions of this Law, unless otherwise expressly provided for in this Law. Chapter.

Article 60. For the purposes of this Chapter, it is considered inclusive societies that meet the following requirements:

I. That is a resident society in Mexico.

II. That owns more than 80% of the voting shares of another or other integrated companies, including where such property is held by the pipeline of other companies that are in turn integrated from the same integrative society.

III. That in no case more than 80% of your voting shares are owned by another or other companies, unless such companies are resident. in a country with which there is a broad agreement for the exchange of information. For these purposes, the actions that are placed between the large investor public will not be computed, in accordance with the rules that the Tax Administration Service will issue.

For the purposes of this Chapter, they are not considered as voting shares, those that have limited voting rights, and those that, in the terms of the commercial law, are denominated in actions of enjoyment. In the case of companies other than shares, the value of the social parts shall be considered.

Article 61. For the purposes of this Law, integrated societies are considered to be those in which more than 80% of their voting shares are owned, either directly, indirectly or in both ways, by an inclusive society. For these purposes, the indirect holding referred to in this Article shall be that which has the integrating company through another company or other companies that are in turn integrated by the same integrative society.

Article 62. They will not have the character of integrator or integrated, the following societies:

I. Those included in Title III of this Act.

II. Those that in the third paragraph of article 7 of this Law make up the financial system and the capital investment companies created according to the laws of matter.

III. Residents abroad, including when they have permanent establishments in the country.

IV. Those that are in liquidation.

V. Civil societies and associations, as well as cooperative societies.

VI. The moral persons who are taxed according to Articles 72 and 73 of this Law.

VII. The participation associations referred to in Article 17-B of the Fiscal Code of the Federation.

VIII. Those carrying out maquila operations referred to in Article 182 of this Act.

IX. Aquellas that have tax losses from previous exercises to be reduced in terms of the provisions of Article 57 of this Law, which have been generated prior to the date on which they meet the requirements referred to in Article 60 or 61 of this Law, as appropriate.

X. Companies that provide the air public transport service.

Article 63. To obtain the authorization referred to in Article 59 of this Law, the integrating society must meet the following requirements:

I. Contar with the written agreement of the legal representative of each of the integrated societies to determine and find out the tax on the income in the terms set forth in this Chapter.

II. Submit the application for authorization to the tax authorities no later than the 15th day of August of the immediate year preceding that for which you are seeks to determine the tax in the terms of this Chapter, accompanied by the information provided by general rules of the Tax Administration Service, and the requirements stated in that date should be brought together. Chapter.

III. In the application referred to in the above fraction, please note to all companies that have the character of the integrated as provided in this Chapter.

The authorization referred to in this article shall be taxpayer's personal and may not be transmitted to another person or for a merger.

Article 64. The integrative society and its integrated to determine the income tax for the year to be entered, as well as the one that may differ, will be as follows:

I. The company in question will determine its tax loss or outcome of the financial year in accordance with the provisions of Article 9 of this Law.

II. The integrative society will get the integrated tax result, as follows:

a) Add the tax result for the financial year in question, corresponding to the integrated companies.

(b) Rshall be the tax losses of the financial year in which the integrated companies have incurred, without the update referred to in Article 57 of this Regulation Law.

c) As the case may be, it will add to its fiscal outcome or subtract its tax loss from the financial year in question. The tax loss will be without the update referred to in Article 57 of this Act.

The concepts outlined in the preceding points will be added to or will be subtracted from the integrable participation.

III. The integrative company will calculate an integrated fiscal result factor corresponding to the financial year in question, which will be obtained by dividing the an integrated fiscal result of the financial year between the sum of the tax results obtained in that financial year by the integrating company and its integrated companies in the integrable participation. The integrated tax result factor will be calculated up to the tithe minimum.

In case the integrated tax result is negative, the integrated tax result factor will be zero.

IV. The society in question will determine the tax of the financial year to find out, for which it will add the amount of the tax corresponding to the participation integrable with the one that corresponds to the non-integrable participation, according to the following:

a) The amount relative to the integrable participation, will be determined by multiplying the tax that has corresponded to it not to apply the provisions in the present Chapter for the integrable participation of the financial year, the quantity obtained shall be multiplied by the integrated tax result factor referred to in paragraph III of this Article.

b) The amount corresponding to the non-integrable participation, will be determined by multiplying the tax that has corresponded to it not to apply the provisions in the present Chapter for non-integrable participation in the financial year.

c) The sum of the amounts obtained in the preceding points shall be the tax to be entered in conjunction with the declaration corresponding to the financial year Tax in question.

V. The difference between the tax corresponding to the integrable participation and the one obtained under paragraph (a) of the fourth paragraph of this Article, shall be the tax for the financial year which may be deferred for a period of three years, at the end of which it shall be informed in accordance with the provisions of the first paragraph of Article 67 of this Law.

For the purposes of this Chapter, the integrable participation will be the shareholding that an integrating society has in the social capital of an integrated society during the fiscal year of is either directly or indirectly. For these purposes, the average daily corresponding to that financial year shall be considered.

The integrable participation of the integrating societies will be 100%.

Non-integrable participation will be the shareholding in which the integrating society does not participate directly or indirectly in the social capital of an integrated society.

When the integrative company or the integrated companies have investments as referred to in Article 176 of this Law, the integrative company or its integrated companies shall not consider the taxable income, the tax income or tax result, derived from such investments in order to determine their tax outcome or tax loss and shall be within the meaning of Article 177 of that Act.

Article 65. Integrative and integrated companies during the period for which they are required to pay income tax in the terms of this Chapter shall bear the net tax income account applying the rules and procedure laid down in Article 77 of this Law, and must be in accordance with the provisions of this Article in respect of the net fiscal utility of the financial year, as follows:

I. In each exercise, you will identify the amount of the net tax utility for:

a) The integrable participation, for which it will multiply the net tax utility by the inclusive participation that corresponds to the society in question.

b) The integrable participation by which the tax of the financial year was paid, the same as the amount that is obtained by multiplying the amount that results in accordance with the previous paragraph by the factor referred to in Article 64 (III) of this Law.

c) The integrable participation by which the tax of the financial year was deferred, which shall be obtained from decreasing to the amount obtained under point (a), the quantity resulting in accordance with subparagraph (b) above.

d) Non-integrable participation, which will be calculated by multiplying the net tax utility by non-integrable participation.

II. For the purposes of the first paragraph of Article 77 of this Law, only the portion of the net tax utility shall be added to the net tax income account. the net tax profit of the financial year determined in accordance with points (b) and (d) of the first subparagraph of this Article.

III. When the deferred tax referred to in Article 64 of this Law is paid, the company concerned may increase the balance of its account the net tax income of the financial year in which such payment occurs, with the net tax utility referred to in paragraph (c) of this Article. In addition, when the deferred tax is paid in advance, the balance of the net tax income account of the financial year in which such payment occurred with the net tax utility corresponding to it may be increased.

Article 66. The authorization to exercise the option referred to in Article 59 of this Law shall have its effects on the group of companies from the financial year following that in which the grant.

Companies that comply with the provisions of this Chapter to be considered as integrated before the authorization has effects will be incorporated into the group from the year following that in that the authorization was obtained.

Companies that qualify as integrated after the date on which the authorisation took effect shall be incorporated in the financial year following that in which such an assumption occurs.

In the case of integrated companies that are incorporated into the group of companies in the period between the filing date of the application to exercise the option referred to in the present Chapter and the one in which the respective authorization is notified, the integrator must present the notice of incorporation within 15 days after the date of notification of the authorization by the tax authorities.

For the purposes of this Article, the integrative company shall submit within 15 days of the date on which it acquires directly or through another integrated company or other integrated companies. 80% of the shares with the right to vote of a company, a notice to the tax authorities in which it is pointed out, the percentage of the integrable participation, as well as the class of participation, whether direct, indirect or both, accompanied with the information that is set by general rules to the Service Tax Administration.

In the case of a company that arises on the occasion of a division, the integrative company must present the notice within forty-five days after the date on which the company is established. split.

When the integrator does not incorporate a society to be considered as integrated, the group must stop applying the option referred to in this Chapter, with both the integrator and the integrated to find out the tax that would have been deferred, with the update and the surcharges corresponding to the period elapsed from the date on which the tax of each society had to have been found of not having been to the provisions in the present Chapter and until the same is done. The above shall also apply in the case where a company is incorporated which does not qualify as an integrated company under the terms of Article 62 of this Law.

Article 67. Companies that have chosen to apply the provisions of this Chapter shall enter into the deferred income tax on the same date as they are required to file the declaration. for the financial year following the year in which the period of three financial years referred to in Article 64 (V) of this Law is completed.

The deferred income tax shall be made up to date for the period from the month in which the tax was paid not to have exercised that option until the filing date. of the statement above.

Article 68. Society that is no longer to be considered as integrated or that no longer meets the requirements to be integrated, must be disintegrated from the date on which this assumption occurs and within the following month the tax that was deferred during the period that was in the provisions of this Chapter.

The deferred tax on enterar shall be updated for the period from the month in which the tax payment was made for each financial year not to apply the option provided for in this Chapter and until the same is done.

In the case of merger of companies, the merging company must pay the tax which has been deferred by the integrated company which disappears on the occasion of the merger, applying the provisions of the first and second paragraphs of this Article.

In the case of a division of companies, a company which is a member of the company or which has the character of a division designated in accordance with Article 14-B, part II, point (b) of the Tax Code of the Federation, must pay within the month following that in which the division takes effect, the total of the tax which before that fact has been deferred by the breakaway company, applying the provisions of the first and Second paragraphs of this article. The subsidiary company may continue to apply the provisions of this Chapter from the financial year following that in which the division occurs.

When an integrated company is located in the provisions of this article, the integrative company must present a notice to the Tax Administration Service within the next 15 days. to the date on which such an assumption occurs, accompanied by information indicating the Tax Administration Service by means of general rules.

Article 69. When the integrative company ceases to apply the option referred to in this Chapter, it may no longer be considered as an integrator or no longer meet the requirements to be so, the company shall be disintegrated from the date on which this assumption occurs and within the following month the tax that has been deferred during the period that was laid down in this Chapter.

The deferred tax on enterar shall be updated for the period from the month in which the tax payment was made for each financial year not to apply the option provided for in this Chapter and until the same is done.

When the integrating company is located in any of the cases referred to in the first paragraph of this article, the companies that make up the group will be prevented from reapplying the the option referred to in this Chapter for the three years following that in which the case in question is updated.

In the case of merger of companies, when the society that disappears in the context of the merger is the integrating society, both the merging company, and the integrated societies will be obliged to the whole the deferred tax, applying the provisions of the first and second paragraphs of this Article.

In the case of the partial division of the integrative company, the company which is a member of the company must pay within the month following that in which the division takes effect, the total of the a tax which, before that fact, has been deferred by the breakaway company, applying the provisions of the first and second paragraphs of this Article.

In the event of a total division of the integrative company, the company having the designated split character referred to in Article 14-B, Part II, point (b) of the Fiscal Code of the Federation and the Integrated partnerships shall be within the meaning of the first and second paragraphs of this Article.

When the group is located within the meaning of this Article, the integrating company, the merging company, the splinter or the split referred to in the preceding paragraph, as appropriate, shall submit the notice referred to in the last paragraph of Article 68 of this Law for each of the companies of the group included itself with the Tax Administration Service within 15 days of the date on which such an assumption occurs, presenting the information that the Tax Administration Service points out through general character rules.

In the event that any company ceases to be integrated or integrative in terms of the provisions of this Chapter, or, where such companies cease to comply with the requirements laid down therein and the company concerned continues to apply this option, the group shall be obliged to the entire deferred tax, applying the provisions of the first and second paragraphs of this Article, as well as the surcharges resulting from the month in which the payment of the tax for each financial year should have been made applied and until the month in which the option is found.

Article 70. Companies applying the option referred to in this Chapter, in addition to the obligations laid down in other articles of this order, shall have the following:

I. The integrator and the integrated must carry and preserve the records that are listed below:

a) Those that allow to determine the net tax utility account referred to in Article 65 of this Act.

(b) Of dividends or profits received or distributed, including those that have not come from your net tax income account, as provided for in this Article in the general rules for these purposes to issue the Tax Administration Service.

II. The integrator and the integrated must attach to the information statement of their tax situation that they are obliged to present according to the Article 32-H of the Tax Code of the Federation, copies of the opinions that in the tax matters received from third parties and that have had the effect of reducing the tax result or increase the fiscal loss of the exercise.

III. The integrator must carry and keep the following records:

a) The one where the determination of the integrated tax result and the integrated fiscal result factor of the exercise are displayed.

b) The percentage of inclusive participation that the integrating society has maintained in each of the societies integrated in the exercise.

The records referred to in this Article shall be kept as long as their tax effects are prolonged in time, in terms of the applicable tax provisions.

IV. The integrative company shall be required to present a statement of the financial year within three months of the end of the financial year in which it manifests the integrated tax result factor.

You must also make public in the month of May of the year in question, the information relating to the tax which has been deferred in accordance with this Chapter, using your Internet page or the means that the Tax Administration Service establishes by general rules.

V. Integrated societies should:

a) Inform the integrative company within three months of the end of the financial year resulting in the tax loss or loss reciprocated.

b) Submit the exercise statement within three months of closing the exercise.

c) Make public in the month of May of the financial year concerned, the information relating to the tax that has been deferred under this Chapter, using your Internet page or the means that the Tax Administration Service establishes by general rules.

Where any or some of the integrated companies are required to change their fiscal performance or loss of the financial year, they shall submit a statement supplementary to that referred to in point (b) of this section. In that case, the integrating company shall be required to submit a supplementary statement of the financial year in which the integrated tax result factor manifests.

When in the exercise of their powers, the tax authorities modify the tax result or the tax loss of one or more integrated or the integrating and thereby modifying the integrated tax result, the integrative and integrated society shall submit a supplementary declaration in accordance with the provisions of the preceding paragraph.

If, as a result of the provisions of any of the above two paragraphs, it is a tax difference from the integrator or any of its integrated, such companies shall be obliged to find out the updated tax and surcharges corresponding to the period from the date on which the payment was made and until the payment is made, by means of a declaration complementary.

Where the assumption referred to in the preceding paragraph derives from an amendment to the integrated tax result factor, the integrating company may submit the supplementary declaration in which the factor referred to above is corrected no later than the last month of the first or second half of the year in which the declaration giving rise to the the difference identified or, in which the authority has modified the tax result or loss of some or some of the companies in the group.

In case the integrating company or any of the integrated companies change their fiscal outcome or loss of the financial year, or when in the exercise of their powers, the tax authorities modify the tax result or the tax loss of the integrator or one or more integrated societies, and these assumptions occur once the deferred tax is found in accordance with the Article 64 (V) of this Law, the integrated society or the integrator, according to (a) it shall cover both the tax on its charge and the updating and surcharges which have been generated as a result of the change referred to in question, without the result that the integrated tax result or the factor of the integrated tax result. Furthermore, where the irregularity consists in showing a major tax loss to the actual loss, the integrating company must amend the integrated tax result and the integrated tax result factor and the companies which have The tax on your charge must be made aware of the updating and surcharges corresponding to the difference between the tax which you have at the moment learned and the tax that you had to know, for the period from the month in which the payment was due. tax of not having exercised that option until the date on which the payment is made.

VI. When an integrated or integrative society holds operations through which it places land, investments, shares, social parts, between others, with some other company of the group, must be made in accordance with the provisions of Article 179 of this Law.

The integrated company that does not comply with any of the obligations referred to in this article must apply the provisions of Article 68 of this Law, being obliged to find out the whole of the deferred income tax for the period in which it applied this option, with the surcharges resulting from the month in which the tax was paid for each financial year in which the option was not applied and until it was made.

If it is the integrative society that fails to comply with any of the obligations referred to in this article, the group shall cease to apply the option referred to in this Chapter. each company to find out the entire deferred income tax for the period in which it applied this option, with the update and surcharges resulting from the month in which the tax was paid for each non-financial year. have applied the option and until the option is carried out, in accordance with Article 69, last paragraph, of this Law.

Article 71. The integrative and integrated societies shall determine the interim payments to be made in each of the months of the financial year in accordance with the following:

I. will calculate the interim payment for the period in question in accordance with the procedure and rules set out in Article 14 of this Law.

II. The result determined in accordance with the above fraction, the integrable participation for the exercise will be applied to it The amount obtained shall be multiplied by the integrated tax result factor corresponding to the previous immediate financial year.

III. The result of fraction I of this article will be multiplied by non-integrable participation.

IV. The interim payment of the period to be entered shall be the amount obtained from adding the results obtained under fractions II and III above.

V. Against the tax of the financial year to find out in terms of the provisions of Article 64 of this Law, provisional payments may be credited corresponding thereto, carried out in accordance with this Article.

As for the first exercise in which the group applies the option referred to in this Chapter, the integrative company will calculate the integrated tax result factor in terms of the Article 64 (III) of this Law which has been the subject of the group in the previous immediate exercise of having exercised that option. In this case, the first provisional payment for the financial year shall comprise the first, second and third months of the financial year.

CHAPTER VII

OF COORDINATES

Article 72. They are considered to be coordinated, to the moral persons who manage and operate fixed assets or fixed assets and land, directly related to the activity of the terrestrial self-transport of cargo or passengers and whose members carry out Land self-transport activities of cargo or passengers or complementary to such activities and have fixed assets or fixed assets and land, directly related to those activities.

Coordinated shall comply with the obligations laid down in this Law, applying the provisions of Section I of Chapter II of Title IV thereof, according to the following:

I. will calculate and find, for each of its members, provisional payments under the terms of Article 106 of the Law. The result obtained according to this fraction shall be applied to the rate of the said article being treated as natural persons, or the rate set out in Article 9 thereof, in the case of moral persons.

II. To calculate and find out the tax of the exercise of each of its members, they will determine the taxable utility of the exercise by applying the provisions of Article 109 of this Law. To the taxable utility determined in the terms of this fraction, the rate of Article 152 of this Law shall be applied to it, in the case of natural persons, or the rate established in Article 9 thereof, in the case of moral persons.

Against the tax payable under the terms of the preceding paragraph, provisional payments may be credited performed by the coordinate.

The tax of the year will be paid by declaration that the moral persons will present during the month of March of the year next, to the authorised offices, except in the case of a moral person, whose members by whom he complies with his tax obligations are only natural persons, in which case the declaration shall be lodged in the month of April of the year next.

The natural or moral persons, who fulfil their tax obligations through several coordinates of which they are Member States, instead of applying the provisions of the first paragraph of this fraction, may opt for each of the coordinates of those who are members to carry out the payment of the income tax on their own, in respect of the income they obtain from the coordinated in question, applying to the taxable utility referred to in the preceding paragraph the rate laid down in Article 9 of this Law, with respect to moral persons or the maximum rate to be applied to the excess of the lower limit, which establishes the tariff contained in Article 152 of the Act in the case of natural persons. Such payment shall be deemed final. Once the option referred to in this paragraph has been exercised, it may not be varied during the five-year period from the one in which the said option began to be exercised. The option referred to in this paragraph may also be applied by natural or moral persons who are members of a single coordination.

III.         They shall, on behalf of their members, carry out the holds and the whole of them and, where appropriate, issue the constances of such withholding, where this law or the other tax provisions require it, as well as the proof of proof. fiscal.

IV.         They shall keep a separate record of the income, expenses and investments of the operations they perform on behalf of each of its members, in compliance with the provisions of this Law and those of the Code Prosecutor of the Federation. In the case of settlements that are issued in the terms of the sixth paragraph of Article 73 of this Law, the record referred to shall be made in a comprehensive manner.

V.          To issue and collect the tax vouchers of the income that they receive and of the fees that are carried out, of the transactions they carry out on behalf of each of its members, in accordance with the effect established in this Law and in other tax provisions.

VI. They will provide their members, constancy of income and expenses, as well as the tax that the coordinated payment for the account of the member, no later than 31 January of each year.

For the purposes of this article, the Coordinated shall comply with their own obligations and shall do so jointly by their members in cases where appropriate. Similarly, the tax to be determined by each of its members shall be made jointly in a single declaration.

For the purposes of this Law, the coordination will be considered to be responsible for the fulfillment of the fiscal obligations of its members, in respect of the operations carried out through the coordinated, with the members responsible for solidarity in respect of such compliance by the appropriate party.

For the purposes of this article, two or more persons are not considered to be related parties, where the land transport services of cargo or passengers are provided to persons with whom the Contributors are interlinked in the administration, control and participation of capital, provided that the final service of self-transport of cargo or passengers is provided to third parties with which they are not interlinked in the administration, control or participation of capital, and that service does not is provided in conjunction with the disposal of goods. No related parts are considered when the self-transport service is between coordinated or integral parts of the self-handling service.

When individuals engage in co-ownership activities and choose to contribute to the coordination in the terms of this Chapter, those coordinated will be those who comply with the obligations. Tax on co-ownership and shall be considered as common representatives of the co-ownership.

Article 73. Dealing with natural persons who meet their tax obligations through a number of coordinates of which they are members, when their income comes exclusively from the Land transport of cargo or passengers, shall require the coordination of those who are members, the information necessary to calculate and find out the income tax applicable to them. Except where they have exercised the option referred to in the fourth paragraph of Article 72 (II) of this Law.

To calculate and enter the tax for the financial year, you will apply the provisions of Article 109 of this Law. The taxable utility determined in accordance with that provision shall be charged with the tariff referred to in Article 152 of this Regulation.

Natural persons who are members of moral persons engaged in the activities of land transportation of cargo or passengers may comply with the obligations laid down in this Law in an individual manner, provided that they directly administer the vehicles that correspond to them or have provided them to the moral person concerned.

When they choose to pay the tax on an individual basis they must give notice to the tax authorities and communicate it in writing to the respective moral person, no later than the date on which the tax is due first interim payment for the financial year concerned.

Natural persons who have chosen to pay the tax individually may deduct the costs incurred during the financial year corresponding to the vehicle they administer, even if the vouchers (a) to be coordinated, provided that such documentation meets the requirements of the tax provisions and identifies the vehicle to which it corresponds.

Moral persons shall not consider the income that corresponds to their members who have paid individually or the deductions that they correspond, and must be given to the natural persons and (i) the payment of the tax individually, the liquidation of the revenue and expenditure. The moral persons referred to in the first term shall keep a copy of the clearance and proof of the costs incurred in the financial year relating to the vehicle administered by those natural persons during the period referred to in Article 1 (2). Article 30 of the Tax Code of the Federation.

The moral persons referred to in Article 72 of this Law shall apply the provisions of Article 12 of this Law, when they enter into liquidation, and must meet the requirements that the establish in the Regulation of this Law.

Moral persons who do not perform the business activities on behalf of their members shall comply with the obligations of this article and with Articles 72, 76, 102 and 105 of this Law.

When the members of the moral persons referred to in this Chapter are grouped in order to jointly carry out the necessary expenses for the development of the activities referred to in the (a) the proportional share of the expenditure may be deductible on an individual basis, even if the tax vouchers are in the name of one of the other members, provided that such vouchers meet the other requirements laid down by the tax provisions.

CHAPTER VIII

REGIME OF AGRICULTURAL, LIVESTOCK, FORESTRY AND FISHING ACTIVITIES

Article 74. They shall comply with their tax obligations in respect of income tax under the arrangements set out in this Chapter, the following contributors:

I. The moral people of agricultural law who dedicate themselves exclusively to agricultural, livestock or forestry activities, the cooperative societies of production and other moral persons, who are engaged exclusively in such activities.

II.          Moral persons engaged exclusively in fishing activities, as well as cooperative production societies that are exclusively engaged in such activities.

III.         Natural persons engaged exclusively in agricultural, livestock, forestry or fishing activities.

The provisions of this Chapter shall not apply to moral persons who are taxed in the terms of Chapter VI of Title II of this Law.

When individuals engage in co-ownership activities and choose to pay for moral people in the terms of this Chapter, those moral persons will be those who comply with the tax obligations of the co-ownership and shall be considered as common representatives of the co-ownership.

For the purposes of this Law, when the moral person meets his or her members with the provisions of this Chapter, he/she shall be considered to be responsible for the performance of the tax obligations in charge of its members, with respect to the operations carried out through the moral person, with the members responsible for solidarity in respect of such compliance by the appropriate party.

The moral persons referred to in this Chapter shall apply the provisions of Article 12 of this Law when they enter into liquidation.

They are considered as contributors exclusively to agricultural, livestock, fishing or forestry activities, whose income from these activities represents at least 90% of their income total, not including income from the disposal of fixed assets or fixed assets and land, of their property that would have been affected by their activity.

The moral persons referred to in this Chapter shall comply with the obligations laid down in this Law in accordance with Section I of Chapter II of Title IV thereof, next:

I. shall calculate and find out, for each of its members, provisional payments in accordance with Article 106 of the This Law. The result obtained according to this fraction shall be applied to the rate of the said article being treated as natural persons, or the rate set out in Article 9 thereof, in the case of moral persons.

II.          In order to calculate and find out the tax of the financial year of each of its members, they shall determine the taxable profit of the financial year by applying the provisions of Article 109 of this Law. To the taxable utility determined in the terms of this fraction, the rate of Article 152 of this Law shall be applied to it, in the case of natural persons, or the rate laid down in Article 9 thereof, in the case of moral persons.

Against the tax payable under the terms of the preceding paragraph, provisional payments may be credited performed by the moral person.

The tax of the year will be paid by declaration that the moral persons will present during the month of March of the year next, to the authorised offices, except in the case of moral persons, who comply with the tax obligations of members who are solely natural persons, in which case the declaration shall be filed in the month of April of the year next.

The taxpayers referred to in the tenth and third paragraphs of this Article shall deduct as expenditure the (a) the amount of the total amount of the amount of the financial year. The taxpayers referred to in the fourth paragraph of this article shall apply the provisions of Section II of Chapter II of Title II of this Law.

III.         They shall comply with the other formal, withholding and integer obligations laid down by the tax provisions.

For the purposes of this article, moral persons shall comply with their own obligations and shall do so jointly by their members in cases where appropriate. Similarly, the tax to be determined by each of its members shall be made jointly in a single declaration.

Moral persons who do not perform the business activities on behalf of their members must comply with the obligations of this title and with Article 102 and 105 of this Law.

The moral persons referred to in this Chapter shall not be required to determine at the end of the year the annual adjustment for inflation referred to in Chapter III of Title II of this Law.

Moral persons who are exclusively engaged in agricultural, livestock, forestry or fishing activities shall not pay income tax on income from such activities until for an amount, in the financial year, of 20 times the general minimum wage corresponding to the geographical area of the taxpayer, raised per year, for each of its members or associates provided that it does not exceed, in its entirety, 200 times the minimum wage the general area of the Federal District, raised per year. In the case of natural persons, they shall not pay income tax on income from such activities up to an amount, in the financial year, 40 times the general minimum wage corresponding to the geographical area of the taxpayer, high per year. The moral persons referred to in this paragraph may add to the balance of their net fiscal utility account for the financial year in question, the utility corresponding to the exempt income; in order to determine that utility, the exempt income corresponding to the taxpayer by the profit ratio of the financial year, calculated in accordance with Article 14 of this Law.

Dealing with natural and moral persons engaged exclusively in agricultural, livestock, forestry or fishing activities, whose income in the year exceeds 20 or 40 times the minimum wage the general geographical area of the taxpayer raised per year, as appropriate, but less than 423 times the general minimum wage in the geographical area of the taxpayer raised per year, the provisions of the preceding paragraph shall apply to them, the surplus will be paid the tax in the terms of the seventh paragraph of this Article, reducing the tax determined according to the fraction II of the said paragraph, in a 40 treatment of natural persons and 30% for moral persons. The moral persons referred to in this paragraph may add to the balance of their net fiscal utility account for the financial year in question, the utility corresponding to the exempt income; in order to determine that utility, the exempt income corresponding to the taxpayer by the profit ratio of the financial year, calculated in accordance with Article 14 of this Law.

Dealing with companies or associations of producers, which are exclusively engaged in agricultural, livestock, forestry or fishing activities, exclusively constituted by members or associates physical and that each partner or associate has an income exceeding 20 times the general minimum wage of the geographical area of the taxpayer raised per year, without exceeding 423 times the general minimum wage of the geographical area of the taxpayer elevated to the year, but not in full the income in the exercise of the company or If the general minimum wage is 4230 times the general minimum wage of the high contributor's geographical area per year, the provisions of the tenth first paragraph will apply to it, the surplus will pay the tax in the terms of the seventh paragraph of this Article, by reducing the tax determined in accordance with the second subparagraph of paragraph II, by 30%.

Natural and moral persons engaged exclusively in agricultural, livestock, forestry or fishing activities, whose income in the year exceeds the amounts indicated in the tenth second paragraph, the exemption provided for in the tenth first paragraph of this article shall apply to them, for the surplus, the tax shall be paid in the terms of the seventh paragraph of this article and the reduction referred to in the tenth second shall be applicable paragraph of this article up to the amounts in the established. The moral persons referred to in this paragraph may add to the balance of their net fiscal utility account for the financial year in question, the utility corresponding to the exempt income; in order to determine that utility, the exempt income corresponding to the taxpayer by the profit ratio of the financial year, calculated in accordance with Article 14 of this Law.

Dealing with moral persons who are exclusively engaged in agricultural, livestock, fishing or forestry activities to calculate the tax corresponding to dividends or distributed profits, Instead of the provisions of the preceding paragraph, they must multiply the dividends or profits distributed by the factor that is obtained from dividing the unit, between the factor that is obtained from subtracting the unit the result of dividing the tax on the income to be paid in the terms of this article, between the utility or distributed dividends.

Article 75. The moral person who meets the tax obligations on behalf of his or her members in the terms of this Chapter, in addition to the obligations referred to in the previous article, shall have the following:

I. Make the holds and the whole of the holds and, where applicable, the issue of the constances on behalf of their members of such withholding, where this Act or other tax provisions oblige.

II.          To keep a separate record of the income, expenses and investments of the transactions that they perform on behalf of each of its members, in compliance with the provisions of this Law and those of the Fiscal Code of the Federation.

III.         To issue and obtain proof of the income and income, respectively, of the transactions they carry out on behalf of each of its members, in accordance with the provisions of this Law and the other tax provisions.

The moral persons referred to in this Chapter must be registered in the Federal Taxpayer Registry.

The natural persons who are located in the cases referred to in the tenth and tenth paragraphs of the previous article must be registered in the Federal Taxpayer Registry.

CHAPTER IX

MORAL PEOPLE ' S OBLIGATIONS

Article 76. Taxpayers who earn income from those mentioned in this Title, in addition to the obligations set forth in other articles of this Act, will have the following:

I.           Carry out the accounting in accordance with the Federation's Fiscal Code, its Rules of Procedure and the Rules of Procedure of this Law, and make the records in it.

II.          Issue the tax vouchers for the activities they perform.

III.         To issue the tax vouchers in which the amount of payments made that constitute income of a source of wealth located in Mexico in accordance with the provisions of Title V of this Law or of the payments made to the establishments abroad of credit institutions of the country, in the terms of Article 48 of the same and, where applicable, the tax withheld from the resident abroad or the aforementioned credit institutions.

IV.         Make a statement of financial position and inventory inventory to the date of the end of the financial year, in accordance with the respective regulatory provisions.

V.          Submit a statement determining the tax outcome of the financial year or the taxable income of the financial year and the amount of the tax corresponding to the authorised offices within three months of the date on which the tax is payable. end that exercise. Such a declaration will also determine the tax utility and the amount corresponding to employee participation in the company's profits.

VI.         Submit, by 15 February of each year, to the tax authorities and by means of the official form which the authorities approve, the following information:

a) The outstanding balance at 31 December of the previous year, of loans granted to you or guaranteed by residents abroad; and

b) The type of financing, name of the beneficial owner of the interest, type of currency, the applicable interest rate and the dates of enforceability of the principal and accessories, of each of the financing operations referred to in the preceding paragraph.

VII.        To present the statements referred to in this article by electronic means in the e-mail address that the Tax Administration Service points out to the effect by means of general provisions.

VIII.       Take a record of the operations that you perform with serial-issued value titles.

IX.         Obtain and preserve the documentation, in the case of taxpayers who conduct transactions with related parties resident abroad, showing that the amount of their income and deductions were made from the price or amount of consideration that would have been used by independent parties in comparable transactions, which shall contain the following data:

a) The name, name or social reason, address and tax residence of the persons involved in the operations, as well as the documentation demonstrating direct and indirect participation between related parties.

b) Information about the functions or activities, assets used, and risks assumed by the taxpayer for each type of operation.

c) Information and documentation on related party transactions and their amounts, for each related party and for each type of transaction according to the classification and with the data set out in Article 179 of this Law.

d) The method applied in accordance with Article 180 of this Act, including information and documentation on comparable operations or companies for each type of operation.

Taxpayers who perform business activities whose income in the previous immediate year has not exceeded $13 ' 000,000.00, as well as the taxpayers whose income from the provision of professional services has not exceeded that of $3 ' 000,000.00 shall not be required to comply with the obligation laid down in this fraction, except for those in the case referred to in the penultimate paragraph of Article 179 of this Law.

The exercise of the powers of verification in respect of the obligation under this fraction can only be performed for what it does for exercises terminated.

The documentation and information referred to in this section shall be recorded in accounts, identifying in the accounts the case of transactions with related parties resident abroad.

X.          Present, together with the statement of the exercise, the information of operations carried out with related parties resident abroad, carried out during the previous immediate calendar year, to be requested by means of the official form which the tax authorities approve.

XI.         Dealing with moral people who make payments for dividends or profits to natural or moral persons:

a) Make payments with non-negotiable nominee check issued on behalf of the shareholder or through transfers of regulated funds by the Bank of Mexico to the account of that shareholder.

b) Provide persons to whom they make payments for the concepts referred to in this fraction, proof of their amount, the tax income tax withheld in terms of Articles 140 and 164 of this Law, as well as whether they come from the accounts set out in Articles 77 and 85 of this Law, as it is, or whether it is the dividends or profits to which refers to the first paragraph of Article 10 thereof. This voucher will be delivered when the dividend or utility is paid.

XII.        With regard to moral persons holding transactions with related parties, they must determine their cumulative income and their authorized deductions, considering for those transactions the prices and amounts of consideration that they would have been used with or between independent parties in comparable transactions. For these purposes, they shall apply the methods laid down in Article 180 of this Law, in the order laid down in that Article.

XIII.       Submit, by the 15th of February of each year to the authorised offices, a statement providing the information of the operations carried out in the previous calendar year, through trusts for which the perform business activities in which they are involved.

XIV.       Carry out inventory control of goods, raw materials, processed products, and finished products, in accordance with the perpetual inventory system. Contributors may incorporate variations to the system identified in this fraction, provided that they meet the requirements that are set by general rules.

Taxpayers who choose to value their inventories in accordance with the fourth paragraph of Article 41 of this Act shall keep a record of the factors used to set the gross profit margins applied to determine the cost of the sold during the financial year, identifying the homogeneous items by groups or departments with the profit margins applied to each of the them. The registration referred to in this paragraph shall be made available to the tax authorities within the time limit laid down in Article 30 of the Tax Code of the Federation.

XV. Report to the tax authorities, through electronic media and formats, that I point out the Tax Administration Service by means of general character, not later than day 17 of the immediate month after the month in which the operation is carried out, of the consideration received in cash in national or foreign currency, as well as in pieces of gold or silver, the amount of which is higher to a hundred thousand pesos. Those rules of a general nature may provide for cases where it is not necessary to present the information referred to in this section.

The information referred to in this section will be made available to the Secretariat of Finance and Public Credit in the terms of Article 69 of the Code Prosecutor of the Federation.

XVI.       Report to the tax authorities, through the means and formats that the Tax Administration Service points out for this purpose by means of general rules, loans, contributions for future capital increases or capital increases received in cash, in national or foreign currency, greater than $600,000.00, within 15 days after the date on which the corresponding amounts are received.

XVII.      The taxpayers resident in the country who have establishments abroad, in addition to the obligations established in other articles of this Law, will have the following:

a) Take the accounting books and records corresponding to the establishment abroad, in the terms of this Law and its Rules of Procedure. The corresponding seats may be made in accordance with the following:

1.      In Spanish or in the official of the country where the establishments are located. If the corresponding seats are made in a language other than Spanish, the translation shall be provided to the tax authorities where they so require in the exercise of their powers of verification.

2.      Recording operations in national currency or legal tender in the country where such establishments are located. If recorded in currency other than the national currency, the conversion may be made, at the choice of the taxpayer, for each transaction or the exchange rate that the foreign currency has in Mexico on the last day of each calendar month.

b) Keep the books, records and documentation of the respective seats and the proof of having complied with their tax obligations, relating solely to the establishment abroad, during the term This Law and the Tax Code of the Federation are indicated by this Law. They may be kept in such establishment provided that the requirements and conditions laid down in the Regulation of this Law are met.

XVIII. Moral persons who distribute advances or yields in the terms of Article 94 (II) of this Law shall issue proof of proof. Tax on the amount of the advances and yields distributed, as well as the tax withheld.

XIX.       Trying of taxpayers who have chosen to rule in the terms of Article 32-A of the Fiscal Code of the Federation, they will have to make known in the Ordinary General Assembly of Shareholders a report in which they report on the compliance with the tax obligations in respect of the tax year to which the opinion corresponds.

The obligation laid down in the preceding paragraph shall be fulfilled if the said Assembly is distributed to the shareholders and the report is read out on the review of the tax situation referred to in Article 52 (III) of the Tax Code of the Federation.

Article 77. The moral people will carry a net tax utility bill. This account will be added to the net fiscal utility of each financial year, as well as to the dividends or profits received from other moral persons resident in Mexico and with the income, dividends or profits subject to tax regimes. Preference in the terms of the tenth paragraph of Article 177 of this Law, and will be reduced by the amount of dividends or profits paid, with the distributed profits referred to in Article 78 of this Law, when in both cases come from the balance of that account. For the purposes of this paragraph, no dividends or profits are included in shares or reinvested in the subscription and capital increase of the same person who distributes them, within 30 calendar days of their distribution. In order to determine the net tax income referred to in this paragraph, the amount resulting from the terms of Article 10 (II) of this Law shall be reduced, if applicable.

The balance of the account provided for in this article, which is held on the last day of each financial year, without including the net tax income of the financial year, shall be updated for the period from the month in which it is carried out the last update and until the last month of the financial year concerned. Where dividends or profits are distributed or received after the update provided for in this paragraph, the balance of the account held at the date of the distribution or collection shall be updated for the period from the month in which the last update was made and up to the month in which the dividends or profits are distributed or collected.

For the purposes of this article, it is considered net fiscal utility of the financial year, the amount that is obtained from subtracting the tax result from the financial year, the income tax paid in the Article 9 of this Law, the amount of non-deductible items for the purposes of the tax, except those mentioned in Article 28 (VIII) and (IX) of the Law cited, the participation of workers in the profits of the undertakings referred to in Article 9 (I) of the same Article, and the amount to be determined in accordance with the following paragraph.

When in the financial year for which the net tax utility referred to in the preceding paragraph is calculated, the moral person concerned has the obligation to accumulate the proportional amounts of the income taxes paid abroad in accordance with the second and fourth paragraphs of Article 5 of this Law, shall be reduced to the amount obtained under the preceding paragraph, the amount resulting from the application of the following formula:

MRU

Where:

MRU: To subtract from the amount obtained according to the third paragraph of this article.

D: Dividend or utility distributed by the resident society abroad to the moral person residing in Mexico without reduce the retention or payment of income tax that has been effected by its distribution.

MPI: Proportional Amount of Income Tax Paid Abroad at First Corporate Level, referred to in paragraphs second and third of article 5 of this Law.

MPI2:    Proportional amount of income tax paid abroad at the second corporate level, referred to in the fourth and fifth paragraphs of Article 5 of this Law.

DN: Dividend or utility distributed by the resident society abroad to the resident moral person in Mexico with the withholding or payment of the income tax that has been effected for its distribution.

AC: Accredited taxes in accordance with the first, second, and fourth paragraphs of Article 5 of this Act that correspond to the income that accumulated by both the perceived dividend and its proportional amounts.

When the sum of the income tax paid under the terms of Article 9 of this Law, non-deductible items for income tax purposes, except those specified in fractions VIII and IX Article 28 of this Law, the participation of workers in the profits of the companies referred to in Article 9 (I), and the amount determined in accordance with the preceding paragraph, is greater than the tax result of the exercise, the difference will be reduced from the balance of the net tax utility that is the end of the financial year or, where appropriate, the net tax profit to be determined in the following financial years, until exhausted. In the latter case, the amount to be reduced shall be updated from the last month of the year in which it was determined and until the last month of the year in which it is reduced.

When the fiscal result of an exercise is modified and the modification reduces the determined net tax utility, the updated amount of the reduction shall be decreased from the balance of the utility account. Net tax that the moral person has to the date on which the supplementary declaration is presented. Where the updated amount of the reduction is greater than the balance of the account at the date of submission of the said declaration, the income tax resulting from the application of the rate referred to in paragraph 1 shall be paid in the same declaration. Article 9 of this Law to the amount that results from adding to the difference between the reduction and the balance of that account, the tax corresponding to that difference. In order to determine the tax to be added, the difference cited by the factor of 1.4286 will be multiplied and the result will be applied to the rate of Article 9 of this Law. The amount of the reduction shall be updated for the same periods as the net fiscal utility of the financial year concerned was updated.

The balance of the net tax utility account shall be transmitted to another or other companies in the cases of merger or division. In the latter case, that balance shall be divided between the company being divided and the companies being divided, in the proportion in which the accounting capital of the state of financial position approved by the shareholders ' meeting is carried out and which has been used as a basis for excision.

Article 78. The moral persons resident in Mexico who reduce their capital will determine the distributed utility, according to the following:

I.           It will be reduced from the refund per share, the balance of the capital account of the contribution per share that is to the date on which the reimbursement is paid.

The distributed utility will be the amount that will result from multiplying the number of actions that are reimbursed or those that have been considered for the reduction of the capital in question, as appropriate, in the amount resulting from the preceding paragraph.

The taxable distributed utility as determined in the preceding paragraph may come from the net tax utility account the amount of the balance of that account corresponds to the number of shares to be repaid. The amount of the net tax income account corresponds to the actions indicated, it will be reduced from the balance that the account has on the date on which the refund was paid.

When the taxable distributed utility to which this fraction refers does not come from the net tax utility, the (a) moral persons shall determine and find out the tax which corresponds to the rate provided for in Article 9 of this Law. For these purposes, the amount of the distributed utility shall include the income tax corresponding to it. To determine the tax that corresponds to that utility, it will be multiplied by the factor of 1.4286 and the result will be applied to the rate of Article 9 of this Law.

The amount of the contribution capital account balance per particular share for the calculation of the distributed utility it shall be multiplied by the number of shares which are reimbursed or for which they have been considered for the reduction of the capital in question. The result obtained will be reduced from the balance that the account has to the date on which the refund was paid.

To determine the amount of the contribution capital account balance per share the balance of that account will be divided into the the date on which the repayment is paid, without considering it, among the total shares of the same person existing at the same date, including those relating to reinvestment or the capitalization of profits, or any other concept which integrate the accounting capital of the same.

II.          The moral persons who reduce their capital, in addition, shall consider such a reduction as a distributed utility up to the amount resulting from subtracting the accounting capital according to the state of financial position approved by the shareholders ' assembly for the purpose of such a reduction, the balance of the capital account of the contribution that is made to the date of the reduction referred to when the reduction is less.

The amount that is obtained according to the previous paragraph will be reduced to the distributed utility determined in the terms of the second paragraph of section I of this article. The result will be the taxable distributed utility for the effects of this fraction.

Where the taxable distributed utility referred to in the preceding paragraph does not come from the net tax profit account, A moral person shall determine and find out the tax corresponding to that utility, applying to it the fee provided for in Article 9 of this Law. For these purposes, the amount of the taxable distributed utility must include the income tax corresponding to it. In order to determine the tax corresponding to that utility, the tax shall be multiplied by the factor of 1.4286 and the result shall be applied to the rate of Article 9 of this Law. Where the taxable distributed utility comes from the said net tax profit account, the third paragraph of Article 10 of this Law shall be the same and that utility shall be reduced from the balance of that account. The utility to be determined in accordance with this fraction shall be considered for subsequent capital reductions as a capital contribution in the terms of this article.

Accounting capital must be updated in accordance with the Financial Reporting Standards, when the person uses those principles to integrate his accounting; otherwise, the accounting capital shall be be updated in accordance with the general rules which the Tax Administration Service may issue for the purpose.

The moral persons referred to in this article must find out jointly with the tax which, if any, has been in the interest of the utility or dividend in the terms of section I of this article, the amount of the tax to be determined by the terms of the fraction II of the tax.

The provisions of this article will also be applicable in the case of the settlement of moral persons.

In the case of a division of companies, the provisions of this provision shall not apply, except as referred to in the tenth paragraph of this provision, provided that the sum of the capital of the company is, in the case of the subsidiary, and the companies being divided, is equal to the one held by the company and the shares which are issued as a result of those acts are exchanged to the same shareholders and in the same share of shares held in the Splinter company.

The provisions of this article will be applicable in the case of the purchase of shares, made by the issuing company itself, with its share capital or the reserve for acquisitions of its own shares. Such companies shall not consider profits distributed in the terms of this article, purchases of shares of their own added to those they have previously purchased, do not exceed 5% of the total of their shares, and provided that they are recollide within a maximum period of one year, counted from the day of the purchase. In the event that the acquisition of own shares referred to in this paragraph is made with resources that are obtained through the issuance of convertible bonds into shares, the time limit shall be that of the issuance of those obligations. The Tax Administration Service may issue rules of a general nature that facilitate compliance with the provisions of this paragraph. The provisions of this paragraph shall not be applicable in the case of investment companies of variable income for the purchase of shares which they carry out to their members or shareholders.

For the purposes of the preceding paragraph, the distributed utility shall be the amount that is obtained from decreasing to the amount that is paid for the acquisition of each of the shares, the balance of the capital account of the contribution per share to the date on which the shares are purchased, multiplying the result by the number of shares purchased. The utility distributed in the terms of this paragraph may be reduced, if any, the balance of the net tax utility of the issuing company. The amount of the balance of the net tax income account and the balance of the capital account of the contribution, which were decreased in the terms of this paragraph, shall be reduced from the balances of those accounts that are at the date of the purchase of actions by the issuing company itself.

When the distributed utility determined in accordance with the preceding paragraph does not come from the net tax profit account, the issuing company shall determine and find out the tax corresponding to the terms of the third paragraph of section II of this article.

It is also considered a reduction of capital in the terms of this article, the acquisition that a company makes of the shares issued by another company which in turn is direct or indirect of the shares in the acquiring company. In this case, it is considered that the issuing company of the shares that are acquired is the one that reduces its capital. For these purposes, the amount of the refund will be the amount that is paid for the acquisition of the stock.

In the case of a division of companies, the transfer of monetary assets to companies that arise on the basis of the division shall be considered as capital reduction, where such transfer originates in the companies that arise, the assets referred to represent more than 51% of their total assets. A capital reduction shall be considered where, on the basis of the division, the company is divided, it retains monetary assets representing more than 51% of its total assets. For the purposes of this paragraph, an amount equivalent to the value of the monetary assets that are transmitted is considered as capital reduction. The provisions of this paragraph shall not apply to divisions of companies, which are members of the financial system in the terms of Article 7 of this Law. The amount of capital reduction determined in accordance with this paragraph shall be considered for subsequent reductions as a capital contribution in the terms of this article, provided that no repayment is made at the time of the excision.

To determine the updated contribution capital, the moral persons shall carry a capital account of the contribution that will be added with the capital injections, the net premiums for subscription actions carried out by the shareholders or shareholders, and shall be reduced by the capital reductions that are made. For the purposes of this paragraph, the capital of contribution shall not be included as capital of reinvestment or capitalization of profits or of any other concept which, in accordance with the accounting capital of the moral person or reinvestment of dividends or capital increase profits of persons who distribute them within 30 days of their distribution. The concepts corresponding to capital increases referred to in this paragraph shall be added to the capital account of the contribution at the time they are paid and the concepts relating to capital reductions shall be reduced from that account. at the time the refund is paid.

The balance of the account provided for in the preceding paragraph, which is kept on the day of the closing of each financial year, shall be updated for the period from the month in which the last update was made and up to the month of closure of the financial year concerned. Where contributions or capital reductions are made after the update provided for in this paragraph, the balance of the account held at that date shall be updated for the period from the month in which the last account was taken. update and up to the month in which the contribution or reimbursement is paid, as appropriate.

When a merger or a division of companies occurs, the balance of the capital account of the contribution shall be transmitted to the companies that arise or which subsist on the basis of those acts, as appropriate. In the case of merger of companies, the balance of the capital account of the merging companies shall not be taken into account in the proportion in which the shares of those companies which are owned by those which remain at the moment of the merger, representing the total of its shares. In the case of a division of companies, that balance shall be divided between the breakaway company and the divided companies, in the proportion in which the accounting capital of the financial position approved by the shareholders ' meeting is divided and which has been used as a basis for excision.

In the case of merger, when the holding company of the shares of the company that disappears, the balance of the capital account of the company that subsidizes will be the amount that will result from the add to the balance of the capital account of the contribution that the subsidiary company had before the merger, the amount of the balance of the capital account of the contribution that corresponds to other shareholders of the company that disappears on the same date, different from the merging company.

When the company that subsidizes the merger is the company whose shares were held by a merged company, the amount of the capital account of the company that subsidizes will be the one that it had the merged company prior to the merger, in addition to the amount resulting from multiplying the balance of the capital account held by the merging company prior to the merger, by the shareholding held by the merging company and on the same date other shareholders other than the merged company.

When a moral person has increased his capital within a period of two years prior to the date on which the reduction of the capital is effected and is of origin to the cancellation of shares or to the decrease in the value of the shares, the moral person will calculate the profit that would have been paid to the holders of the shares to have been sold, in accordance with Article 22 of this Law, considering for these effects as income obtained by action reimbursement per share. Where the moral person merges within the period of two years referred to above and subsequently the moral person who subsidizes or arises on the occasion of the merger reduces his capital by giving rise to the cancellation of shares or the decrease in the value of the shares shares, the company concerned will calculate the profit that would have been paid to the holders of the shares to have them sold, in accordance with the aforementioned article. In the event that this gain is greater than the distributed utility determined according to fractions I and II of this article, such gain shall be considered as distributed utility for the purposes of this precept.

The provisions of this Article shall apply, without distinction, to reimbursement, amortization or reduction of capital, whether or not there is cancellation of shares.

The provisions of this article shall also apply to associations in participation where they make reimbursements or reductions of capital in favor of their members.

TITLE III

OF THE REGIME OF MORAL PEOPLE FOR NON-PROFIT PURPOSES

Article 79. They are not income tax payers, the following moral people:

I. Workers ' Unions and the organizations that group them together.

II. Employers ' associations.

III. Chambers of commerce and industry, agricultural, livestock, fishing or forestry groups, as well as the bodies that meet them.

IV. Colleges of professionals and the organizations that group them together.

V. Civil associations and limited liability companies of public interest that manage districts or irrigation units in a decentralized manner, prior to the respective grant and permission.

VI. Assistance or charitable institutions, authorized by the laws of the matter, as well as civil societies or associations, organized without For profit and authorized to receive donations in the terms of this Law, that have as beneficiaries persons, sectors, and regions with scarce resources; that they carry out activities to achieve better conditions of subsistence and development indigenous communities and vulnerable groups by age, sex or problems disability, dedicated to the following activities:

a) Attention to basic subsistence requirements for food, clothing, or housing.

b) Medical care or rehabilitation or care in specialized establishments.

c) Legal assistance, support and promotion, for the protection of the rights of minors, as well as for the social rehabilitation of people who have taken Conduct illicit conduct.

d) The rehabilitation of alcoholics and pharmacodependents.

e) The help for funeral services.

f) Social orientation, education, or training for the job.

g) Support for the development of indigenous peoples and communities.

h) Contribution of services to care for social groups with disabilities.

i) Promoting actions to improve the popular economy.

VII. Cooperative consumer societies.

VIII. Agencies that under the Law bring together cooperative societies, whether producers or consumers.

IX. Mutual Societies and Agricultural and Rural Assurance Funds, which do not operate with third parties, provided that they do not carry out business, such as prizes, commissions and other such.

X. Societies or associations of a civil nature that are dedicated to teaching, with authorization or with recognition of official validity of studies in the terms of the General Law of Education, as well as the institutions created by presidential decree or by law, the object of which is the teaching, provided that they are considered as institutions authorized to receive deductible donations in terms of this Act.

XI. Civil societies or associations engaged in scientific or technological research that are registered in the National Register of Scientific and Technological Institutions.

XII. Civil societies, organized non-profits and authorized to receive donations, dedicated to the following activities:

a) The promotion and dissemination of music, plastic arts, dramatic arts, dance, literature, architecture and cinematography, in accordance with the Law that creates the Institute National of Fine Arts and Literature, as well as the Federal Film Law.

b) Support for artistic education and research activities in accordance with the above paragraph.

c) The protection, conservation, restoration and recovery of the nation's cultural heritage, in the terms of the Federal Law on Monuments and Zones Archaeological, Artistic and Historical and the General Law of National Goods; as well as the art of indigenous communities in all the primitive manifestations of their own languages, the uses and customs, crafts and traditions of the composition pluricultural that make up the country.

d) The establishment and establishment of libraries that are part of the National Public Library Network in accordance with the General Library Law.

e) Support for the activities and objectives of the National Council for Culture and Arts-dependent museums.

XIII. Civil institutions or societies, constituted solely for the purpose of administering funds or savings banks, and those to which the labour law, as well as the cooperative savings and loan societies referred to in the Law to regulate the activities of cooperative savings and loan societies.

XIV. Associations of parents incorporated and registered under the terms of the Family Parents Associations Regulations of the General Law of the Education.

XV. Collective management companies incorporated in accordance with the Federal Law of Copyright.

XVI. Associations or civil societies organized for political purposes, or religious associations formed in accordance with the Law of Associations Religious and Public Cult.

XVII.      Associations or civil societies that grant scholarships, as referred to in Article 83 of this Law.

XVIII. Civil settler associations and civil associations exclusively engaged in the administration of a property property in condominium.

XIX.       Civil societies or associations, organized for non-profit purposes, which are exclusively constituted and operated for the purpose of carrying out research or preservation activities of the wild, terrestrial or aquatic flora or fauna, within the defined geographical areas indicated by the Tax Administration Service by means of general rules, as well as those that are exclusively constituted and operated to promote prevention and control among the population pollution of water, air and soil, protection of the environment and the environment preservation and restoration of ecological balance.

XX. Civil partnerships and societies, not for profit, that check that they are exclusively dedicated to the reproduction of species in protection and danger In addition to complying with the general rules issued by the Tax Administration Service, the Secretariat of the Environment and Natural Resources will be the subject of prior opinion.

XXI. Specialist retirement fund investment companies.

XXII. legally recognized political parties and associations.

XXIII. The Federation, the Federative Entities, the municipalities and the institutions that by Law are obliged to give to the Federal Government the full amount of its remnant of operation.

XXIV.    The decentralized agencies that do not contribute according to Title II of this Law.

XXV.     Assistance or charitable institutions, authorized by the laws of the field and organized for non-profit, as well as civil societies or associations, organized non-profit and authorized to receive donations in the terms of this Act, dedicated to the following activities:

a) Promoting the organized participation of the population in actions that improve their own living conditions for the benefit of the community or in the promotion of actions in the field of citizen security.

b) Support in the defense and promotion of human rights.

c) Civic, focused on promoting citizen participation in matters of public interest.

d) Promoting gender equity.

e) Support in the use of natural resources, protection of the environment, flora and fauna, preservation and restoration of ecological balance, as well as the promotion of sustainable development at regional and community level, in urban and rural areas.

f) Educational, cultural, artistic, scientific and technological promotion and promotion.

g) Participation in civil protection actions.

h) Provision of support services for the creation and strengthening of organizations that carry out activities under the Federal Law of Promotion of the activities carried out by civil society organisations.

i) Promotion and advocacy of consumer rights.

XXVI.    Sports associations recognized by the National Sports Commission, as long as they are members of the National Sports System, in terms of the General Law of Physical Culture and Sport.

The moral persons referred to by the fractions V, VI, VII, IX, X, XI, XIII, XVI, XVII, XVIII, XIX, XX, XXIV and XXV of this article, as well as the moral persons and trusts authorized to receive Tax deductible donations, and the investment companies referred to in this Title, shall be deemed to be distributable, even if they have not delivered them in cash or in assets to their members or members, the amount of the omissions of revenue or purchases not made and unduly registered; the fees they carry out and not are deductible in the terms of Title IV of this Law, except where such circumstance is due to the fact that they do not meet the requirements of Article 147 (IV) of the Act; loans to their members or members, or to the spouses, In the case of loans to the partners or members of the cooperative savings and loan companies referred to in the 13th fraction of this article, ascending or descending the right line of those members or members. In the case of loans which in the terms of this paragraph are deemed to be undistributable, their amount shall be reduced from the distributable balances that the moral person distributes to its members or members.

In the case where the remaining distributable is determined in the terms of the preceding paragraph, the moral person concerned shall find out the tax applicable to him as a tax on that charge. distributable, the maximum rate to be applied on the excess of the lower limit which establishes the tariff contained in Article 152 of this Law, in which case it will be considered as definitive tax, and must make the whole at the latest in the month of February of the year following that in which any of the the assumptions referred to in that paragraph.

Article 80. The moral persons referred to in the foregoing Article shall determine the distributable remainder of a calendar year corresponding to its members or shareholders, decreasing from the income earned in that calendar year. period, with the exception of those mentioned in Article 93 of this Law and those for which the definitive tax has been paid, the authorized deductions, in accordance with Title IV of this Law.

When the majority of the members or shareholders of these moral persons are taxpayers of Title II of this Law, the distributable remnant will be calculated by adding the income and decreasing the corresponding deductions in the terms of the provisions of that Title. When the majority of the members of these moral persons are Title IV, Chapter II, Section I of this Law, the distributable remnant will be calculated by adding the income and decreasing the corresponding deductions in the terms of that Section, as appropriate.

The members or shareholders of the moral persons referred to in Article 79 of this Law shall consider as a remnant distributable only the income that such persons give to them in cash or in goods.

The provisions of this Title shall be applicable in the case of investment companies referred to in the Investment Company Act, except in the case of capital investment companies. The members or shareholders of the investment companies referred to in this paragraph shall be taxpayers in accordance with the provisions of this Law.

The members or shareholders of the moral persons referred to in this Title shall not consider as income the reimbursements they make to them of the contributions they have made. For such purposes, the provisions of Article 78 of this Law shall be provided.

In the event that the moral persons referred to in this Title dispose of goods other than their fixed assets or provide services to persons other than their members or partners, they shall determine the tax applicable to the utility. for income derived from the activities referred to in Title II of this Law at the rate provided for in Article 9 of the Act, provided that such income exceeds 5% of the total income of the moral person in the financial year in question.

Moral persons and trusts authorized to receive tax-deductible donations may earn income from activities other than the purposes for which they were authorized to receive such donations, provided that they do not exceed 10% of the total revenue in the financial year in question. No income is considered for activities other than those for which they receive for donations; supports or stimuli provided by the Federation, federal entities, or municipalities; disposal of assets of their fixed or intangible assets; shares of its members; interests; property rights derived from intellectual property; use or temporary enjoyment of real estate, or income obtained from shares or other receivables, placed among the large public investor in the terms that are set by general rules to the Service Tax Administration. In the event that their income not related to the purposes for which they were authorized to receive such donations exceed the prescribed limit, the said moral persons shall determine the tax corresponding to that surplus, compliance with the provisions set out in the preceding paragraph.

Item 81. The moral persons referred to in this Title, with the exception of those referred to in Article 86 of this Law, of investment companies specialized in retirement funds and of moral persons authorized to receive donations. Deductible in the terms of the same, they will be income tax payers when they receive income from those mentioned in Chapters IV, VI and VII of Title IV of this Law, irrespective of the income referred to in the said Act. Chapter VI is collected in foreign currency. For these purposes, the provisions contained in that Title shall apply and the retention which shall be effected in the event of such a final payment shall be made.

The debt and equity investment companies referred to in Article 87 of this Act shall not be income tax payers when they receive income from those referred to in Chapter VI of Title IV of the This Law and its members or shareholders shall be as provided for in Articles 87, 88 and 89 of the same Law.

Article 82. The moral persons for non-profit purposes referred to by the fractions VI, X, XI, XII, XIX, XX and XXV of Article 79 of this Law shall comply with the following to be considered as institutions. authorized to receive deductible donations in the terms of this Law.

I.           That they are constituted and operated exclusively as entities that are dedicated to any of the purposes referred to by the fractions VI, X, XI, XII, XIX, XX and XXV of Article 79 of this Law and that, in accordance with the rules of a general nature that the Tax Administration Service may issue, a substantial portion of its revenue is received from funds provided by the Federation, federal entities or municipalities, donations or income derived from such funds. of the realization of its social object. In the case of entities to which an authorization is issued to receive foreign-deductible donations under international treaties, in addition to complying with the above, they will not be able to receive excessive amounts of income. concept of lease, interest, dividends or royalties or for activities not related to its social object.

II. That the activities they develop have as their primary purpose the fulfillment of their social object, without being able to intervene in political campaigns or engaging in propaganda activities.

III. The persons referred to in this Article may carry out activities intended to influence legislation, provided that such activities are not paid and are not paid in favor of persons or sectors that have granted them donations and, in addition, provide the Tax Administration Service with the following information:

a) The subject matter of study.

b) The legislation you intend to promote.

c) Lawmakers with whom promotion activities are performed.

d) The social, industrial, or branch of economic activity that would benefit from the proposal.

e) The materials, data, or information that you provide to the legislative bodies, clearly identifiable as to their origin and authorship.

f) The conclusions.

g) Any other related information that the Tax Administration Service determines by general rules.

IV. To allocate their assets exclusively for the purposes of their social object, not being able to grant benefits over the remaining distributable to a person physical or moral persons or their members, except in the latter case, of any of the moral persons or trusts authorized to receive tax deductible donations or the remuneration of services effectively received.

V. That at the time of its liquidation and on the occasion of its liquidation, the whole of its patrimony to entities authorized to receive donations deductibles.

VI.         Keep available to the general public the information regarding the authorization to receive donations, the use and destination that has been given to the donations received, as well as to the fulfillment of their tax obligations, and if necessary, the information referred to in section II of this Article, by the time limit and in terms of general rules of the Tax Administration Service.

VII.        Report to the tax authorities, through electronic means and formats, that the Tax Administration Service is indicated by rules of a general nature, no later than the 17th day of the immediate month after the one in which the operation of the donations received in cash in national or foreign currency, as well as in pieces of gold or silver, the amount of which is greater than one hundred thousand pesos.

The information referred to this fraction will be made available to the Secretariat of Finance and Public Credit, in the terms of the second paragraph of the Article 69 of the Tax Code of the Federation.

VIII.       Report to the tax authorities, in the terms indicated by the Tax Administration Service by means of general rules, of the operations they hold with related parties and of the services they receive or of the goods to acquire, from persons who have granted them deductible donations in the terms of this Law.

The requirements referred to in fractions IV and V of this article shall be stated in the constitutive writing of the moral person concerned with the character of irrevocable.

In all cases, authorized donatarias must comply with the requirements of administrative control and transparency, which in effect establish the Regulation of this Law and the general rules that the Tax Administration Service issue to the effect.

The Tax Administration Service may revoke or not renew the authorizations to receive deductible donations in the terms of this Law, to entities that fail to meet the requirements or obligations which, in their capacity as authorised donors, must comply with the tax provisions, by means of a decision notified in person. That unconcentrated organ shall publish the data of such entities in the Official Journal of the Federation and on its website.

For the purposes of the preceding paragraph, in the case of persons referred to in Articles 79, fractions VI, X, XII and XXV, and 84 of this Law, except for institutions of assistance or beneficence authorized by the laws of the matter, to which the authorization is revoked or not renewed, from the fact that the notification of the corresponding resolution takes its effects and in reason of this, they will be able to give donations to donatarias authorized without the limit laid down in Article 27, fraction I, applicable to them paragraph of this Law during the year in which the authorization is revoked or the authorization is not renewed.

Foundations, patronages, and other entities whose purpose is to financially support the activities of moral persons authorized to receive deductible donations in the terms of this Law, may obtain Deductible donations, provided they meet the following requirements:

a) Destinations the entire revenue for the purposes for which they were created.

b) Those set out in this article, except for the provisions of its I.

The requirement referred to in point (a) of the preceding paragraph shall be stated in the constitutive writing of the moral person concerned with the character of irrevocable.

Article 83. Associations or civil societies, which are intended to grant scholarships, may obtain authorization to receive deductible donations, provided that they meet the following requirements:

I.           That the grants are awarded to carry out studies in educational institutions that have the authorization or recognition of official validity of studies in the terms of the General Law of Education or, in the case of institutions of the abroad, they are recognized by the National Council of Science and Technology.

II.          That grants are awarded through open competition to the general public and their allocation is based on objective data related to the candidate's academic capacity.

III.         That they comply with the requirements referred to in Sections II to VIII of Article 82 of this Law.

Article 84. The business school programs established by institutions that are authorized by the tax authority, will be taxpayers of this tax and the institution that establishes the program will be responsible in solidarity with it.

The programs mentioned may obtain authorization to constitute themselves as independent companies, in which case they will consider that time as the start of activities.

The Tax Administration Service, by means of general rules, will establish the formal obligations and the way in which the provisional payments will be made, as long as these companies are considered within the business school programs.

The business school programs referred to in this article may obtain authorization to receive income tax deductible donations, provided that they meet the requirements referred to in this article. Article 82 of this Law, with the exception of the provisions of section I of the same article.

Article 85. For the purposes of Articles 79 and 88 of this Law, variable income investment companies that distribute dividends received from other companies shall be required to carry a net dividend account.

The account referred to in this article will be integrated with the dividends received from other moral persons resident in Mexico and will be reduced with the amount of the paid to its members, from that account. For the purposes of this article, no dividends are included in shares or reinvested in the subscription or capital increase of the same person who distributes them, within thirty days of their distribution. The account balance provided for in this article will be updated in the terms of Article 77 of this Act.

Article 86. The moral persons referred to in this Title, in addition to the obligations laid down in other articles of this Law, shall have the following:

I.           Carry out the accounting systems in accordance with the Federation's Fiscal Code, its Rules of Procedure and the Rules of Procedure of this Law and make records on the same in respect of their operations.

II.          To issue and collect the tax vouchers that credit the enajenations and relocations they carry out, the services they provide or the granting of the use or temporary enjoyment of goods.

III.         Present at the authorized offices no later than the 15th day of February of each year, declaration in which the distributable remnant is determined and the proportion of this concept corresponds to each member.

IV.         Provide your members with evidence and tax proof to indicate the amount of the remaining distributable, if any.

V.          To issue the constances and the tax voucher and to provide the information referred to in Article 76 (III) of this Law; to withhold and to find out the tax from third parties and to require the respective proof, when they do payments to third parties and are obliged to do so in the terms of this Law. They shall comply with the obligations referred to in Article 94 of the same Law, when making payments which are at the same time income in the terms of Chapter I of Title IV of this order.

Workers ' unions and the bodies that bring them together are relieved to comply with the obligations laid down in Sections I and II of this Article, except for those activities to be carried out by another person within the meaning of Article 16 of the Tax Code of the Federation. The persons referred to in Article 79 of this Law who do not determine the distributable balance are relieved to comply with the obligations referred to in paragraphs III and IV of this Article.

The persons referred to in the fractions V to XIX and XXV of article 79 of this Law, as well as the moral persons or trusts authorized to receive tax deductible donations and the companies of (a) the investment referred to in this Title shall provide an annual statement informing the tax authorities of the income obtained and of the charges made. Such declaration shall be submitted by 15 February of each year at the latest.

Parties and political associations, legally recognized, will have the obligations to retain and find out the tax and to require tax vouchers when making payments to third parties and are obliged to do so in the terms of law, as well as keeping accounting and preserving it in accordance with the Federation's Fiscal Code and its Rules of Procedure.

The Federation, the federal entities, the municipalities, and the institutions that are obliged to provide the Federal Government with the full amount of its remaining operational funds, will only have the obligations to retain and find out the tax and require tax vouchers when making payments to third parties and are obliged to them in terms of law.

Decentralized agencies that do not pay under Title II of this Act shall have only the obligations referred to in the preceding paragraph.

The political parties and associations, legally recognized, the Federation, the federal entities, the municipalities and the institutions that are obliged to provide the Federal Government with the amount of full of its remaining operational and the decentralised bodies which are not taxed under Title II of this Law are obliged to issue and deliver tax vouchers to persons receiving payment for wages and, in general, for the provision of a subordinate personal service, on the date on which it is carried out the corresponding erogation, which may be used as a proof or receipt of payment for the purposes of the labour law referred to in Articles 132 (VII) VII and VIII, and 804 first paragraph (II) and (IV) of the Federal Law of Job.

When a moral person is dissolved from those included in this Title, the obligations referred to in fractions III and IV of this Article must be fulfilled within three months of the dissolution.

Article 87. Investment companies in debt instruments referred to in the Investment Company Act shall not be income tax payers and their members or shareholders. accumulate the interest income earned in their favour by such companies.

The cumulative accrued interest income referred to in the preceding paragraph shall be in real terms for the natural and nominal persons for the moral persons, and shall be cumulative in the financial year in question. that the company accrues to the company, in the amount of such interest that corresponds to each of them according to its investment.

The interest accrued on behalf of the shareholders of the investment companies in debt instruments shall be the sum of the profits received for the disposal of their issued shares. for such companies and the increase in the valuation of their investments in the same company on the last working day of the financial year in question, in real terms for natural and nominal persons for moral persons, determined both as set out in Article 88 of this Law.

The moral persons who are members of such companies shall be in accordance with Chapter III of Title II of this Law in respect of investments made in this type of company.

The investment companies referred to in the first paragraph of this Article shall find out monthly, no later than the 17th of the month following the month in which the interest is due. tax, the tax referred to in Article 54 of this Law, which corresponds to its members or shareholders. Persons who pay interest to those companies shall be relieved to carry out the withholding tax referred to in Article 54 of this Law.

The monthly tax referred to in the preceding paragraph shall be the sum of the daily tax corresponding to the investment holding company's taxable investment portfolio and calculate as follows: in the case of securities whose yield is paid in full at the due date, resulting from multiplying the number of taxed securities of each species by their weighted average cost of acquisition multiplied by the the rate referred to in the Article referred to in the preceding paragraph and, in the case of other securities referred to in Article 8 of this Law, resulting from the multiplication of the number of titles taxed for each species at their nominal value, multiplied by the same rate.

The tax earned by investment companies in the terms of the preceding paragraph will be accreditable to their contributing members or shareholders of Title II and Title IV of the Act. against their provisional or final payments, provided that they accumulate to their other income from the financial year the interest earned on their investments in those investment companies.

To determine the credit retention for each member or shareholder, the investment companies in debt instruments shall divide the tax corresponding to the interest The number of shares in circulation at the end of each day is subject to daily tax. The amount of the daily tax per share shall be multiplied by the number of shares held by the shareholder at the end of each day. For this purpose, the amount of the tax credit must be settled in the statement of account, record, token or settlement notice that the effect is issued.

The variable income investment companies referred to in the Investment Company Act shall not be income tax payers and their members or shareholders shall apply to the income of these companies the regime that corresponds to its components of interest, dividends and profit by disposal of shares, as established in this article and other applicable of this Law.

The natural persons belonging to the companies referred to in the preceding paragraph will accumulate only the real interest taxed on their behalf by the same company, from of the debt securities held by the holding of that company, in accordance with the investment in it that corresponds to each of its members.

The part corresponding to the actual interest of the daily income earned in the exercise in favor of the individual physical person, will be calculated by multiplying the income determined according to the Article 88 of this Law by the factor that results from dividing the daily accrued interest on behalf of the investment company between the total daily income of the same company during the holding of shares by the shareholder. The total revenue shall include the valuation of the shareholding of the company's portfolio at the date of disposal of the action issued by the same company or on the last working day of the financial year concerned, as appropriate.

The moral persons or shareholders of the variable income investment companies shall determine the interest accrued in their favour for their investments in those companies. the gains received from the disposal of their shares and the increase in the valuation of their investments in the same company on the last working day of the financial year in question, in nominal terms, determined both types of income as set out in Article 88 of this Law, and will be in the provisions of the Chapter III of Title II of the same Law in respect of investments made in this type of company.

Variable income investment companies will make monthly withholding tax in the terms of Article 54 of this Law for the total of taxed interest that is shall be in their favour and shall enter it by the 17th day of the month following the month in which they are due. For these purposes, they shall be within the meaning of the sixth paragraph of this Article. The retention corresponding to each member of the company shall be determined in accordance with the eighth paragraph of this article and shall be accreditable to its members or shareholders contributing to Title II and Title IV of the Law against their provisional or final payments, provided that they accumulate to their other income from the financial year the interest earned on their investments in those investment companies. Persons who pay interest to those companies shall be relieved to carry out the withholding tax referred to in Article 54 of this Law.

The members or shareholders of the investment companies referred to in this Article and Article 88 of this order, who are natural persons, may in their case deduct the loss to be determined in accordance with the fifth paragraph of Article 134 of this Law, in the terms of that provision.

Article 88. The members or shareholders who are natural persons of the investment companies in debt instruments or of the variable income investment companies shall accumulate in the financial year the income they derive from the interest generated by the taxed instruments that are part of the portfolio of such companies under Article 87 of this Act. Such income shall be calculated by the companies, distributors or managers of the companies, as appropriate.

Natural persons who derive earnings from the disposal of shares issued by equity investment companies, the object of which is the acquisition and sale of assets investment with resources arising from the placement of the shares representative of its share capital between the investment public, as provided for in the Investment Companies Act, will determine the sum or decrease, as appropriate, of the profit or loss obtained in the financial year resulting from the disposal of shares in each investment company made by that natural person. Such persons shall be required to pay the income tax resulting from the application of the 10% rate to the gain obtained in the financial year. The tax paid shall be considered as final.

The gain or loss obtained by the taxpayer, arising from the disposal of shares in each investment company, will be determined by decreasing the price of the assets that are variable income investment on the date of sale of the shares of that investment company, the price of the assets that are the object of variable income investment at the date of acquisition, updated for the period from the date of acquisition and up to the date of sale.

When the updated acquisition price of the assets under variable income investment is higher than the price of the assets that are the subject of variable income investment on the date of sale, the difference shall be the amount of the loss in the operation in question.

In the case of investment companies that issue shares that represent in addition to the securities referred to in the first paragraph of Article 129 of this Law, other assets In the case of investments other than those, referring to currencies, rates, credits, goods traded, among others, both the purchase price of the assets subject to variable income investment and the sale price should not contain the proportion of the profit by disposal of shares corresponding to those goods, which will be the provisions of Article 82 of this Law.

When taxpayers generate loss in the financial year for the purposes of the actions referred to in the second paragraph, they may decrease such loss only against the amount of the profit which the same taxpayer obtains in the financial year or in the following ten for the purposes referred to in the second paragraph of this Article. The amount to be decreased by the losses referred to in this paragraph may not exceed the amount of such gains.

For the purposes of the preceding paragraph, losses shall be updated for the period from the month in which they occurred and up to the month of the end of the same financial year. The share of losses that are not reduced in one financial year shall be updated for the period from the month of the end of the financial year in which it was last updated and until the last month of the immediate period preceding the year in which the financial year ended. will be decreased.

When the taxpayer does not decrease the tax loss during an exercise and may have done so in accordance with this article, it will lose the right to do so in subsequent years and up to for the quantity in which you may have done so.

Taxpayers must make a statement of the profits made in accordance with the preceding paragraphs and, where appropriate, make the payment of the tax for the financial year, the which shall be delivered jointly to the annual declaration.

In the case of the cumulative real interest accrued by investment companies in variable income, the profit by disposal of shares as well as the increase in the real valuation of the holding of shares at the end of the financial year shall be determined in accordance with the provisions of the debt investment companies, but only by the proportion representing the income from dividends received and interest taxed from the company; in respect of the total of its revenue during the holding of shares by the shareholder or tax payer.

By means of general rules, the Tax Administration Service may issue provisions that simplify the determination of the cumulative interest by the members of the company variable income investment, based on a formula for the proportion of the total income of the company in respect of the taxed interest earned in its favour by debt securities and the earnings recorded by holding of shares exempt from the income tax during the period of holding of the shares by the its members. The Tax Administration Service may issue in general rules a pro-rata mechanism to simplify the calculation of taxable interest for investment companies in debt instruments that have in their portfolio securities exempt.

Article 89. The investment companies in debt instruments and variable income investment companies referred to in Articles 87 and 88 of this Law, through their operators, administrators or distributors, as the case may be, at the latest 15 of February of each year, they shall provide the members or shareholders thereof, as well as the financial intermediaries who carry the custody and management of the investments, on the record in which the following information is indicated:

I. The amount of nominal and real interest accrued by the company in favor of each of its shareholders during the financial year.

II. The amount of the withholding tax applicable to the member concerned, in the terms of Article 87 of this Law and, if applicable, the amount of the deductible loss in the terms of Article 88 of the same.

The investment companies referred to in this Article, through their operators, administrators or distributors, as they may be, must inform the Tax Administration Service at the latest. 15 February of each year, the data contained in the constances, as well as the average monthly balance of the investments in the company in each of the months of the financial year, for each person to whom they were issued, and the other information to be set in the form that the Administration Service issues to the effect Tax and shall be liable in solidarity for the omissions in the payment of taxes in which the members or shareholders of those companies may incur, when the information contained in the constances is incorrect or incomplete.

TITLE IV

OF PHYSICAL PERSONS

GENERAL PROVISIONS

Article 90. They are obliged to pay the tax established in this Title, the natural persons resident in Mexico who obtain cash income, in goods, accrued when in the terms of this Title I point out, in credit, in services in the cases that point out this Law, or any other type. They are also obliged to pay the tax, natural persons resident abroad who carry out business activities or provide independent personal services, in the country, through a permanent establishment, by income attributable to this.

Natural persons resident in Mexico are required to report, in the exercise declaration, on loans, donations and prizes, obtained in the same, provided that they, individually or as a whole, exceed $600,000.00.

The physical persons resident in Mexico must inform the tax authorities, through the means and formats that the Tax Administration Service may indicate by means of rules of general character, in respect of the amounts received by the concepts referred to in the preceding paragraph at the time of the annual declaration of the fiscal year in which they are obtained.

Not considered income earned by taxpayers, yields of goods delivered in trust, as long as such returns are only intended for scientific, political or religious purposes or to the educational establishments and to the institutions of assistance or beneficence, mentioned in section III of Article 151 of this Law, or to finance the education up to the bachelor's level of their descendants in a straight line, provided that the studies have official validity recognition.

When persons have debts or credits, in foreign currency, and gain exchange gain arising from the fluctuation of that currency, they will consider the income determined as income income provided for in Article 143 of this Law.

They are considered to be income obtained by the natural persons, those corresponding to them under Title III of this Law, as well as the amounts they receive to carry out expenses for the account of third parties, except that such expenses are backed by tax vouchers in the name of the person on behalf of whom the expenditure is incurred.

In the case of income from source of wealth located abroad, taxpayers will not consider them for the purposes of the provisional payments of this tax, except as provided for in Article 96 of this Law.

Natural persons residing in the country who change their residence for one calendar year to another country shall consider the provisional payments made as a final payment of the tax and shall not be entitled to make an annual declaration.

The taxpayers of this Title who conclude transactions with related parties are bound, for the purposes of this Act, to determine their cumulative income and their authorized deductions, considering, for those transactions, the prices and amounts of consideration that they would have used with or between independent parties in comparable transactions. In the opposite case, the tax authorities may determine the cumulative income and the authorized deductions of the taxpayers, by determining the price or amount of consideration in transactions between parties. In the case of such transactions, the prices and amounts of consideration that would have been used by independent parties in comparable transactions, by applying the methods provided for in Article 180 of this Law, these are with moral people, residents of the country or abroad, natural persons and permanent establishments in the country of foreign residents, as well as in the case of activities carried out through trusts.

Two or more persons are considered to be related parties, when one participates directly or indirectly in the administration, control or capital of the other, or when a person or group of persons participates, directly or indirectly. indirectly, in the administration, control or capital of such persons, or where there is a link between them in accordance with customs legislation.

Article 91. Natural persons may be the subject of the tax discrepancy procedure when it is established that the amount of the fees in a calendar year is higher than the income declared by the taxpayer, or or to which you have been entitled to declare.

For this purpose, it shall also be considered to be relocations made by any natural person, those consisting of expenses, acquisitions of goods and deposits in bank accounts, in financial investments or credit cards.

The fees referred to in the preceding paragraph shall be presumed to be income, in the case of natural persons who are not registered in the Federal Register of Contributors, or, which are standard, do not present the statements to which they are obliged, or who still present them, to declare minor income to the aforementioned erogations. In the case of taxpayers who are taxed in Chapter I of Title IV of this Law and who are not required to make an annual declaration, they shall be considered as income declared by the individuals who carry out the withholding tax.

No consideration will be given to deposits that the taxpayer makes in non-own accounts, which qualify as erogations in the terms of this article, when it is shown that such deposit was made as payment by the taxpayer. the acquisition of goods or services, or as consideration for the granting of the use or temporary enjoyment of goods or for making financial investments or transfers between the accounts of the taxpayer or to the accounts of his/her spouse, his/her ascendants or descendants, in a straight line in the first degree.

The income determined in the terms of this article, net of the declared, shall be deemed omitted by the preponderant activity of the taxpayer or, if applicable, other income in the terms of Chapter IX of this Title. in the case of loans and donations not declared or reported to the tax authorities, as provided for in the second and third paragraphs of Article 90 of this Law. In the case of a taxpayer who is not registered in the Federal Taxpayer Registry, the tax authorities shall also enter into Chapter II, Section I of this Title.

In order to know the amount of the amounts referred to in this Article, the tax authorities may use any information that they hold in their possession, either because it consists in their files, documents or databases, or because it was provided by a third party or other authority.

For the purposes of this article the tax authorities shall proceed as follows:

I. Will notify the taxpayer, the amount of the relocations detected, the information that was used to know them, the means by which it was obtained, and the discrepancy result.

II. Notified of the trade referred to in the above fraction, the taxpayer shall have a period of 20 days to inform the tax authorities in writing, counted from the day following the date of notification, the origin or source of provenance of the resources with which it made the detected erogations and shall, where appropriate, provide the evidence it deems appropriate to prove that the resources are not constitute taxable income in the terms of this Title. Tax authorities may, for a single time, require additional information or documentation from the taxpayer, which shall be provided by the term referred to in Article 53 (c) of the Tax Code of the Federation.

III.         Credited the discrepancy, this will be presumed to be taxed income and the respective liquidation will be formulated, considering as omitted income the amount of the erogations not clarified and applying the tariff previewed in article 152 of this Law, to the result thus obtained.

Article 92. Where the income of natural persons is derived from property in co-ownership, one of the co-owners shall be appointed as the common representative, who shall carry the books, issue the tax vouchers and collect the documents which determine the tax provisions, as well as comply with the tax withholding obligations referred to in this Law.

When two or more contributors are co-owners of a negotiation, the provisions of Article 108 of this Law will be in place.

Co-owners will respond in solidarity to the non-compliance of the common representative.

The provisions of the preceding paragraphs apply to members of the conjugal society.

The legal representative of the succession will pay in each calendar year the tax on behalf of the heirs or legatees, considering the income in a joint manner, until the end of the settlement of the succession. The payment made in this form shall be deemed to be final, unless the heirs or legal persons choose to accumulate the respective income corresponding to them, in which case they may prove the proportional share of the tax paid.

Article 93. No income tax will be paid for obtaining the following income:

I.           Benefits other than the salary received by workers in the general minimum wage for one or more geographical areas, calculated on the basis of that salary, where they do not exceed the minimum requirements laid down by the legislation In the case of a person who is not in employment, he or she is entitled to pay for a period of time, in the case of a person who is not entitled to work, or who is entitled to work. those workers. In the case of other workers, 50% of the remuneration for an extraordinary period of time or the provision of services to be carried out on rest days without any other replacement, which does not exceed the limit laid down in the labour law and without this exemption exceeding the equivalent of five times the general minimum wage for the geographical area of the worker for each week of service.

II. For the excess of the benefits excepted from the payment of the tax referred to in the previous fraction, the tax shall be paid in the terms of this Title.

III. Compensation for occupational risks or diseases, which are granted in accordance with the laws, for collective contracts of employment or for contracts Law.

IV. Retirements, pensions, retirement assets, as well as lifetime pensions or other forms of retirement, coming from the insurance sub-account retirement or retirement sub-account, old age and old age, provided for in the Social Security Law and those from the individual account of the retirement savings system provided for in the Law of the Institute of Social Security and Social Services (a) State workers, in the case of invalidity, incapacity, unemployment, old age, withdrawal and death, the daily amount of which does not exceed 15 times the general minimum wage of the geographical area of the taxpayer, and the benefit provided for in the Universal Pension Law. For the surplus the tax will be paid in the terms of this Title.

V. To apply the exemption on the concepts referred to in the above fraction, the entire pension and pension funds must be considered. paid to the worker concerned, regardless of who pays them. The excess shall be retained on the terms that the Regulation of this Law establishes.

VI. Those received on the basis of reimbursement of medical, dental, hospital and funeral expenses, which are granted in a general manner, in accordance with the laws or work contracts.

VII. Social security benefits that are granted by public institutions.

VIII. Those perceived on the grounds of disability benefits, educational scholarships for workers or their children, child care, cultural activities and sports, and other social welfare benefits, of a similar nature, which are granted in a general manner, in accordance with the laws or contracts of employment.

IX. The social forecast referred to in the previous fraction is the one set out in Article 7, fifth paragraph of this Law.

X. Delivery of contributions and their income from the individual account housing sub-account provided for in the Social Security Act, the sub-account of the Housing Fund of the individual account of the retirement savings system, as provided for in the Law of the Institute of Social Security and Social Services of State Workers or the Housing Fund for the members of the asset of the Army, Air Force and Navy, provided for in the Law of the Social Security Institute for the Mexican Armed Forces, as well as the houses provided to the workers, including by the companies when the requirements for deductibility of Title II of this Law or, where applicable, of this Title are met.

XI. Those coming from worker savings banks and savings funds established by companies for their workers when they meet the requirements the deductibility of Title II of this Law or, where applicable, of this Title.

XII. The social security quota of workers paid by employers.

XIII. Those who obtain the persons who have been subject to an employment relationship at the time of their separation, by age premiums, retirement, and compensation or other payments, as well as those obtained from the retirement insurance sub-account or the retirement sub-account, old age and old age, provided for in the Social Security Act and those obtained by the workers at the service of the Status of the individual account of the retirement savings system, provided for in the Law of the Institute of Safety and Social Services of the State Workers, and those who obtain by concept of the benefit provided in the Law of Universal Pension, up to the equivalent of ninety times the general minimum wage of the area the taxpayer's geographical scope for each year of service or contribution in the case of the retirement insurance sub-account, the retirement sub-account, the advanced age and old age guarantee or the individual account of the retirement savings system. The years of service shall be those considered for the calculation of the above concepts. Any fraction of more than six months shall be considered a full year. For the surplus the tax will be paid in the terms of this Title.

XIV. The gratifications that workers receive from their employers, during a calendar year, to the equivalent of the general minimum wage in the area the geographical area of the worker to 30 days, when such rewards are generally granted, as well as the holiday premiums that the employers give during the calendar year to their employees in general terms and the participation of the workers in the profits of companies, up to the equivalent of 15 days of the general minimum wage of the geographical area of the worker, for each of the concepts mentioned. For Sunday premiums up to the equivalent of a general minimum wage in the geographical area of the worker for each Sunday worked.

XV. For the surplus of the income referred to in the previous fraction the tax will be paid in the terms of this Title.

XVI. Remuneration for subordinate personal services perceived by foreigners in the following cases:

a) Diplomatic agents.

b) Consular agents, in the exercise of their duties, in cases of reciprocity.

c) Employees of foreign embassies, legations and consulates, who are nationals of the countries represented, provided there is reciprocity.

d) Members of official delegations, in the case of reciprocity, when they represent foreign countries.

e) Members of scientific and humanitarian delegations.

f) Representatives, officials and employees of international organizations with headquarters or office in Mexico, when they are established by the treaties or conventions.

g) Foreign technicians hired by the Federal Government, when this is provided for in the agreements concluded between Mexico and the country in which they are dependent.

XVII. The viatics, when effectively erogated in service of the pattern and check this circumstance with the corresponding tax vouchers.

XVIII. Those that come from lease contracts extended by law provision.

XIX. The derivatives of the disposal of:

a) The taxpayer's room, provided the amount of the consideration obtained does not exceed seven hundred thousand units of investment and the transmission is formalized before Public service. The surplus will determine the profit and the annual tax and the provisional payment in the terms of Chapter IV of this Title, considering the deductions in the proportion that results from dividing the surplus between the amount of the Obtained consideration. The calculation and integer of the tax corresponding to the provisional payment shall be made by the public servant in accordance with that Chapter.

The exemption provided for in this paragraph shall be applicable provided that during the five years preceding the date of the disposal in question the taxpayer does not Another house in which the exemption provided for in this paragraph would have been obtained, and manifest, in protest of truth, such circumstances before the public servant to whom the operation is protocoled.

The public purse must consult the Tax Administration Service through the Internet site of the unconcentrated organ and in accordance with the rules of the general nature of the effect of the latter, if the taxpayer has previously set up a house during the five years preceding the date of the disposal in question, for which he would have obtained the exemption provided for in that It shall give notice to the aforementioned unconcentrated organ of such disposal, indicating the amount of the consideration and, where applicable, the withholding tax.

b) Furniture, other than shares, of the social parts, securities and investments of the taxpayer, when in a calendar year the difference between the total of the enajenations and the proven cost of the acquisition of the goods in question, does not exceed three times the general minimum wage of the geographical area of the taxpayer elevated to the year. For the utility that exceeds the tax will be paid in the terms of this Title.

XX. Interest:

a) Paid by credit institutions, provided that they come from checking accounts, for the deposit of wages and salaries, pensions or for retirement assets or savings deposits, the average daily balance of the investment does not exceed 5 general minimum wages in the Federal District's geographical area, high per year.

b) Paid by savings and loan cooperative societies and by popular financial corporations, from investments whose average daily balance does not exceed 5 salaries General minimum geographical area of the Federal District, high per year.

For the purposes of this fraction, the average daily balance shall be that of dividing the sum of the daily balances of the investment between the number of days of the investment, without consider unpaid accrued interest.

XXI.       The amounts paid by insurance institutions to insured persons or to their beneficiaries when the risk is covered by the contracted policies and provided that they are not insurance related to fixed assets. In the case of insurance where the risk covered is the survival of the insured person, the income tax shall not be paid for the amounts paid by the insurance institutions to their insured persons or beneficiaries, provided that the compensation is pay where the insured person reaches the age of 60 years and, in addition, at least five years have elapsed since the date of the insurance contract and the time at which the compensation is paid. The provisions of this paragraph shall apply only where the premium is paid by the insured person.

The income tax will also not be paid for the amounts paid by insurance institutions to their insured persons or to their beneficiaries, who come from insurance contracts where the premium has been paid directly by the employer in favour of its employees, provided that the benefits of such insurance are paid solely for death, invalidity, loss of life or incapacity of the insured person to carry out paid personal work in accordance with the laws of social security and always in the case of insurance covering the death of the holder, the beneficiaries of that policy shall be the persons concerned with the holder referred to in Article 151 (I) of this Law and the other requirements laid down in this Law are met. Section XI of Article 27 of the same Law. The exemption provided for in this paragraph shall not apply in respect of the amounts paid by insurance institutions for dividends derived from the insurance policy or their collective.

The income tax shall not be paid for the amounts paid by insurance institutions to their insured persons or to their beneficiaries who come from life insurance contracts, where the person who pays the premium is different from that referred to in the preceding paragraph and that the beneficiaries of such insurance are paid for death, invalidity, loss of life or incapacity of the insured person for the purposes of perform a personal job.

The risk covered by the preceding paragraph shall be calculated taking into account all insurance policies covering the risk of death, invalidity, the insured person's loss of life or disability to perform a paid personal job in accordance with the social security laws, contracted for the benefit of the same insured by the same employer.

Dealing with the amounts paid by insurance institutions for retirement, pension or retirement, as well as insurance for medical expenses, shall be subject to the provisions of paragraphs IV and VI of this Article, as appropriate.

The provisions of this fraction shall apply only to the income of insurance institutions incorporated under Mexican law, which are authorised to organise and operate as such by the competent authorities.

XXII. Those that are received by inheritance or legacy.

XXIII.     The donations in the following cases:

a) Between spouses or those who perceive the descendants of their ascendants in a straight line, whatever their size.

b) Those who perceive the ascendants of their descendants in a straight line, provided that the goods received do not become or are donated by the ascendant to another Straight line descendant without degree limitation.

c) Other donations, provided the total value of those received in a calendar year does not exceed three times the overall minimum salary for the geographical area of the taxpayer raised per year. The surplus will be paid in the terms of this Title.

XXIV.    The prizes obtained on the occasion of a scientific, artistic or literary contest, open to the general public or to a certain guild or group of professionals, as well as the prizes awarded by the Federation to promote civic values.

XXV.     The compensation for damages that do not exceed the market value of the good in question. For the surplus the tax will be paid in the terms of this Title.

XXVI.    Those perceived as food by natural persons who have the character of food creditors in terms of the applicable civil law.

XXVII. withdrawals from the retirement sub-account, advanced age and old age of the individual account opened in the terms of the Insurance Act Social, by concept of aid for marriage and unemployment expenses. It will also have this treatment, the transfer of the resources of the individual account between the managers of funds for the retirement, between credit institutions or between both, as well as between these managers and institutions of insurance authorized to operate pension insurance derived from social security laws, with the sole purpose of hiring a life income and survival insurance under the social security laws and the Savings Systems Act for the Retirement.

XXVIII. Those arising from the alienation of the rights of the parcelaries, of the parcels on which the full domain or the common rights would have been adopted, always and where it is the first transmission carried out by the ejidatarios or communes and the same is carried out in the terms of the legislation of the matter.

The disposal referred to in this section must be made before the public purse, and the person concerned must prove that he is the holder of such rights. parcelaries or community members, as well as their quality of ejidatary or community by means of the certificates or corresponding titles referred to in the Agrarian Law.

In the event of failure to prove the quality of the ejidatary or community in accordance with the provisions of the preceding paragraph, or that it is not the first transmission The public purse shall calculate and enter the tax in the terms of this Title by the ejidatarios or comuneros.

XXIX.    Those obtained, up to the equivalent of twenty general minimum wages in the geographical area corresponding to the high taxpayer per year, for allowing third parties the publication of written works of their creation in books, newspapers or magazines, or the reproduction in series of recordings of musical works of their creation, provided that the books, newspapers or magazines, as well as the goods in which the recordings are contained, are destined for their alienation to the public by the the person making the payments for these concepts and whenever the creator of the work expunts for such revenue is the respective tax voucher. For the surplus the tax will be paid in the terms of this Title.

The exemption referred to in this fraction shall not apply in any of the following cases:

a) When you perceive this income, you also obtain from the person who pays the income from those listed in Chapter I of this Title.

b) When you perceive this income as a partner or shareholder in more than 10% of the social capital of the moral person making the payments.

c) When it comes to income derived from advertising ideas or phrases, logos, emblems, distinctive stamps, industrial designs, or designs operating or applied artwork.

The provisions of this fraction shall not apply where the proceeds are derived from the exploitation of the written or musical works of their creation in activities business other than the disposal of the public from their works, or in the provision of services.

The provisions of paragraphs XIX (b), XX, XXI, XXIII (c) and XXV of this Article shall not be applicable in the case of income from the business or professional activities referred to in the Chapter II of this Title.

The contributions made by employers and the Federal Government to the sub-account of retirement, advanced age and old age of the individual account that is constituted under the terms of the Social Security Act, as well as the contributions made to the individual account of the retirement savings system, in the terms of the Law of the Institute of Safety and Social Services of the State Workers, including the income they generate, shall be a cumulative income of the worker in the financial year in which they are provided or generated, corresponds.

The contributions made by employers, in the terms of the Law of the National Housing Fund for Workers, to the housing sub-account of the individual account opened in the the terms of the Social Security Act, and those made by the Federal Government to the sub-account of the Housing Fund of the individual account of the retirement savings system, in the terms of the Law of the Institute of Security and Social Services of State Workers, or the Housing Fund for the members of the asset of the Army, Air Force and Navy, provided for in the Law of the Social Security Institute for the Mexican Armed Forces, as well as the returns they generate, will not be a cumulative income of the worker in the exercise in which they are provided or generated, as appropriate.

The exemptions provided for in paragraphs XVII, XIX (a) and XXII of this Article shall not apply where the corresponding revenue is not declared in the terms of the third paragraph of the article 150 of this Law, being bound to it.

The exemption applicable to income earned by social forecast benefits will be limited when the sum of the income from the provision of personal services subordinated or those the members or members thereof and the amount of the exemption exceeds an amount equal to seven times the general minimum wage in the geographical area of the taxpayer, raised to the year; that sum exceeds the amount quoted, shall only be considered as income not subject to the payment of the tax an amount up to a general minimum wage of the geographical area of the taxpayer, raised to the year. This limitation shall in no case result in the sum of the income from the provision of personal services subordinated or those received by the cooperative societies, the members or members thereof and the amount of the exemption, be less than seven times the general minimum wage of the taxpayer's geographical area, raised per year.

The provisions of the preceding paragraph shall not apply to pensions, pensions, retirement assets, pensions for life, compensation for occupational risks or diseases, which are granted by (a) the laws, collective contracts of employment or contracts law, reimbursement of medical, dental, hospital and funeral expenses, granted in general in accordance with the laws or contracts of employment, insurance of medical expenses, insurance life and savings funds, provided that the requirements laid down in the Article 27 of this Law is not a contributor to the tax established in this Law, even if the person who grants the social welfare benefits is not a taxpayer.

CHAPTER I

OF WAGES AND SALARIES IN GENERAL FOR THE PROVISION OF A SUBORDINATE PERSONAL SERVICE

Article 94. They are considered to be income from the provision of a subordinate personal service, wages and other benefits resulting from an employment relationship, including the participation of employees in the profits of the companies and the benefits received as a result of the termination of the employment relationship. For the purposes of this tax, the following income shall be treated as:

I. Remuneration and other benefits, obtained by officials and employees of the Federation, federative entities and municipalities, even if they are for the purpose of expenses not subject to verification, as well as those obtained by members of the armed forces.

II. Yields and advances, obtained by members of cooperative production societies, as well as advances received by members of civil societies and associations.

III. The fees to members of management, supervisory, advisory or any other board nature, as well as the fees to administrators, stewards and general managers.

IV. Fees to persons who provide services preponderantly to a borrower, provided that the they are carried out on the premises of the latter.

For the purposes of the preceding paragraph, a person is understood to provide services preponderantly to a a borrower, where the income which he would have received from that borrower in the previous calendar year, represents more than 50% of the total of the revenue obtained by the concepts referred to in Article 100 (II) of this Regulation; Law.

Before the first payment of fees is made in the calendar year in question, the persons to This fraction shall communicate in writing to the borrower on whose premises the service is provided, if the income earned from that borrower in the preceding year exceeded 50% of the total of the received in that calendar year by the concepts referred to in Part II Article 100 of this Law. In the event that such communication is omitted, the borrower shall be obliged to hold the relevant holds.

V. The fees levied by the natural persons of moral persons or natural persons with business activities to which they provide independent personal services, when they communicate in writing to the borrower that they choose to pay the tax in the terms of this Chapter.

VI. The revenue collected by natural persons from moral persons or natural persons with business activities, for the business activities they perform, when they communicate in writing to the person making the payment that they choose to pay the tax in the terms of this Chapter.

VII. The income earned by natural persons for exercising the option granted by the employer, or a the related party, in order to acquire, including by subscription, shares or securities which represent goods, at no cost or at a price less than or equal to that of the market which have such shares or securities at the time of the financial year option, regardless of whether the shares or securities are issued by the employer or its related party.

The cumulative income shall be the difference between the market value of the shares or securities subject to the option, at the time the taxpayer exercises the option and the price established when the option is granted.

When the officials of the Federation, of the federal entities or of the municipalities, have assigned cars that do not meet the requirements of Article 36, fraction II of this Law, consider income in services, for the purposes of this Chapter, the amount that would not have been deductible for purposes of this tax of having been the taxpayer of the same person.

The income referred to in the preceding paragraph shall be calculated on the basis of the monthly income of the twelfth part of the amount resulting from the application of the maximum annual deduction per cent the amount to be deducted from the investments in cars, as if they had been deducted since the year in which they were acquired, as well as the maintenance and repair costs thereof.

The payment of the tax referred to in this article shall be made by means of the withholding tax made by the aforementioned moral persons.

It is estimated that the income provided for in this article is obtained in full by the person who performs the work. For the purposes of this Chapter, the credit income shall be declared and the tax applicable to them shall be calculated up to the calendar year in which they are charged.

Not to be considered income in goods, dining and dining services provided to workers nor the use of goods that the employer provides to workers for the performance of the activities their own, provided that, in the latter case, they are in accordance with the nature of the work provided.

Article 95. When income from seniority, retirement, and severance payments or other payments are earned, per separation, the annual tax will be calculated, according to the following rules:

I. Of the total perceptions for this concept, an equal amount will be separated from the last ordinary monthly salary, which will be added to the other the income from which the tax is payable in the calendar year in question and shall be calculated, in the terms of this Title, the tax corresponding to that income. Where the total of the perceptions is less than the last ordinary monthly salary, they shall be added in full to the other income for which the tax is to be paid and the fraction II of this article shall not apply.

II. The total of perceptions for this concept will be reduced by an amount equal to the last ordinary monthly salary and the result will be applied to the rate that corresponds to the tax that the previous fraction points out. The resulting tax shall be added to the tax calculated in accordance with the preceding fraction.

The rate referred to in the above fraction II shall be calculated by dividing the tax indicated in the above fraction I between the amount to which the tariff of Article 152 of this Law was applied; the The ratio thus obtained is multiplied by one hundred and the product is expressed in percent.

Article 96. Those who make payments for the concepts referred to in this Chapter are required to hold monthly deductions and integers that will be of the provisional payment character of the annual tax. No retention shall be made for persons who in the month only receive a general minimum wage corresponding to the geographical area of the taxpayer.

The retention will be calculated by applying to the entire revenue earned in one calendar month, the following:

Those who make payments for annual gratification, profit sharing, Sunday premiums and holiday premiums, will be able to hold the tax in accordance with the requirements that establish the Regulation of this Law; the provisions of that Regulation shall provide for the retention to be made of the other income obtained during the calendar year.

Those who make the retentions referred to in this article will have to deduct from the totality of the income earned in the calendar month, the local income tax on wages and in general the provision of a subordinate personal service which, where appropriate, would have been retained in the calendar month concerned, provided that the tax rate does not exceed 5%.

Dealing with fees to members of management, supervisory, advisory or any other board, as well as fees to administrators, commissioners and general managers, retention and As referred to in this Article, the amount resulting from the application of the maximum rate to be applied to the excess of the lower limit established by the tariff contained in Article 152 of this Law shall not be lower than the amount, except In addition, there is a working relationship with the retainer, in which case the terms of the second paragraph of this article.

Persons who make payments for the concepts referred to in Article 95 of this Law shall carry out the retention by applying to the total income for this concept, a rate that will be calculated by dividing the tax corresponding to the last ordinary monthly salary, between that salary; the ratio obtained shall be multiplied by one hundred and the product shall be expressed in percentage. When payments for these items are less than the last ordinary monthly salary, the retention will be calculated by applying the rate set forth in this article.

The natural persons, as well as the moral persons referred to in Title III of this Law, shall find out the holds referred to in this article by the 17th day of each of the months of the year of the year. the time schedule, by means of a declaration to the authorised offices.

Taxpayers who provide subordinate services to persons who are not required to carry out the withholding, in accordance with the last paragraph of Article 99 of this Law, and those who obtain income from by these concepts, they shall calculate their provisional payment in the terms of this precept and shall find out at the latest on the 17th day of each month of the calendar year, by means of a declaration which they shall submit to the offices authorized.

Article 97. Persons who are obliged to hold a withholding tax in accordance with Article 96 of this Law shall calculate the annual tax of each person who has provided him with subordinate personal services.

The annual tax will be determined by decreasing the entire income earned in a calendar year, by the concepts referred to in this Chapter, the local income tax and income tax. in general for the provision of a subordinate personal service which they would have retained in the calendar year. The result obtained will be applied to the tariff of article 152 of this Law. The tax payable by the taxpayer shall be credited with the amount of the provisional payments made in accordance with Article 96 of this Law.

The decrease in the local tax referred to in the preceding paragraph must be made by persons who are obliged to hold the withholding tax in accordance with Article 96 of this Law, provided that the such tax does not exceed 5%.

The difference resulting from the taxpayer in the terms of this Article shall be entered in the offices authorized at the latest in the month of February following the calendar year in question. The difference in favour of the taxpayer shall be offset against the retention of the month of December and subsequent deductions, at the latest within the subsequent calendar year. The taxpayer may ask the tax authorities for the return of the amounts not compensated, in the terms that the Tax Administration Service points out by means of general rules.

The retainer shall compensate the balances in favor of a taxpayer against the amounts withheld from the other persons to whom it makes payments that are income of those mentioned in this Chapter, always in the case of taxpayers who are not obliged to make an annual declaration. The retainer shall collect the proof of the amounts compensated for which the worker has paid the balance in favour.

Where it is not possible to compensate the balances in favour of a worker referred to in the preceding paragraph or only partially made, the worker may apply for the corresponding refund, provided that the retainer points out in the constancy referred to in Article 99 (III) of this Law, the amount that has been compensated for.

The calculation of the annual tax referred to in this Article shall not be made, in the case of taxpayers who:

a) Hayan initiated the provision of services after 1 January of the year in question or no longer providing services to the retainer before 1 December of the year year by which the calculation is performed.

b) Hayan earned annual revenue from the concepts referred to in this Chapter that exceed $400,000.00.

c) Communicate in writing to the retainer that they will present an annual statement.

Item 98. Taxpayers who earn income from those mentioned in this Chapter, in addition to making payments for this tax, shall have the following obligations:

I. Provide persons who make payments to them as referred to in this Chapter, the necessary data, for such persons to register them in the Federal Register of Contributors, or when they have already been previously enrolled, to provide their registration key to the employer.

II.          Request the constances referred to in Article 99 (III) of this Law and provide them to the employer within the month following that in which the service is to be provided, or where appropriate, to the employer who is carry out the calculation of the definitive tax or accompany them to its annual declaration. The employer shall not be required to make the settlement of the year.

III. Submit annual declaration in the following cases:

a) When you also get cumulative revenue other than those listed in this Chapter.

b) When written to the retainer that the annual declaration will be submitted in writing.

c) When they stop providing services before December 31 of the year in question or when services have been provided to two or more employers simultaneously.

d) When they obtain income, by the concepts referred to in this Chapter, from source of wealth located abroad or from persons not required to carry out the Withholding of Article 96 of this Law.

e) When you get annual revenue from the concepts referred to in this Chapter that exceed $400,000.00.

IV. Communicate in writing to the employer, before the employer makes the first payment to them for the provision of subordinate personal services in the year the calendar in question, if they provide services to another employer and the employer applies the employment allowance, so that it no longer applies again.

Article 99. Those who make payments for the concepts referred to in this Chapter shall have the following obligations:

I. Make the holds noted in Article 96 of this Act.

II. Calculate the annual tax of persons who have provided subordinate services to them, in the terms of Article 97 of this Law.

III. Exorder and deliver tax vouchers to persons receiving payments for the concepts referred to in this Chapter, on the date the erogation is performed which may be used as a proof or receipt of payment for the purposes of the labour law referred to in Articles 132 (VII) and VIII and (804), first subparagraph, fractions II and IV of the Federal Labour Law.

IV. Request, where appropriate, the constances and vouchers referred to in the previous fraction, to the persons who contract to provide subordinate services, at the latest within the month following that in which the provision of the service is initiated and to ensure that they are entered in the Federal Register of Taxpayers.

Additionally, they must ask the workers to notify them in writing before the first payment corresponding to them is made for the provision of services If you provide services to another employer and the latter applies the employment allowance, so that it no longer applies again.

V. To request people who hire to provide subordinate services, provide them with the necessary data to register them in the Register Federal Taxpayers, or when they have already been registered before, provide them with their key of the said register.

VI. Provide at the latest on 15 February each year, persons to whom they have been provided with subordinate personal services, constancy and proof of the total amount of the fees paid in the calendar year in question, for which the provisions of Article 93 (XVII) of this Law were applied.

VII. Submit, to the authorized offices no later than February 15 of each year, statement providing information about the persons who have exercised the option referred to in Article 94 (VII) of this Law in the previous calendar year, in accordance with the general rules that the Tax Administration Service may issue.

Except for the obligations referred to in this article, international organizations shall, when the respective treaties or conventions so establish, and foreign states.

CHAPTER II

OF REVENUE FROM BUSINESS AND PROFESSIONAL ACTIVITIES

SECTION I

OF PHYSICAL PERSONS WITH BUSINESS AND PROFESSIONAL ACTIVITIES

Article 100. They are obliged to pay the tax set out in this Section, the natural persons who receive income from the performance of business activities or the provision of professional services.

Natural persons residing abroad who have one or more permanent establishments in the country will pay income tax in the terms of this Section for income attributable to the same, derived from the business activities or the provision of professional services.

For the purposes of this Chapter are considered:

I.           Revenue from business activities, from the realization of commercial, industrial, agricultural, livestock, fishing or forestry activities.

II. Income from the provision of a professional service, remuneration resulting from an independent personal service and whose income is not considered in Chapter I of this Title.

It is understood that the income is obtained in full by people who perform the business activity or provide the professional service.

Article 101. For the purposes of this Section, they are considered to be income accruing from the performance of business activities or the provision of professional services, in addition to those mentioned in the previous article and in other articles of this Law, following:

I. Dealing with donations, quests or referrals, debts related to business activity or professional service, as well as debts referred to above to be paid on the basis of the creditor's action, the difference resulting from subtracting from the principal updated by inflation, the amount of the removal, remission or remission, at the time of its liquidation or restructuring, provided that the total settlement is less than the updated principal and is (

) the following: (a) the following:

In the case of donations, quests or referrals of debts granted by persons other than institutions of the financial system, the total amount will be accumulated in such donations, quests or referrals.

Taxpayers subject to a tender procedure, may decrease the amount of the debts forgiven under the agreement signed with their creditors recognised, in the terms laid down in the Law on Commercial Concourses, of the outstanding losses they have in the financial year in which they are forgiven by those creditors. Where the amount of the debt forgiven is greater than the outstanding tax losses, the resulting difference shall not be considered as a cumulative income unless the debt forgiven comes from transactions between and with parties. related to what is referred to in Article 179 of this Law.

II. Those arising from the disposal of accounts and documents receivable and from securities other than shares, related to activities referred to in this Chapter.

III. The amounts recovered by insurance, sureties or liabilities from third parties, in the case of losses of the taxpayer's property the business activity or the professional service.

IV. The amounts that are collected for the purpose of carrying out expenditure on behalf of third parties, unless such expenses are supported by tax vouchers issued to the name of the person on behalf of whom the expenditure is incurred.

V. The derivatives of the disposal of works of art made by the taxpayer.

VI. Those obtained by agents of credit, insurance, securities or securities institutions, securities promoters or fund managers for the retirement, for professional services provided to such institutions.

VII. Those obtained by operating a customs patent.

VIII. Those obtained by the exploitation of written works, photographs or drawings, in books, newspapers, magazines or on electronic pages via the Internet, or well, the reproduction in series of recordings of musical works and in general any other that derives from the exploitation of copyright.

IX. The interest charged on business activity or the provision of professional services, without any adjustment.

X. The returns that are made or the discounts or bonuses that are received, provided that the corresponding deduction was made.

XI. The gain derived from the asset disposal of the activity.

The income determined presumptively by the tax authorities, in cases where it comes under the Tax Code of the Federation, will be considered as cumulative income in the terms of this Section, where in the financial year in question the taxpayer preponderously receives income corresponding to business activities or to the provision of professional services.

For the purposes of the preceding paragraph, the taxpayer is deemed to receive income preponderantly for business activities or for the provision of professional services, when such income represent in the financial year in question or in the previous year more than 50% of the taxpayer's cumulative income.

The tax authorities will be able to determine the usefulness of the permanent establishments in the country of a resident abroad, based on the total profits of that resident, considering the a proportion of the income or assets of the establishments in Mexico representing the total income or assets, respectively.

Article 102. For the purposes of this Section, revenue is considered to be cumulative at the time it is actually received.

Income is effectively considered to be perceived when received in cash, goods or services, even if those correspond to advances, deposits or other concepts, regardless of the name with which they are designated. Income is also considered to be received when the taxpayer receives credit certificates issued by a person other than the person making the payment. Where the check is received, the revenue shall be deemed to be received on the date of receipt of the cheque or when the taxpayer transfers the checks to a third party, except where such transmission is in procurement. It is also understood to be effectively perceived when the interest of the creditor is satisfied by any form of extinction of the obligations.

In the case of the income referred to in Article 101 (1) of this Law, they shall be deemed to have been effectively received on the date on which the remission, the removal or the remission, or in the the prescription is consumed.

In the case of disposal of goods that are exported, the income must be accumulated when it is actually collected. In the event that the income is not received within the twelve months following the month in which the export is made, the income shall be accumulated after the expiry of that period.

Article 103. Natural persons who earn income from business activities or professional services may make the following deductions:

I. Returns that are received or discounts or bonuses that are made, as long as the corresponding income has been accumulated.

II. Goods acquisitions, as well as raw materials, semi-finished or finished products, used to provide services, to manufacture property or to alienate them.

Non-deductible in accordance with this fraction the fixed assets, land, shares, social parts, obligations and other transferable securities, the securities value representing the property of goods, other than certificates of deposit of goods or goods, foreign currency, gold or silver pieces which had the character of a national or foreign currency or the pieces denominated in an ounce troy.

In the case of income from the disposal of land and shares, the provisions of Articles 19 and 22 of this Law, respectively.

III. Expenses.

IV. Investments.

V. The interest paid on business or professional service, without any adjustment, as well as those generated by capital taken in loan as long as these funds have been invested in the purposes of the activities referred to in this Section and the corresponding tax voucher is obtained.

VI.         The fees paid by employers paid to the Mexican Social Security Institute.

VII. Payments made by local tax on income from business activities or professional services.

Dealing with natural persons residing abroad who have one or more permanent establishments in the country, may make deductions corresponding to the activities of the establishment permanent, whether they are the ones in Mexico or elsewhere, even if they are prorated with some establishment located abroad, applying the provisions of Article 26 of this Law.

The taxpayers referred to in this Section shall consider non-deductible expenses and investments in the financial year in accordance with Article 28 of this Law.

Article 104. The taxpayers referred to in this Section shall determine the deduction for investments by applying the provisions of Section II of Chapter II of Title II of this Law. For these purposes, investments are considered to be those mentioned in Article 32 of this Law.

For the purposes of this article, the hundreds of deduction shall apply to the original amount of the investment, even if it has not been paid in full in the financial year in which the deduction proceeds. When the original amount of the investment of the interest that is paid for the financing cannot be separated, the corresponding percentage will be applied to the total amount, in which case, the interest will not be deducted in the terms of section V of Article 103 of this Law.

Article 105. The deductions authorized in this Section, in addition to complying with the requirements set forth in other tax provisions, must include the following:

I. That they have actually been erogated in the exercise in question. They are considered to have been effectively made when the payment has been made in cash, by means of transfers of accounts in credit institutions or exchange houses, in services or in other goods other than receivables. In the case of payments by cheque, it shall be deemed to have been paid on the date on which the cheque was charged or when the taxpayer transfers the cheques to a third party, except where such transmission is in procurement. Similarly, they are considered to be in fact erogated when the taxpayer delivers credit claims subscribed by a different person. It is also understood that it is effectively rogated when the interest of the creditor is satisfied by any form of extinction of the obligations.

Where the payments referred to in the preceding paragraph are made by cheque, the deduction shall be made in the financial year in which it is charged, provided that the the date entered in the tax voucher that was issued and the date on which the cheque was actually charged has not elapsed more than four months.

It is presumed that the subscription of credit titles, by the taxpayer, various to the cheque, constitutes guarantee of the payment of the price or the consideration agreed by the business activity or by the professional service. In such cases, the payment shall be deemed to be received when it is actually carried out, or where the taxpayer transfers the amounts receivable to a third party, except where such transfer is in procurement.

In the case of investments, the investments must be deducted in the year in which their use is initiated or in the following year, even if in that financial year the original amount of the investment has not been fully revalued.

II. That they are strictly indispensable for obtaining the income for which the payment of this tax is required in the terms of this Section.

III. That when this Law permits the deduction of investments, it is necessary in the terms of Article 104 of this Law. In the case of leasing contracts, the requirements of Article 38 of this Law must also be met.

IV. To be subtracted only once, even if they are related to obtaining multiple revenue.

V. That insurance premium payments or sureties are made in accordance with the laws of the matter and correspond to concepts that this Act points to as deductibles or the obligation to hire them in other laws and provided that, in the case of insurance, during the life of the policy, no loans are granted by the insurer, to any person, with a guarantee of the insured sums, premiums paid or from the mathematical reserves.

VI. When the payment is made in instalments, the deduction will be made for the amount of the particionalities actually paid in the month or in the financial year corresponds, except for the deductions referred to in Article 104 of this Law.

VII.        That in the case of investments, they do not have fiscal effects on their revaluation.

VIII. When performing the corresponding operations or at the latest on the last day of the financial year, the requirements are met that for each particular deduction establishes this Law. In the case of only the tax vouchers referred to in the first subparagraph of Article 27 (III) of this Law, they shall be obtained at the latest on the day on which the taxpayer is required to present his declaration of the financial year and the date of issue of such tax voucher shall correspond to the financial year in which the deduction is made.

For the purposes of this section, the provisions of Article 27, fractions III, IV, V, VI, X, XI, XIII, XIV, XVII, XVIII, XIX and XXI of this Law shall be provided.

Article 106. The contributors referred to in this Section shall make provisional monthly payments on account of the tax for the financial year, at the latest on the 17th of the immediate month following that to which the payment corresponds, by means of a declaration that file with the authorised offices. The provisional payment shall be determined by subtracting all the revenue referred to in this Section from the period from the beginning of the financial year to the last day of the month to which the payment corresponds. authorized in this Section corresponding to the same period and the participation of the workers in the profits of the companies paid in the exercise, in the terms of Article 123 of the Political Constitution of the United Mexican States and, where appropriate, the tax losses incurred in previous years which have not been reduced.

The result that is obtained according to the previous paragraph, will be applied to the rate that is determined according to the following:

Article 96 of this Law will be used as a basis, adding the corresponding amounts to the columns relating to the lower limit, upper limit and fixed quota, than in the terms of that article. they are for each of the months of the period referred to in the provisional payment in question and corresponding to the same row identified by the same percentage for the excess of the lower limit. The tax authorities shall carry out the arithmetic operations provided for in this paragraph in order to calculate the applicable tariff and shall publish it in the Official Journal of the Federation.

Against the provisional payment determined in accordance with this Article, the provisional payments for the same financial year shall be credited.

When taxpayers provide professional services to moral people, they will have to withhold, as a provisional payment, the amount that will result from applying the 10% rate on the amount of the payments that will be paid to them. carry out, without deduction, the tax payer and the record of the withholding tax, which shall, where appropriate, be heard in conjunction with those referred to in Article 96 of this Law. The tax withheld in the terms of this paragraph will be accreditable against the tax payable resulting in interim payments in accordance with this article.

Article 107. Those who in the financial year are sporadically obtaining income from the provision of professional services and do not obtain other income taxed under this Chapter, will cover, as a provisional payment on account of the annual tax, the amount resulting from the application of the 20% levy on revenue received, without any deduction. The provisional payment shall be made by means of a declaration which shall be lodged with the authorised offices within 15 days after the entry has been obtained. These contributors shall be relieved of the obligation to carry books and records, as well as to present provisional statements other than those mentioned above.

The taxpayers referred to in the preceding paragraph shall submit an annual declaration under Article 152 of this Law and may deduct only the expenses directly related to the the provision of professional service.

Article 108. Where business activities are carried out through a co-ownership, the designated common representative shall determine, in the terms of this Section, the tax utility or tax loss, of such activities and shall comply with the all the co-owners of the obligations set out in this Law, including the obligation to make interim payments. For the purposes of the tax of the financial year, the co-owners shall consider the tax utility or the tax loss to be determined in accordance with Article 109 of this Law, in the proportional portion that corresponds to it and credit, in that the same proportion, the amount of provisional payments made by that representative.

Article 109. The taxpayers referred to in this Section shall calculate the tax for the year in charge of the tax in accordance with Article 152 of this Law. For these purposes, the tax utility of the financial year shall be determined by reducing all the cumulative income obtained by the business activities or by the provision of professional services, the deductions authorized in this Section, both for the financial year concerned. To the fiscal utility thus determined, the participation of the workers in the profits of the companies paid in the exercise, in the terms of Article 123 of the Political Constitution of the United Mexican States, will be diminished. Case, the tax losses determined in accordance with this article, pending to be applied from previous years; the result will be the taxable utility.

The tax loss will be obtained when the income referred to in this Section obtained in the year is less than the deductions authorized therein. The result obtained shall be added to the participation of the workers in the earnings paid in the financial year referred to in the preceding paragraph. In this case you will be the following:

I. The tax loss in an exercise may be reduced from the tax utility determined in the terms of this Section, from the ten financial years next, until exhausted.

For the purposes of this fraction, the amount of tax loss incurred in an exercise shall be updated by multiplying it by the update factor for the period from the first month of the second half of the year in which it occurred and until the last month of the same financial year. The part of the tax loss of previous years already up to date to be applied against tax profits shall be updated by multiplying it by the updating factor corresponding to the period from the month in which it was updated. for the last time and until the last month of the first half of the year in which it will apply.

For the purposes of the preceding paragraph, where the number of months of the financial year in which the tax loss occurred is to go unpunished, it shall be considered as the first month of the second half, the immediate month after which the half of the financial year corresponds.

When the taxpayer does not decrease in an exercise the tax loss incurred in previous years, being able to have done according to this article, it will lose the right to do so subsequently for the amount in which he was able to do so.

II. The right to reduce tax losses is a personal contributor to the taxpayer who suffers and cannot be transmitted by act between the living and the consequences of the disposal of the business. In the event of business activities, only by cause of death may the right to be passed on to the heirs or legal persons, who continue to carry out the business activities of which they derived the loss.

The tax losses incurred by taxpayers for the performance of the activities referred to in this Section may only be reduced from the tax profit arising from the activities themselves which refers to the same.

For the purposes of this Section, for the participation of workers in the profits of the companies, the taxable income referred to in Articles 123, fraction IX, (e) of the Political Constitution of the United Mexican States, 120 and 127, fraction III of the Federal Labor Law, will be the tax utility that results in accordance with this article.

For the determination of the taxable income in terms of employee participation in the profits of the companies, the taxpayers will have to reduce the cumulative income the amounts that are not have been deductible in the terms of the XXX fraction of Article 28 of this Law.

In the event that the taxpayer obtains income from business activities and professional services in the same financial year, it shall determine the taxable income that in terms of this Section corresponds to each of the activities in the individual; for these purposes, the same proportion as determined in the terms of the preceding article shall apply.

Article 110. Taxpayers individuals subject to the regime established in this Section, in addition to the obligations set forth in other articles of this Law and other provisions prosecutors, will have the following:

I. Apply for registration in the Federal Taxpayer Registry.

II. Carry accounting in accordance with the Fiscal Code of the Federation and its Rules of Procedure, dealing with natural persons whose income from the financial year in the case of non-surplus of two million pesos, shall bear their accounts and issue their vouchers in accordance with the terms of Article 112 (III) and (IV) of this Law.

Taxpayers resident in the country who have establishments abroad, for the purposes of fulfilling the obligations referred to in this Article The third and fifth of this article, in respect of such establishments, may do so in accordance with the provisions of Article 76 of this Law.

III.         Issue tax vouchers that credit the revenue they receive.

IV. Keep accounting and checking of the respective seats, as well as those required to prove that you have met the tax obligations, in accordance with the provisions of the Tax Code of the Federation.

V. Taxpayers who carry out business activities must formulate a financial position and inventory inventory at 31 of December of each year, in accordance with the respective regulatory provisions.

When the taxpayer starts or stops business activities, he/she must formulate a statement of financial position for each of the moments mentioned.

VI. In the annual statement to be presented, the tax utility and the amount corresponding to the participation of the workers in the earnings of the company.

Dealing with the statements referred to in section VII of this article, the information shall be provided through electronic means in the e-mail address that the Tax Administration Service points to through general rules.

VII. Submit and keep at the disposal of the tax authorities the information referred to in Section VI and Article 76 of this Law.

VIII. Exorder constances and tax vouchers in which they settle the amount of payments made that constitute income from source of wealth located in Mexico in accordance with the provisions of Title V of this Law or of the payments made to the establishments abroad of credit institutions of the country, in the terms of Article 48 of the Law and, where applicable, the tax withheld from the resident abroad or to the aforementioned credit institutions.

IX. Taxpayers who make payments for the concepts referred to in Chapter I of this Title shall comply with the obligations set forth in this Title. in the same.

X. Submit, in conjunction with the exercise statement, the information referred to in Article 76 (X) of this Act.

XI. Obtain and retain the documentation referred to in Article 76, fraction IX of this Law. This fraction shall not apply to taxpayers whose income in the previous immediate year has not exceeded $13 ' 000,000.00, except for those who are in the case referred to in the penultimate paragraph of the Article 179 of this Law. The exercise of the powers of verification in respect of this obligation may only be carried out for completed exercises.

SECTION II

TAX INCORPORATION REGIME

Article 111. Taxpayers who carry out only business activities, which dispose of goods or provide services for which they are not required for their professional qualification, may choose to pay the income tax in the the terms set out in this Section, provided that the revenue from its business activity obtained in the previous financial year had not exceeded the amount of two million pesos.

Taxpayers referred to in the preceding paragraph who initiate activities may choose to pay the tax in accordance with this Article, when they estimate that their income from the financial year is not exceed the limit to which it refers. Where, in the course of the financial year, transactions are carried out for a period of less than 12 months, in order to determine the amount referred to in the preceding paragraph, they shall divide the revenue expressed in the number of days covered by the period and the result shall be multiply for 365 days; if the amount obtained exceeds the amount of the amount quoted, in the following financial year, it cannot be taxed according to this Section.

You will also be able to apply the option set forth in this article, individuals who perform business activities by co-ownership, provided that the sum of all the co-owners ' income is the business activities carried out through the co-ownership, without any deduction, do not exceed the previous immediate financial year of the amount set out in the first paragraph of this article and that the individual's income each co-owner is responsible for such co-ownership, without any deduction, In addition to the income derived from sales of fixed assets owned by the same co-owner in the previous year, they would not exceed the limit referred to in the first paragraph of this Article.

They will not be able to pay the tax in the terms of this Section:

I. Members, shareholders or members of moral persons or when they are parties related to the terms of Article 90 of this Law, or where there is link in terms of that article with persons who have been taxed in the terms of this Section.

II. Taxpayers who perform activities related to real estate, real estate, real estate, or financial activities, except in the case of those who only obtain income for the performance of promotional or demonstration events to customers for the purchase of homes or dwellings, and such customers are also persons non-performing acts of construction, development, refurbishment, improvement or sale of houses or dwellings.

III. Natural persons obtaining income as referred to in this Chapter by commission, mediation, agency, representation, brokerage, entry and distribution, except in the case of persons who receive income from mediation or commission concepts and who do not exceed 30% of their total income. The retentions that moral persons make to them for the provision of this service are considered as definitive payments for this Section.

IV.         The natural persons who obtain income as referred to in this Chapter by public spectacles and franchisors.

V. Taxpayers who perform activities through trusts or joint participation.

The taxpayers referred to in this article will calculate and enter the tax in a bimonthly form, which will have the final payment character, no later than the 17th of the months of March, May, July, September, November and January of the following year, by means of a declaration that they will present through the systems provided by the Tax Administration Service on their website. For these purposes, the fiscal utility of the two-year period concerned shall be determined by subtracting from all the revenue referred to in this Article obtained in that period of cash, in goods or services, the deductions authorized in the Law which is strictly indispensable for obtaining the income referred to in this Section, as well as the amounts actually made in the same period for the acquisition of assets, expenses and deferred charges and the participation of workers in the profits of the companies paid in the financial year, in the Article 123 of the Political Constitution of the United Mexican States.

When the income received is less than the corresponding period, taxpayers should consider the difference between the two concepts as deductibles in the periods. next.

For the purposes of employee participation in the profits of the companies, in terms of this Section, the taxable income referred to in Articles 123, fraction IX, (e) of the Political Constitution of the United Mexican States, 120 and 127, fraction III of the Federal Labor Law, will be the tax utility that results from the sum of the tax profits obtained in each two-year period.

For the determination of the taxable income in terms of employee participation in the profits of the companies, the taxpayers will have to reduce the cumulative income the amounts that are not have been deductible in the terms of the XXX fraction of Article 28 of this Law.

To determine the tax, taxpayers in this Section will consider revenue when they are effectively charged and will deduct the erogations actually made in the exercise for the acquisition of fixed assets, expenses, or deferred charges.

For the tax utility that is obtained under the fifth paragraph of this article, the following applies:

The tax to be determined may be reduced in accordance with the percentages and according to the number of years that are taxed under the scheme provided for in this Section, according to the following:

Against the reduced tax, no credit or rebate can be deducted for exemptions or subsidies.

Taxpayers who choose to apply the provisions of this Section will only be able to remain in the regime that provides for the same, for up to ten consecutive fiscal years. Upon completion of that period, they shall be taxed under the scheme of natural persons with business and professional activities as referred to in Section I of Chapter II of Title IV of this Law.

Article 112. The contributors subject to the scheme provided for in this Section will have the following obligations:

I. Apply for registration in the Federal Taxpayer Registry.

II.          Preserve vouchers that meet tax requirements, only when a tax voucher has not been issued for the operation.

III.         Register in the electronic means or systems referred to in Article 28 of the Federation's Fiscal Code, the revenue, expenditure, investments and deductions for the financial year concerned.

IV.         Deliver tax-proof customers to their customers. For these purposes, taxpayers may issue such vouchers using the electronic electronic invoice generation service tool found on the website of the Administration Service. Tax.

V.          Make the payment of the fees related to your purchases and investments, the amount of which is greater than $2,000.00, by check, credit card, debit or services.

The tax authorities may release from the obligation to pay the fees through the means set out in the preceding paragraph, when they are they are carried out in populations or in rural areas which do not have financial services.

VI.         Submit, by the end of the 17th day of the immediate month following that to which the payment corresponds, the bimonthly declarations in respect of which the tax is to be determined and paid in accordance with the provisions of this Section. The bimonthly payments referred to in this section shall be as definitive.

VII.        In the case of wages for wages, taxpayers shall be required to hold the holds in the terms of Chapter I of Title IV of this Law, in accordance with the provisions laid down therein and in their Rules of Procedure, and (a) to apply twice a month, on the 17th of the immediate month following the end of the two-month period, the whole of the income tax of its employees in conjunction with the corresponding bimonthly declaration. For the calculation of the bimonthly retention to which this fraction refers, the rate of Article 111 of this Law shall apply.

VIII. Pay income tax in the terms of this Section, provided that, in addition to meeting the requirements set forth in this Section, present in form In the statement referred to in the fifth paragraph of Article 111 of this Law, the data of the income obtained and the fees made, including investments, as well as the information of the operations with its suppliers in the immediate bimestre previous.

Where the statement referred to in the preceding paragraph is not present within the prescribed period of time twice in a row or five times during the period of time 6 years as provided for in Article 111 of this Law, the taxpayer shall no longer be taxed in the terms of this Section and shall be taxed in the terms of the general scheme governing Title IV of this Law, as appropriate, from the following month to the one in which he had to present the information.

Taxpayers who have paid the tax as provided for in this Section, will change options, must, as of the date of the change, comply with the obligations under the scheme. corresponding.

When the income of the business activity obtained by the taxpayer in the period since the beginning of the financial year and up to the month in question exceeds the amount indicated in the the first paragraph of Article 111, or where any of the cases referred to in the second paragraph of section VIII of this Article are present, the taxpayer shall no longer be taxed in accordance with this Section and shall carry out such payment on the terms of this Law in the corresponding scheme, from the month following that in which the exceeded the amount quoted or the statement referred to in the fifth paragraph of Article 111 of this Law, as the case may be, was presented.

When taxpayers are no longer taxed under this Section, they may not be taxed again in any case.

Taxpayers who are taxed in the terms of this Section, and who have their tax domicile in populations or in rural areas, without Internet services, will be able to be released from complying with the make statements, and record their transactions through the Internet or in electronic means, provided that they comply with the requirements that the tax authorities point out by means of general rules.

Article 113. When taxpayers complete the entire negotiation, assets, expenses and deferred charges, the acquirer may not be taxed in this Section, and must do so under the applicable regime under this Law.

The property owner must accumulate income from the disposal of such assets and pay the tax in the terms of Chapter IV of Title IV of this Law.

CHAPTER III

LEASE INCOME AND IN GENERAL FOR GRANTING THE USE OR TEMPORARY ENJOYMENT OF REAL ESTATE

Article 114. The following are considered revenue from granting the use or temporary enjoyment of real estate:

I. Those arising from the lease or sublease and in general for the consideration of the use or temporary enjoyment of immovable property in any way another form.

II. Non-depreciable real estate participation certificate yields.

For the purposes of this Chapter, credit income shall be declared and the tax applicable to them up to the calendar year in which they are charged.

Article 115. People who earn income from the concepts referred to in this Chapter may make the following deductions:

I. Payments made for the calendar year corresponding to the calendar year on such buildings, as well as for local contributions from improvements, planning or cooperation for public works affecting the same and, where applicable, the local tax paid on revenue for the purpose of granting the temporary use or enjoyment of immovable property.

II.          Maintenance costs that do not involve additions or improvements to the good in question and water consumption, provided that they are not paid by those who use or enjoy the property.

III. Real interest paid for loans used for the purchase, construction or improvement of real estate, as long as it obtains the Corresponding tax voucher. It is considered to be of real interest the amount in which such interest exceeds the annual adjustment for inflation. In order to determine the actual interest, the provisions of Article 134 of this Law shall apply.

IV.         The wages, commissions and fees paid, as well as the taxes, fees or contributions that under this Law correspond to them on such wages, effectively paid.

V. The amount of insurance premiums that will cover the respective assets.

VI. Investments in constructs, including additions and enhancements.

Taxpayers who grant the use or temporary enjoyment of real estate may choose to deduct 35% of the income referred to in this Chapter, replacing the deductions to which this article is refers. Those who exercise this option may also deduct the amount of the fees for the pre-dial tax on such buildings corresponding to the calendar year or the period during which the income was obtained in the year corresponds.

Trying to sublease only the amount of rent that the tenant pays to the lessor.

When the taxpayer occupies part of the immovable property from which it proceeds to grant the use or temporary enjoyment of the property or grant its use or temporary enjoyment free of charge, it may not deduct expenditure, as well as the pre-dial tax and the cooperation rights of public works which correspond proportionally to the unit for the occupation or the one granted free of charge. In the case of subleasing, the sub-lessor may not deduct the proportional share of the amount of paid income corresponding to the unit which he or she holds or which he grants free of charge.

The proportional share referred to in the preceding paragraph shall be calculated by considering the number of square metres of construction of the unit by the occupied or granted free of charge in relation to the total square metres of construction of the immovable property.

Where the use or temporary enjoyment of the good in question has not been granted for the entire financial year, the deductions referred to in fractions I to V of this Article shall apply only when correspond to the period for which the use or temporary enjoyment of the immovable property was granted or to the immediate three months prior to the use or enjoyment of such use.

Article 116. Taxpayers who obtain income from those mentioned in this Chapter for the granting of the use or temporary enjoyment of immovable property shall make the monthly interim payments or quarterly, not later than the 17th day of the immediate month after which the payment corresponds, by means of a declaration to the authorised offices.

The provisional payment will be determined by applying the corresponding rate as provided for in the third paragraph of Article 106 of this Law, to the difference that results from decreasing to the month's income or of the quarter, for which the payment is made, the amount of the deductions referred to in Article 115 thereof, corresponding to the same period.

Taxpayers who only obtain income from those mentioned in this Chapter, whose monthly amount does not exceed ten general minimum wages in force in the Federal District for the month, will be able to make interim payments on a quarterly basis.

Trying to sublease, only the deduction for the amount of the month or quarter income that the sublandlord pays to the lessor will be considered.

When the income referred to in this Chapter is obtained by payments made by the moral persons, they shall retain as a provisional payment the amount resulting from the application of the 10% rate on the the amount of the same, without any deduction, and must provide the taxpayers with any withholding tax and proof of tax; such withholding taxes shall, where appropriate, be heard in conjunction with those referred to in Article 96 of this Law. The tax withheld in the terms of this paragraph may be credited against the tax resulting in accordance with the second paragraph of this article.

Article 117. In the trust operations for which the use or temporary enjoyment of real estate is granted, the income is considered to be income of the trustee even if the trustee is a different person, except for the irrevocable trusts in which the trustee does not have the right to reacquire the immovable property, in which case the income of the trustee is considered to be the income of the trustee from the moment the trustee loses the property. the right to reacquire the immovable property.

The fiduciary institution shall make interim payments on behalf of the person to whom the performance corresponds in the terms of the preceding paragraph, during the months of May, September and January of the following year, by means of a declaration to be lodged with the authorised offices. The provisional payment shall be the amount resulting from the application of the 10% fee on the income of the previous quarter, without any deduction.

The trust institution shall provide at the latest by 31 January each year to those who correspond the yields, the tax voucher of those returns; the provisional payments made and the deductions, corresponding to the previous calendar year.

Article 118. Taxpayers who earn income from those listed in this Chapter, in addition to making payments for this tax, shall have the following obligations:

I. Apply for registration in the Federal Taxpayer Register.

II. Carry accounting in accordance with the Fiscal Code of the Federation and its Rules of Procedure. Those who opt for the 35% deduction referred to in Article 115 of this Law do not fall within the provisions of this section.

III. Exorder tax vouchers for the consideration received.

IV. Present interim and annual statements in the terms of this Law.

V. Report to the tax authorities, through electronic media and formats, that the Service of Tax administration by means of general rules, not later than the 17th of the immediate month following that in which the operation is carried out, of the consideration received in cash, in national currency, as well as in pieces of gold or of silver, the amount of which is greater than a hundred thousand pesos.

The information referred to this fraction will be made available to the Secretariat of Finance and Public Credit, in the terms of the second paragraph of Article 69 of the Tax Code of the Federation.

When the income referred to in this Chapter is received through trust operations, it shall be the trust institution that carries the books, issues the tax vouchers and carries out the provisional payments. The persons to whom the income corresponds must apply to the trust institution and the voucher referred to in the last paragraph of the previous article, which shall accompany their annual declaration.

CHAPTER IV

OF REVENUE BY DISPOSAL OF GOODS

SECTION I

OF THE GENERAL REGIME

Article 119. They are considered to be income from the disposal of goods, resulting from the cases provided for in the Fiscal Code of the Federation.

In cases of permuse, there will be two enajenations to be considered.

The amount of the consideration obtained, including credit, shall be considered to be entered on the occasion of the disposal; when, by the nature of the transmission, there is no consideration, it shall be treated as (a) a person who is authorised by the tax authorities.

Not to be considered income from disposal, which results from the transfer of ownership of property by reason of death, donation or merger of companies or those resulting from the disposal of bonds, of securities and other receivables, provided that the income from the disposal is considered to be of interest in the terms of Article 8 of this Law.

Article 120. Persons who obtain income from the disposal of goods may make the deductions referred to in Article 121 of this Law; with the gain thus determined the annual tax shall be calculated as follows:

I. The gain shall be divided between the number of years between the date of acquisition and the date of disposal, not exceeding 20 years.

II. The result that is obtained according to the previous fraction, will be the portion of the gain that will be added to the other cumulative income of the year of the calendar in question and shall be calculated, in the terms of this Title, the tax corresponding to the cumulative revenue.

III. The portion of the non-cumulative gain will be multiplied by the tax rate that is obtained under the following paragraph. The resulting tax shall be added to the tax calculated in accordance with the preceding fraction.

The taxpayer may choose to calculate the rate referred to in the preceding paragraph, in accordance with the provisions of either of the two following:

(a) The fee to be applied pursuant to Article 152 of this Law shall be applied to the entire cumulative income obtained in the year in which the disposal, reduced by the deductions authorised by the Law itself, except those laid down in Sections I, II and III of Article 151 thereof. The result thus obtained will be divided between the amount to which the rate was applied and the ratio will be the rate.

b) The average rate that results from adding the calculated rates as provided in the preceding paragraph for the last five financial years, including that in the that the disposal was carried out, divided among five.

Where the taxpayer has not earned a cumulative income in the four years prior to the disposal, the average rate referred to in the preceding paragraph may be determined. with the tax that he would have had to pay to have accumulated in each exercise the part of the profit for the disposal of goods referred to in the fraction I of this article.

When the payment is received in partial tax, the tax corresponding to the part of the non-cumulative profit can be paid in the calendar years in which the income is actually received, provided that the The time limit for obtaining it is greater than 18 months and the tax interest is guaranteed. To determine the amount of the tax to be entered in each calendar year, the tax calculated according to the part III of this article will be divided, between the total income of the disposal and the ratio will be multiplied by the income effectively received in each calendar year. The resulting amount will be the amount of tax to be entered by this concept in the annual declaration.

Article 121. Natural persons who obtain income from the disposal of goods may make the following deductions:

I. The proven acquisition cost that will be updated in the terms of Article 124 of this Act. In the case of real estate, the updated cost shall be at least 10% of the amount of the disposal in question.

II. The amount of investments made in buildings, improvements and extensions, when property or certificates of participation are in place unamortised real estate. These investments do not include conservation expenses. The amount will be updated in the terms of Article 124 of this Act.

III. Notary expenses, taxes and duties, by deed of acquisition and disposal, as well as the local tax for income from disposal of real estate, paid by the enajenante. Payments made on the basis of the property of immovable property shall be deductible.

IV. The commissions and mediations paid by the enajenante, on the occasion of the acquisition or the disposal of the good.

The difference between the income from disposal and the deductions referred to in this article, shall be the gain on which, following the procedure laid down in Article 120 of this Law, the tax.

The deductions referred to in fractions III and IV of this Article shall be updated for the period from the month in which the respective erogation was made and until the immediate month before the end of the month. the one in which the disposal is performed.

When taxpayers make the deductions referred to in this Article and suffer losses in the disposal of real estate, shares, certificates of equity issued by companies National credit and social partners may reduce such losses in the calendar year in question or in the following three, in accordance with Article 122 of this Law, provided that they are in the case of shares or certificates of (i) the financial contribution of the European Commission to the European requirements to be set by the Regulation of this Law. The part of the loss which is not deducted in an exercise, except for the part of the disposal of immovable property, shall be updated for the period from the month of the end of the financial year in which the loss was incurred or was last updated. and up to the last month of the immediate financial year preceding the year in which it is deducted.

Article 122. Taxpayers who suffer losses in the disposal of real estate, shares, social parts or certificates of equity issued by national companies credit, such losses shall be reduced in accordance with the following:

I. The loss shall be divided between the number of years between the date of acquisition and the disposal of the good in question; of years exceeding ten years, shall be considered only ten years. The result shall be the part of the loss which may be reduced from other income, except for the income referred to in Chapters I and II of this Title, which the taxpayer is required to accumulate in the annual declaration of that same year or in the following three calendar years.

II. The portion of the undiminished loss in accordance with the preceding fraction shall be multiplied by the tax rate corresponding to the taxpayer in the year of the timetable for the loss; where the declaration of that year does not result in tax, the rate corresponding to the following calendar year shall be considered to be imposed, without exceeding three. The result obtained in accordance with this fraction may be credited in the calendar years referred to in the preceding fraction, against the amount resulting from the application of the tax rate corresponding to the year in question to the total of the gain from the disposal of goods to be obtained in the same year.

The rate referred to in Part II of this Article shall be calculated by dividing the tax which would have been the responsibility of the taxpayer in the annual declaration in question, between the amount to which it is applied the rate of Article 152 of this Law to obtain such a tax; the ratio thus obtained will be multiplied by one hundred and the product is expressed in percent.

When the taxpayer in a calendar year does not deduce the portion of the loss referred to in the above fraction I or does not perform the credit referred to in the second part of this article, Having done so, you will lose the right to do so in subsequent years up to the amount you could have done.

Article 123. The acquisition cost shall be equal to the consideration that has been paid to acquire the good, not including the interest and the fees referred to in the previous article; the goods have been acquired either free of charge or by merger or division of companies, shall be subject to the provisions of Article 124 of this Law.

Article 124. To update the proven cost of acquisition and, where applicable, the amount of deductible investments, dealing with real estate and non-equity certificates Writable, proceed as follows:

I. It will be subtracted from the proven cost of acquisition, the part corresponding to the land and the result will be the cost of construction. Where this separation cannot be carried out, 20% of the total cost shall be considered as cost of the land.

II. The cost of construction shall be reduced by 3% per year for each year between the date of acquisition and the date of disposal; This cost will be less than 20% of the initial cost. The resulting cost shall be updated for the period from the month in which the acquisition was made and until the immediate month preceding the month in which the disposal is carried out. Improvements or adaptations involving deductible investments shall be subject to the same treatment.

In the case of movable property other than securities and social parts, the cost shall be reduced by 10% per year, or by 20% in the case of transport vehicles, for each year elapsed between the date (a) the acquisition and disposal. The resulting cost shall be updated for the period from the month in which the acquisition was made and until the immediate month preceding the month in which the disposal is carried out. Where the years elapsed are more than 10, or 5 in the case of transport vehicles, there shall be no cost of purchase.

The taxpayer may, provided it complies with the requirements set out in this Law, not decrease the cost of acquisition according to the years elapsed, dealing with movable property that does not lose value over time and without prejudice to updating that cost in the terms of the preceding paragraph.

In the case of land the acquisition cost shall be updated for the period from the month in which the acquisition was made and until the immediate month preceding the month in which the acquisition was made. disposal.

Dealing with shares, the average cost per share will be calculated in accordance with the provisions of Article 22 of this Law; in the case of the disposal of shares of investment companies to which the Articles 87 and 88 of that order shall be subject to the provisions of those provisions.

Dealing with assets acquired by inheritance, legacy or donation, will be considered as cost of acquisition or as an average cost per share, as appropriate, the one paid by the author of the succession or the the donor, and as the date of acquisition, the date of the acquisition. Where the author of the succession or the donor has acquired such goods for free, the same rule shall apply. In the case of the donation for which the income tax has been paid, it shall be considered as cost of purchase or as an average cost per share, as appropriate, the value of the value that has been used to calculate the tax and as a date of acquisition of the one in which the tax was paid.

In the case of merger or division of companies, it will be considered as a proven cost of acquiring the shares issued as a result of the merger or the division, as appropriate, the average cost per The action taken under the terms of Article 23 of this Law corresponded to the shares of the merging or breakaway companies, at the time of the merger or division.

Article 125. Taxpayers may apply for the practice of an endorsement by a public broker entitled or credit institution, authorized by the tax authorities. Those authorities shall be entitled to practise, order or take into account the value of the goods which are the subject of disposal and where the value of the value exceeds 10% of the consideration agreed to by the disposal, the total of the difference being consider the entry of the acquirer in the terms of Chapter V of Title IV of this Law; in which case, its cost shall be increased with the total of the difference cited.

Dealing with values that are those that are placed among the large investor public, in accordance with the general rules that the Tax Administration Service will issue, when they are put out the stock market, the tax authorities will consider the stock market price of the last event of the day of the disposal, rather than the value of the guarantee.

Article 126. Taxpayers who obtain income from the disposal of immovable property shall make a provisional payment for each transaction, applying the rate determined in accordance with the following paragraph to the amount obtained from dividing the profit between the number of years between the date of acquisition and the date of disposal, not exceeding 20 years. The result that is obtained under this paragraph will be multiplied by the same number of years in which the profit was divided, the result being the tax corresponding to the provisional payment.

The rate applicable for the calculation of the provisional payments to be made in the terms of this Article shall be determined on the basis of the tariff of Article 96 of this Law, adding the amounts corresponding to the columns relating to the lower limit, upper limit and fixed quota, which in the terms of that article are for each of the months of the year in which the disposal is carried out and corresponding to the same identified row per cent to be applied on the excess of the lower limit. For months of the same year, after the month in which the disposal is carried out, the monthly rate to be considered for the purposes of this paragraph shall be equal to that of the month in which the disposal is carried out. The monthly tax authorities shall carry out the arithmetic operations provided for in this paragraph in order to calculate the applicable tariff in that month, which shall be published in the Official Journal of the Federation.

In transactions recorded in public writings, the provisional payment shall be made by means of a declaration which shall be submitted within 15 days of the date on which the writing or minuteis signed. Notaries, brokers, judges and other fedarios, who have notarial functions by law, will calculate the tax under their responsibility and will find it in the authorized offices; they must also provide the taxpayer with carry out the relevant operation, in accordance with the general rules of the Tax Administration Service, the information relating to the determination of that calculation and shall issue a tax voucher, including the operation, as well as the withheld tax that was learned. Such fedatarios, within the fifteen days following that in which the deed or minute is signed, in the month of February of each year, shall submit to the authorized offices, the information which the effect establishes the Fiscal Code of the Federation with respect to operations performed in the previous immediate exercise.

Dealing with the disposal of other goods, the provisional payment will be in the amount that will result from applying the rate of 20% on the total amount of the transaction, and will be retained by the acquirer if it is resident in the country or resident abroad with permanent establishment in Mexico, except in cases where the person who has written the person in writing to the acquirer who made a minor provisional payment and provided that the requirements to be laid down by the regulation of this law. In the event that the acquirer is not resident in the country or is resident abroad without permanent establishment in Mexico, the enajenante will enter the corresponding tax by declaration that he will present to the authorized offices within 15 days after obtaining the entry. In the case of the disposal of shares in the investment companies referred to in Articles 87 and 88 of this Law, the provisions of that provision shall be as laid down in that provision. In the case of the sale of shares through the Mexican Stock Exchange, which is granted under the terms of the Securities Market Law, the provisions of Article 56 of this Law will be included. In all cases, tax proof shall be issued in which the total amount of the transaction shall be specified, as well as the withholding tax.

When the acquirer carries out the withholding tax referred to in the preceding paragraph, it shall issue a tax proof to the person and record the person, and the person shall accompany a copy of those documents when submitting his or her annual declaration. The retention and provisional payment referred to in the preceding paragraph shall not be made, in the case of miscellaneous movable property of securities or of social parts, and the amount of the transaction shall be less than $227,400.00.

Taxpayers who earn income from the assignment of rights to non-depreciable real estate participation certificates or from housing certificates or from the rights of the trustee or trustee, which they are placed on immovable property, they shall calculate and find out the provisional payment in accordance with the first two paragraphs of this Article.

The moral persons referred to in Title III of this Law, with the exception of those mentioned in Article 86 thereof and those authorized to receive deductible donations in the terms of the Articles 27, fraction I and 151, fraction III, of this Law, that dispose of real estate, shall make interim payments in the terms of this article, which shall be of a definitive payment.

Article 127. Regardless of the provisions of Article 126 of this Law, taxpayers who dispose of land, buildings or land and buildings shall make a payment for each operation, applying the 5% rate on the gain obtained in the the terms of this Chapter, which shall be entered by a declaration to be lodged with the authorized offices of the federal entity in which the property in question is located.

The tax paid in the terms of the preceding paragraph shall be credited against the provisional payment made for the same transaction in the terms of Article 126 of this Law. Where the payment referred to in this Article exceeds the provisional payment determined in accordance with that provision, only the tax resulting from this Act shall be entered in accordance with Article 126 of this Law to the federal entity concerned.

In the case of transactions entered in public writings, notaries, brokers, judges and other fedatarios, which by law have notarial functions, shall calculate the payment referred to in this Article. the article under his or her responsibility and will find it in the authorized offices referred to in the same period referred to in the third paragraph of Article 126 of this Law, and shall issue a tax proof, in which the amount of the operation, as well as the withheld tax that was learned.

Taxpayers who exercise the option referred to in the last paragraph of Article 120 of this Law shall apply the 5% rate on the gain to be determined in accordance with that paragraph in the the financial year in question, which shall be entered by a declaration to be filed with the federal entity on the same payment dates as set out in Article 150 of this Law.

The payment made under this article will be accreditable against the tax of the year.

Article 128. Taxpayers who obtain income from the disposal of goods, must inform the tax authorities, through electronic means and formats, that they indicate the Tax Administration Service by means of rules of character at the latest by the 17th of the immediate month following the month in which the operation is carried out, of the consideration received in cash in national or foreign currency, as well as in pieces of gold or silver, the amount of which is greater than 100 thousand pesos. Those rules of general character may lay down assumptions where the information referred to in this Article is not necessary.

The information referred to in this article will be available to the Secretariat of Finance and Public Credit, in the terms of the second paragraph of Article 69 of the Fiscal Code of the Federation.

SECTION II

OF THE STOCK EXCHANGE ON STOCK EXCHANGE

Article 129. Natural persons shall be required to pay the income tax, the payment of which shall be considered as final, applying the 10% rate to the profit earned in the year derived from:

I.           The disposal of shares issued by Mexican companies or of securities that represent exclusively those shares, when their disposal is carried out on the markets of the concessionary securities or derivatives markets recognized in the terms of the Securities Market Act or shares issued by foreign companies listed on such stock exchanges or derivatives markets.

II.          The disposal of securities that represent equity indices in the stock exchanges or derivatives markets referred to in the previous fraction.

III.         The disposal of shares issued by Mexican companies or of securities that represent exclusively such shares, provided that the disposal of the shares or securities cited is carried out in stock exchanges or derivatives markets located in recognized markets referred to in section II of Article 16-C of the Fiscal Code of the Federation of countries with which Mexico has a treaty in force to avoid double taxation.

IV.         Financial operations derived from capital referred to shares placed in stock exchanges in accordance with the Securities Market Act, as well as those relating to stock indexes representing those securities. actions, provided that they are carried out on recognised markets as referred to in Sections I and II of Article 16-C of the Tax Code of the Federation.

The profit or loss obtained in the year shall be determined, added or decreased, as appropriate, by the profit or loss arising from the disposal of shares in each issuing company or of securities which represent shares or stock indices carried out by the taxpayer or which they obtain in derivative financial transactions carried out through each of the intermediaries on the market securities with which it operates or foreign financial institutions with which it has a broker contract.

The gains or losses arising from the disposal of shares and securities referred to in the previous fractions I to III shall be determined by each company Issuing or titles representing such indices as follows:

a) It will be reduced to the sale price of the shares or securities, decreased with the commissions by concept of intermediation paid for their disposal, the cost the average acquisition, added to the commissions by concept of intermediation paid for its acquisition, which will be calculated by dividing the amount actually paid, by the purchase of shares or titles, between the number of shares or titles effectively purchased.

This average acquisition cost will be updated from the acquisition date to the immediate month before the date the sale of the shares in securities exchanges or recognised derivatives markets.

When the acquisition cost is higher than the sales price, the difference will be the amount of the loss in the transaction in question.

b) In the case of operations of loans of shares or securities made in accordance with the legal provisions governing the stock market on the stock exchanges (a) the value of the securities issued in respect of the sale of the securities to which the securities are held or the markets for recognised derivatives, the profit of the borrower arising from the disposal of the shares or the markets for derivatives recognised as a third of the shares or shares will determine the decrease in the updated sales price of the shares or securities, the proven cost of acquiring the shares of the same broadcaster or the securities it acquires on the agreed securities exchanges or derivatives markets during the term of the respective contract to settle the transaction with the lender. For these purposes, it may be included in the proven cost of acquisition, the cost of the shares that, if any, the borrower acquires by virtue of profit capitalizations or other items of the accounting capital that the issuing company has been decreed during the term of the contract. The amount equivalent to the dividends paid by the issuing company for the shares which are the subject of the loan may also be part of that proven cost of acquisition when the dividends are paid by a third party other than the the borrower and the latter restituthem to the lender by way of property rights. The sale price of the shares or securities may be reduced to the amount of the fees charged by the intermediary for the loan operations of the shares or securities, their disposal, their acquisition and the settlement of the loan.

When the borrower does not fully or partially acquire the shares or securities it is required to deliver to the lender within the time limit set in the contract, the profit for the disposal shall be determined, in respect of the shares or shares not acquired, falling from the updated sale price of the shares or securities, the price of the average stock exchange listing or market of derivatives of shares or securities on the last day on which, under the contract held, it should have been restored to the lender. The amount equivalent to the dividends paid by the issuing company may also be reduced from that selling price by the non-acquired shares which are the subject of the loan during the period which they have been lent, when the dividends are charged by a third party other than the borrower and the latter is restituted to the lender by way of property rights. The sale price of the shares or securities may be reduced to the amount of the fees charged by the intermediary for the loan operations of the shares or securities, their disposal and the settlement of the loan.

The sale price of the shares or securities shall be updated from the date on which the disposal of those shares or securities received in loan and up to the date on which the borrower acquires or has acquired them, as appropriate, to settle the loan transaction.

When the proven cost of acquisition is higher than the sales price, the difference will be the amount of the loss in the operation in question.

In the event that the borrower does not return the lender, within the prescribed time limits, the shares or securities it has given him on loan, consider that such shares or securities have been disposed of by the lender to the borrower on the date on which they were to be returned. For these purposes, the lender's gain shall be determined in accordance with paragraph (a) of this paragraph, considering as the selling price of the shares or securities subject to the contract its average stock exchange price or market share price. recognised derivatives, on the last day on which they were acquired by the borrower. Also, it will be considered that they do not have an average acquisition cost for the shares that the lender of the borrower in excess of which he lent at the beginning of the contract, due to the issuance of shares by capitalization of profits or other Member of the accounting capital, which the issuing company has decreed for the duration of the contract.

In the case of financial transactions derived from capital referred to shares placed in stock exchanges in accordance with the Securities Market Act, as well as those relating to indices shares representing such shares, provided that they are carried out on the recognised markets referred to in Sections I and II of Article 16-C of the Tax Code of the Federation, the result shall be determined in accordance with the Article 20 of this Act.

Financial institutions authorized under the Securities Market Act to act as securities market intermediaries that intervene in the securities or transactions referred to in the first paragraph of this article, shall make the calculation of the profit or loss of the financial year. The information relating to that calculation shall be given to the taxpayer for the purposes of payment of the income tax referred to in this Article. In the event of a tax loss in the financial year, securities market intermediaries shall issue to the natural persons a record of such loss. For the purposes of the delivery of the information referred to in this subparagraph, securities market intermediaries shall issue the relevant constances by means of a broker contract, provided that they contain in detail all the information required for compliance with the obligations set out in this Article.

Where the stock market broker contract concluded between the taxpayer and the securities market intermediary concludes before the end of the tax year in question, the intermediary must calculate the profit or loss generated during the period in which the contract was in effect for the year and to deliver the information referred to in the preceding paragraph. Where the taxpayer changes the stock market intermediary, they shall be obliged to forward to the new intermediary all information relating to the contract, including the securities or transactions referred to in the first subparagraph of this Agreement. the article which it has made during the financial year in question. Securities market intermediaries performing the transfer of a taxpayer's account shall be required to provide to the intermediary of the receiving securities market the information of the average cost of shares or securities acquired by the taxpayer. the taxpayer updated to the date on which the transfer is made. The securities market intermediary that receives the transfer of the account shall consider such information for the calculation of the average acquisition cost of the shares or securities when their disposal is carried out.

Taxpayers who carry out the operations or operations referred to in the first paragraph of this Article, through intermediary contracts with foreign financial institutions that do not are authorised under the Securities Market Act, shall calculate the tax gain or loss for the financial year and, where applicable, the tax applicable, as well as have at the disposal of the tax authority the statements of account in which they are Note the information necessary for the calculation of the gains or losses derived from the disposal carried out in each of the months of the financial year concerned.

Where the taxpayer referred to in the preceding paragraph replaces a foreign financial institution with a securities market intermediary, they shall forward the new contract intermediary to the new all the information relating to his contract, including the securities or transactions referred to in the first paragraph of this Article made by such contributors, in order for the intermediary to carry out the calculation of the gain or loss fiscal year.

When taxpayers generate loss in the financial year for the purposes or transactions referred to in this Section, they may decrease such loss only against the amount of the gain that in their case (a) obtain the same taxpayer in the financial year or in the following 10 for the purposes or transactions referred to in the first paragraph of this Article. The amount to be decreased by the losses referred to in this paragraph may not exceed the amount of such gains.

For the purposes of the preceding paragraph, losses shall be updated for the period from the month in which they occurred and up to the month of the end of the same financial year. The share of losses that are not reduced in one financial year shall be updated for the period from the month of the end of the financial year in which it was last updated and until the last month of the immediate period preceding the year in which the financial year ended. will be decreased.

When the taxpayer does not decrease the tax loss during an exercise and may have done so in accordance with this article, it will lose the right to do so in subsequent years and up to the amount in which may have done so.

Taxpayers must submit a statement for the proceeds obtained under this Section and make, where appropriate, the payment of the tax for the financial year, which must be delivered in a manner together with the annual declaration referred to in Article 150 of this Law.

The Tax Administration Service through general rules may establish mechanisms to facilitate the calculation, payment and integer of the tax referred to in this article.

Natural persons who derive earnings from the disposal of shares issued by specialized investment companies of retirement funds, when such disposal is recorded in stock exchanges securities granted in the terms of the Securities Market Act, shall not pay the income tax referred to in this article.

The provisions of this Article shall not apply, so that the tax shall be paid and entered in accordance with the other provisions applicable to the disposal of shares provided for in this Title:

1.          To the disposal of shares or securities which are not considered to be placed between the large investor public or the holding of transactions referred to in Sections I, II, III and IV of this Article, the acquisition of which is not performed on recognised markets as referred to in Sections I and II of Article 16-C of the Tax Code of the Federation, with the exception of when they are placed on the stock exchange of approved securities, shares or securities which are considered to be placed, between large investor public, provided that the securities which are disposed of, by means of one or more simultaneous or successive operations over a period of 24 months, in no case represent more than 1% of the shares in circulation of the company issuing the shares, and which in no case does the alienating of the shares or the securities in the assumptions contained in the following number 2.

In such cases the enajenant of the shares or securities shall be obliged to provide the intermediary of the securities market to intervene in the disposal, the information required to determine the gain or loss in the operation.

2.          Where the person or group of persons, directly or indirectly, has 10% or more of the shares representative of the social capital of the issuing company, as referred to in Article 111 of the Securities Market Act, in a period of (a) 24 months in the case of 10% or more of the shares paid by the company concerned, by one or more simultaneous or successive transactions, including those which are carried out by means of financial transactions resulting from or from any other analogous or similar nature. It shall also not apply to the person or group of persons who, having control of the broadcaster, are engaged by one or more simultaneous or successive operations over a period of 24 months, including those carried out by means of financial operations derived from or any other similar or similar nature. For the purposes of this paragraph, control and group of persons shall be understood as defined as such in Article 2 of the Securities Market Act.

3.          Where the disposal of the shares is carried out outside the aforementioned bags, those carried out in such a way as registration operations or protected crossings or with any other name which prevent persons carrying out the shares (a) to accept more competitive offers than they receive before and during the period in which they are offered for disposal, even if the National Banking and Securities Commission has given them the treatment of concerted transactions on the stock exchange compliance with Article 179 of the Securities Market Act.

4.          In the case of mergers or divisions of companies, the shares which are held and which have been obtained from the exchange made of the shares of the merging or breakaway companies if the shares of the latter companies are located in any of the assumptions mentioned in the previous two numerals.

CHAPTER V

REVENUE FROM PROCUREMENT OF GOODS

Item 130. Are considered revenue by acquisition of goods:

I.           The donation.

II. The treasures.

III. The prescription acquisition.

IV. The assumptions outlined in Articles 125, 160 and 161 of this Act.

V. Permanent buildings, installations, or improvements in real estate that, in accordance with the contracts for which they were granted or enjoyed, are for the benefit of the owner. Income shall be understood to be obtained at the end of the contract and in the amount to which the investments are made in accordance with the guarantee, which is authorized by the tax authorities.

In the case of fractions I to III of this article, the income shall be equal to the value of the avaluo practiced per person authorized by the tax authorities. In the case referred to in section IV of this same article, the total of the difference referred to in Article 125 of this Law shall be deemed to be revenue.

Article 131. Natural persons who obtain income from the purchase of goods may, for the calculation of the annual tax, make the following deductions:

I. Local and federal contributions, with the exception of income tax, as well as notarial expenses incurred on the basis of acquisition.

II. Other expenses incurred for trials in which the right to acquire is recognized.

III. The payments made for the purpose of the endorsement.

IV. The commissions and mediations paid by the acquirer.

Article 132. Taxpayers who obtain income from those mentioned in this Chapter will cover, as a provisional payment on account of the annual tax, the amount that will result from applying the rate of 20% on the income received, without any deduction. The provisional payment shall be made by means of a declaration which shall be lodged with the authorised offices within 15 days after the entry has been obtained. In the case of the case referred to in Article 130 (IV) of this Law, the time limit shall be based on the notification made by the tax authorities.

In transactions entered in public deed in which the value of the goods in question is determined by means of an endorsement, the provisional payment shall be made by means of a declaration to be lodged within the fifteen days after the date the writing or minuff is signed. Notaries, brokers, judges and other fedatarios, who may have notarial functions by law, shall calculate the tax under their responsibility and enter it by means of the said declaration in the authorized offices and shall issue Tax voucher, which consists of the amount of the transaction, as well as the withholding tax that was found. Such fedatarios, within the fifteen days following the one in which the deed is signed or minute no later than the 15th day of February of each year, shall submit to the authorized offices, the information that the Tax Code establishes for the purpose of the Federation in respect of the operations carried out in the previous immediate year.

CHAPTER VI

INTEREST INCOME

Article 133. It is considered interest income for the purposes of this Chapter, those set out in Article 8 of this Law and the others who have the same treatment of interest.

Treatment of interest shall be given to payments made by insurance institutions to policyholders or their beneficiaries, by the partial or total withdrawals made by such persons from the premiums (a) to be paid, or of the income of the latter, before the risk or event covered by the policy occurs, as well as to the payments made to the insured persons or to their beneficiaries in the case of insurance whose risk is the survival of the insured where in the latter case the requirements of Article 93 (21) of the Treaty are not met Law and provided the premium has been paid directly by the insured. In these cases to determine the tax will be the following:

Of the premium paid will be reduced the share corresponding to the coverage of the death risk insurance and other accessories that do not generate ransom value and the result will be considered as a contribution of investment. Of the sum of the redemption value and the dividends to which the insured or its beneficiaries are entitled, the sum of the updated investment contributions shall be reduced and the difference shall be the cumulative real interest. The investment contributions shall be updated for the period from the month in which the premium in question was paid or the month in which the last partial withdrawal referred to in the fifth paragraph of this Article was made, as treat, and up to the month in which the corresponding withdrawal is made.

Death insurance coverage will be the result of multiplying the difference that results from subtracting the amount secured by death from the ongoing risk mathematical reserve of the policy, by the probability of death of the insured on the date of the policy anniversary in the financial year in question. The probability of death shall be the one established by the National Insurance and Bonding Commission to determine the said reservation.

When partial withdrawals are paid prior to the cancellation of the policy, the amount that is withdrawn will be deemed to include investment contributions and real interest. For these purposes, the following will be available:

I. The partial withdrawal shall be divided between the sum of the redemption value and the dividends to which the insured is entitled to the date of withdrawal.

II. The real interest will be determined by multiplying the result obtained according to the fraction I of this article, by the amount of real interest determined at the same date in accordance with the third paragraph of this Article.

III. To determine the amount of the investment contribution to be withdrawn, the result obtained according to the fraction I will be multiplied by the sum of the updated investment contributions determined at the date of withdrawal, in accordance with the third paragraph of this Article. The amount of updated investment contributions that are withdrawn under this paragraph shall be reduced from the amount of the updated investment contributions determined in accordance with the third paragraph of this article.

The taxpayer must pay the tax on the real interest by applying the average tax rate it paid to it in the previous immediate years in which it paid this tax to the taxpayer. the one in which the calculation is carried out, without exceeding five. In order to determine the average tax rate referred to in this paragraph, the results expressed in percent shall be added to be obtained from dividing the tax determined in each financial year between the taxable income of the same financial year, previous financial years in respect of which the tax has been paid and the result shall be divided between the same number of years as considered, without exceeding five. The tax resulting from this paragraph shall be added to the tax corresponding to the financial year concerned and shall be paid in conjunction with the latter.

Interest for the purposes of this Chapter, the returns on voluntary contributions, deposited in the sub-account of voluntary contributions of the individual account opened in the terms of the Savings Systems Act for the Retirement or the individual account of the retirement savings system in the terms of the Law of the Institute of Social Security and Social Services of the State Workers, as well as those of the additional contributions deposited in the account of supplementary contributions in the Terms of the Retirement Savings Systems Act.

For the purposes of the preceding paragraph, the cumulative real interest shall be determined by decreasing the income obtained by the withdrawal made the updated amount of the contribution. The contribution referred to in this paragraph shall be updated for the period from the month in which the contribution was made and until the month in which the withdrawal is effected.

Article 134. Natural persons shall accrue to their other income the actual interest received in the financial year.

Dealing with interest paid by companies that are not considered to be members of the financial system in the terms of this Law and that derive from securities that are not placed among the general public investor through exchanges of approved securities or broad-based markets, the same shall be accumulated in the year in which they are established.

It is considered real interest, the amount in which interest exceeds the inflation adjustment. For these purposes, the inflation adjustment shall be determined by multiplying the average daily balance of the investment that generates the interest, by the factor that is obtained from subtracting the unit from the ratio that results from dividing the National Price Index. to the Consumer of the most recent month of the investment period, between the said index corresponding to the first month of the period. Where the calculation referred to in this subparagraph is carried out for a period of less than one month or covers fractions of a month, the percentage increase of the said index for that period or fraction of the month shall be considered in proportion to the number of days per month. the calculation is performed.

The average balance of the investment will be the balance that is obtained from dividing the sum of the daily balances of the investment between the number of days of the investment, without considering the accrued interest. paid.

When the inflation adjustment referred to in this precept is greater than the interest earned, the result shall be deemed to be lost. The loss may be reduced from other income earned in the financial year, except for those referred to in Chapters I and II of this Title. The part of the loss which could not be reduced in the financial year may be applied in the following five financial years to the end of the financial year in which it occurred and up to the last month of the financial year in which the loss occurred. apply or since it was last updated and up to the last month of the year in which it is applied, as appropriate.

When accrued interest is reinvested, these shall be deemed to be perceived, for the purposes of this Chapter, at the time when they are reinvested or at the disposal of the taxpayer, what happens first.

Article 135. Those who pay the interest referred to in Article 133 of this Law, are required to withhold and find out the tax by applying the rate that the Congress of the Union may establish for the financial year in question in the Revenue Act the Federation on the amount of capital that of place to the payment of interest, as provisional payment. In the case of interest referred to in the second paragraph of Article 134 thereof, the retention shall be carried out at the rate of 20% on nominal interest.

Natural persons who derive only cumulative income from those listed in this Chapter may choose to consider the withholding tax in the terms of this Article as a final payment, provided that such income corresponds to the financial year in question and does not exceed $100,000.00.

Article 136. Those who obtain the income referred to in this Chapter, in addition to the obligations laid down in other articles of this Law, shall have the following:

I.           Request your registration in the Federal Taxpayer Registry.

II. Present annual declaration in the terms of this Law.

III. Keep, in accordance with the provisions of the Fiscal Code of the Federation, the documentation related to the income, withholding and payment of this tax.

The provisions of this Article shall not apply to taxpayers who have chosen not to accrue interest to their other income in the terms of the second paragraph of Article 135 of this Law.

Those who pay the interest referred to in this Chapter shall provide the Tax Administration Service with the information referred to in Article 55 of this Law, even if they are not credit institutions.

CHAPTER VII

OF REVENUE FROM OBTAINING AWARDS

Article 137. It is considered revenue from the collection of prizes, those deriving from the celebration of lotteries, raffles, raffles, games with bets and contests of all kinds, legally authorized.

When the person who grants the prize pays the tax that corresponds to the taxpayer on behalf of the taxpayer, the amount of the tax paid on behalf of the taxpayer will be considered as income of the taxpayer. included in this Chapter.

The refund for the ticket that allowed to participate in the lotteries will not be considered as the prize.

Article 138. The tax for lottery prizes, raffles, raffles and contests, organized in national territory, will be calculated by applying the 1% rate on the value of the prize corresponding to each a ticket or whole ticket, without any deduction, provided that the revenue referred to in this paragraph is not taxed by the federal authorities, or the tax established does not exceed 6%. The tax rate referred to in this Article shall be 21%, in those federal entities applying a local tax on the income referred to in this paragraph, at a rate exceeding 6%.

The tax for gaming prizes, organized on national territory, will be calculated by applying 1% on the total value of the amount to be distributed among all the tickets that result awarded.

The tax resulting from this article will be retained by the persons making the payments and shall be deemed to be a final payment, when the person who receives the income declares that he is obliged to do so in the terms of the second paragraph of Article 90 of this Law. The retention referred to in this paragraph shall not be made when the income is received by the taxpayers referred to in Title II of this Law or the moral persons referred to in Article 86 of this Law.

Individuals who do not make the declaration referred to in the second paragraph of Article 90 of this Law may not consider the retention made in the terms of this article as payment. The amount of income earned in the terms of this Chapter must be accumulated to its other income. In this case, the person who obtains the income may prove against the tax that is determined in the annual declaration, the withholding of the federal tax that would have been made by the person who paid the prize in the terms of this precept.

Article 139. Those who surrender the prizes referred to in this Chapter, in addition to making the withholding of this tax, shall have the following obligations:

I. Provide, to persons who make payments to them for the concepts referred to in this Chapter, a tax proof of the amount of the operation, and the withheld tax that was learned.

II. Provide, evidence of income and tax proof for the awards for which the tax is not required in the terms of the tax Law.

III. Keep, in accordance with the provisions of the Fiscal Code of the Federation, documentation related to the constances, tax vouchers and the holds of this tax.

CHAPTER VIII

OF DIVIDEND INCOME AND OVERALL EARNINGS DISTRIBUTED BY MORAL PEOPLE

Article 140. Natural persons shall accrue to their other income, those received for dividends or profits. Such natural persons may prove, against the tax determined in their annual declaration, the income tax paid by the company which distributed the dividends or profits, provided that the person who carries out the This paragraph considers as a cumulative income, in addition to the dividend or utility received, the amount of income tax paid by that company corresponding to the dividend or utility received and also have the constancy and the Tax proof referred to in Article 76 (XI) of this Law. For these purposes, the tax paid by the company will be determined by applying the rate of Article 9 of this Law, to the result of multiplying the dividend or utility perceived by the factor of 1.4286.

By way of derogation from the foregoing paragraph, natural persons shall be subject to an additional rate of 10% on dividends or profits distributed by moral persons resident in Mexico. The latter will be required to withhold the tax when they distribute such dividends or profits, and they will find out jointly with the provisional payment for the corresponding period. The payment made under this paragraph shall be final.

In the cases referred to in section III of this Article, the tax retained by the moral person shall be entered not later than the date on which the statement of the financial year was presented or due corresponding.

It is understood that the income is perceived by the owner of the value title and, in the case of social parties, the person who appears as the owner of the title.

For the purposes of this article, it is also considered dividends or distributed utilities, the following:

I. The interests referred to in Articles 85 and 123 of the General Law on Mercantile Companies and the interest in the utility to be paid to (a) to be held by a company resident in Mexico or by national credit companies.

II. Loans to shareholders or shareholders, with the exception of those who meet the following requirements:

a) That are a normal consequence of the moral person's operations.

b) That is agreed to a term of less than one year.

c) That the agreed interest be equal to or greater than the rate set by the Federation Revenue Act for the extension of tax credits.

d) That these agreed conditions are effectively met.

III. Erogations that are not deductible under this Law and benefit the shareholders of moral persons.

IV. Revenue omissions or unrealized and improperly registered purchases.

V. The tax utility determined, even presumptively, by the tax authorities.

VI. The modification to the tax utility resulting from the determination of the cumulative income and deductions, authorized in operations held between related parties, made by those authorities.

CHAPTER IX

OF THE OTHER INCOME THAT PHYSICAL PERSONS OBTAIN

Article 141. Natural persons who obtain income other than those mentioned in the previous chapters, will consider them to be perceived in the amount at which they increase their income. assets, except in the case of the income referred to in Articles 143, fraction IV and 177 of this Law, where they are considered to be perceived in the tax year in which the moral persons, entities, trusts, associations in participation, investment funds or any other legal figure, the revenue of which is subject to preferential tax regimes, would accumulate them if they were subject to Title II of this Act.

Article 142. It is understood that, among others, they are income in the terms of this Chapter:

I. The amount of debts forgiven by the creditor or paid by another person.

II. The currency gain and interest from credits other than those mentioned in Chapter VI of Title IV of this Act.

III. The benefits to be obtained for the granting of guarantees or guarantees, when they are not provided by legally authorized institutions.

IV. Those from all kinds of investments made in foreign-resident societies without permanent establishment in the country, when it is not of the dividends or utilities referred to in the V fraction of this article.

V. dividends or profits distributed by foreign resident companies. In the case of reduction of capital or liquidation of foreign resident companies, income shall be determined by subtracting the amount of the reimbursement per share, the proven cost of acquiring the updated share for the period covered from the month of the acquisition and up to the month in which the refund is paid. In such cases, Article 5 of this Law shall apply.

Natural persons who receive dividends or profits referred to in this fraction, in addition to accumulating them for purposes of determining the payment of the tax on the income to which they are obliged under this Title, they must learn in an additional way, the income tax which is caused by multiplying the rate of 10%, to the amount to which they are entitled to the dividend or utility effectively distributed by the resident abroad, not including the amount of the withholding tax that in his case has been effected. The payment of this tax shall be final and shall be made out by the 17th of the month following that in which the dividends or profits were collected.

VI. The derivatives of acts or contracts by means of which, without transmitting the respective rights, the exploitation of concessions, permits, authorisations or contracts awarded by the Federation, the federative entities and the municipalities, or the rights covered by the pending applications.

VII. Those that come from any act or contract concluded with the shallower for the exploitation of the subsoil.

VIII. Those arising from the participation in the products obtained from the subsoil by person other than the concessionaire, exploiter or shallower.

IX. Moratory interests, damages and income from criminal or conventional clauses.

X. The proportional share corresponding to the taxpayer of the distributable remnant to be determined by the moral persons referred to in Title III of this Law, provided that the tax referred to in the last paragraph of Article 79 of the same Law was not paid.

XI. Those who perceive copyright, people other than this.

XII. The cumulative amounts in the terms of Article 185 (II) of this Act.

XIII. The amounts that correspond to the taxpayer in his or her character as a condomino or trustee of a property for lodging, granted in administration to a third party in order to use it to host people other than the taxpayer.

XIV. Those coming from financial operations derived and financial operations referred to in Articles 16-A of the Fiscal Code of the Federation and 21 of this Law. For these purposes, the provisions of Article 146 of this Law will apply.

XV. The estimated revenue in the terms of section III of Article 91 of this Law and those determined, including presumptively by the authorities in cases where it comes under the tax laws.

XVI. The amounts paid by insurance institutions to policyholders or their beneficiaries, which are not considered to be interest or compensation to be paid refers to the twenty-first part of Article 93 and Article 133 of this Law, regardless of the name under which they are designated, provided that the premium has been paid by the employer, as well as those corresponding to the surplus determined in accordance with the Second paragraph of section XVII of article 93 of this Law. In this case, the insurance institutions must carry out a withholding tax, applying the rate of 20% on the amount of the amounts paid, without any deduction and tax proof in which the amount of the transaction is recorded, as well as the tax retained that was learned.

Where persons are not required to make an annual declaration, the withholding tax shall be considered as a final payment. Where such persons choose to make a statement of the financial year, they shall accumulate the amounts referred to in the preceding paragraph to their other income, in which case they may prove against the tax at their expense, the amount of the withholding tax. made in the terms of the preceding paragraph.

XVII. Those coming from the royalties referred to in Article 15 -B of the Tax Code of the Federation.

XVIII. Income from personal retirement plans or the sub-account of voluntary contributions referred to in Article 151 (V) of the (a) this Law, when it is received without the taxpayer being in the case of invalidity or incapacity to carry out a paid work, in accordance with the laws of social security, or without having reached the age of 65 years, for these effects will be considered as income the total amount of contributions that would have been made to such a personal retirement plan or to the sub-account of voluntary contributions that it has deducted pursuant to Article 151, fraction V of this Act, updated, as well as the actual interest accrued during all years of the investment, updated. To determine the tax for this income will be the following:

a) Income will be divided between the number of years between the date of opening of the personal retirement plan and the date on which the income is obtained, without which in no case exceeds five years.

b) The result that is obtained in accordance with the previous fraction, will be the part of the income that will be added to the other cumulative income of the taxpayer in the the financial year in question and shall be calculated, in the terms of this Title, the tax corresponding to the cumulative revenue.

c) For the income portion that does not accumulate in accordance with the preceding fraction, the tax rate applicable in the financial year in question shall be applied all the cumulative income of the taxpayer and the tax resulting from that shall be added to that of the said financial year.

Where more than five years have elapsed since the date of opening of the personal retirement plan or the sub-account of voluntary contributions and the the date on which the income is obtained, the taxpayer shall pay the income tax by applying the average tax rate that it paid to it in the five immediate years preceding the one in which the calculation is made. In order to determine the average tax rate referred to in this paragraph, the results expressed in percent shall be added to be obtained from dividing the tax determined in each financial year in which this tax has been paid between the income taxable for the same financial year, from the previous five years and the result will be divided by five. The tax resulting from this paragraph shall be added to the tax corresponding to the financial year concerned and shall be paid in conjunction with the latter.

Article 143. Trying to gain currency and interest in this Chapter will be the following rules:

I. Any perception obtained by the creditor shall be understood to be applied in the first term to expired interest, except in cases of judicial adjudication for the payment of debts in which it shall be carried out as follows:

a) If the creditor receives assets from the debtor, the tax shall be levied on the total of the interest due, provided that its value reaches the capital and the These interests.

b) If the assets only cover the capital owed, the interest tax shall not be caused when the creditor declares that he does not reserve rights against the debtor for unpaid interest.

c) If the award is made to a third party, due interest is considered to be the amount that results from subtracting the amounts received by the creditor, the capital due, provided that the creditor does not reserve rights against the debtor.

For the purposes of this fraction, the tax authorities may take as the value of the goods the value of the goods they order to practise or the value which they have served base for the first coin.

II. The total or partial forgiveness of the capital or interest due, when the creditor does not reserve rights against the debtor, gives rise to the payment of the tax on the part of the debtor on the capital and interest forgiven.

III. When they come from loans or loans granted to residents in Mexico, they will be cumulative when they are collected in cash, goods or services.

IV. When they come from deposits made abroad, or from loans or loans granted to overseas residents, they will be cumulative as accrual.

V. Dealing with loans, debts or operations that are denominated in investment units, both interest and interest will be accumulated. the adjustment to be made to the principal by being called on those units.

The interests perceived in the terms of this article, except those mentioned in the IV fraction thereof, shall be cumulative in the terms of Article 134 of this Law. Where in terms of the quoted article the inflation adjustment is greater than the interest earned, the result shall be considered to be lost.

The loss referred to in the preceding paragraph, as well as the exchange loss that the taxpayer may obtain, may be reduced from the cumulative interest that you perceive in the terms of this Chapter. in the exercise in which it occurs or in the four years after the exercise in which the loss was incurred.

If the taxpayer does not decrease in an exercise the losses referred to in the previous paragraph, from other financial years, and may have done according to this article, you will lose the right to do so in financial years. subsequent up to the amount in which you may have done so.

For the purposes of this Chapter, the amount of the exchange loss or the amount deriving from the difference referred to in the third paragraph of this Article, which is not reduced in one financial year, shall be updated by multiplying it by the updating factor corresponding to the period from the first month of the second half of the year in which it was obtained and up to the last month of the same financial year. The share of these losses from previous years already up-to-date to be reduced against interest or against the exchange rate gain shall be updated by multiplying it by the updating factor corresponding to the period from the the month of December of the year in which it was last updated and until the month of December of the immediate year preceding that in which it applies.

Dealing with the interests referred to in section IV of this article, the nominal interest will be accumulated and the provisions of Article 44 of this Law will be in place; for the purposes of the calculation of the adjustment by inflation referred to in that provision shall not be considered to be debts.

Article 144. Taxpayers who derive income from those referred to in Article 143 of this Law shall make two semi-annual provisional payments on the basis of the annual tax, except for those covered by the fourth paragraph of that Article. Such payments shall be made in the months of July of the same financial year and January of the following year, applying to the cumulative income obtained in the six months, the tariff determined on the basis of the tariff in Article 96 of this Law, amounts corresponding to the columns relating to the lower limit, upper limit and fixed quota, which in the terms of that article are for each of the months covered by the six-month period for which the payment is made; where appropriate, against the tax on charge, the deductions which they would have made in the period in question. The tax authorities shall carry out the arithmetic operations provided for in this paragraph and publish the corresponding tariff in the Official Journal of the Federation.

When the income referred to in this article is obtained by payments made by the persons referred to in Titles II and III of this Law, such persons shall retain as provisional payment the the amount that is to be applied to the amount of the interest and the cumulative exchange rate, the maximum rate to be applied on the excess of the lower limit, which establishes the tariff contained in Article 152 of this Law.

Persons who do the withholding in the terms of this article, shall provide the taxpayers with proof of retention. Such retentions shall, where appropriate, be heard in conjunction with those referred to in Article 96 of the Act itself.

Article 145. Taxpayers who obtain in a sporadic manner income from those mentioned in this Chapter, except those referred to in Articles 143 and 177 of this Law, shall cover as a provisional payment on account of the annual tax, the amount resulting from the apply the rate of 20% on the income received, without any deduction. The provisional payment shall be made by means of a declaration which shall be lodged with the authorised offices within 15 days of obtaining the entry.

Taxpayers who periodically obtain income from those mentioned in this Chapter, except those referred to in Articles 143 and 177 of this Law, shall make monthly interim payments on account of the annual tax, no later than the 17th day of the immediate month following that to which the payment corresponds, by means of a declaration to be lodged with the authorised offices. The provisional payment shall be determined by applying the tariff of Article 96 of this Law to the income obtained in the month, without any deduction; against such payment the amounts retained in the terms of the following paragraph may be credited.

When the income referred to in this Chapter, except those referred to in Article 143 of this Law, is obtained by payments made by the moral persons referred to in Title II of this Law, such persons shall retain as a provisional payment the amount resulting from the application of the 20% fee on the amount of the same, without any deduction, and shall provide the taxpayers and the tax voucher on which the transaction is recorded. as the tax withheld; such withholding taxes shall, where appropriate, be heard in conjunction with those referred to in Article 96 of the Act itself.

In the case of income referred to in Article 142 (X) of this Law, moral persons shall retain, as a provisional payment, the amount resulting from the application of the maximum rate to be applied. on the excess of the lower limit, which establishes the tariff contained in Article 152 of the tariff on the amount of the distributable remnant, which shall enter together with the declaration referred to in Article 96 of this Law or, if applicable, in the dates set for the same, and will provide the contributors with the voucher the tax on the amount of the transaction, as well as the tax withheld.

Dealing with the income referred to in Article 142 (XII) of this Law, persons who make the payments shall retain as a provisional payment the amount to be applied to the amount. cumulative, the maximum rate to be applied on the excess of the lower limit that sets the rate contained in Article 152 of this Law.

Taxpayers will be able to request a decrease in the amount of the provisional payment referred to in the previous paragraph, provided that they meet the requirements that the Service of Tax administration by general rules.

Persons who hold the holds referred to in the third, fourth and fifth paragraphs of this Article, as well as the credit institutions in respect of which the personal accounts are constituted for the savings referred to in Article 185 of this Law shall be made to the authorised offices by 15 February of each year at the latest, by providing the relevant information of the persons to whom they have been entitled In the case of retentions in the previous calendar year, it should be clarified in the case of credit institutions, the amount corresponding to the withdrawal that is made from those accounts.

When persons making the payments referred to in Article 142 (XI) of this Law, pay the taxpayer, in addition, income from those mentioned in Chapter I of this Title, the income to referred to in paragraph XI shall be considered as salaries for the purposes of this Title.

In the case of the income referred to in Article 142 (XIII) of this Law, the persons who administer the property in question must retain the payments they make to the condomins. or trustees, the amount to be applied on the amount of the same, the maximum rate to be applied on the excess of the lower limit that establishes the rate contained in Article 152 of this Law; these holds must be informed, if appropriate, in conjunction with those referred to in Article 96 thereof and shall have the final payment character.

Taxpayers referred to in the preceding paragraph may choose to accumulate the income referred to in that paragraph to other income. In this case, they will accumulate the amount resulting from multiplying the amount of the income actually obtained by this concept after the corresponding retention, by factor 1.4286. Against the tax to be determined in the annual declaration, natural persons may credit the amount resulting from applying on the cumulative income to be determined in accordance with this paragraph, the maximum rate to be applied on the surplus of the lower limit that sets the rate contained in Article 152 of this Law.

When the royalties referred to in Article 142 (XVII) of this Law are obtained by payments made by the moral persons referred to in Title II of this Law, those moral persons shall have to carry out the withholding tax on the amount of the payment made, without any deduction, the maximum rate to be applied on the excess of the lower limit, which establishes the tariff contained in Article 152 of this Law, as a provisional payment. Such retention shall, where appropriate, be heard in conjunction with those referred to in Article 96 of this Law. Those who make the payment must provide the tax payers with the amount of the transaction, as well as the tax withheld.

Article 146. Dealing with the income referred to in Article 142 (XIV) of this Law, interest and gain or loss, cumulative or deductible, in financial transactions arising from debt and capital, as well as in transactions financial, shall be determined in accordance with the provisions of Articles 20 and 21 of this Law, respectively.

Exchange houses or credit institutions that intervene in the derivative financial transactions referred to in Article 16-A of the Fiscal Code of the Federation, or, failing that, persons who the payments referred to in this Article shall retain as a provisional payment the amount to be obtained from applying the 25% interest rate or the cumulative gain resulting from the transactions carried out during the month, the deductible losses, if any, of the other transactions carried out during the month by the natural person with the same institution or person. These institutions or persons must provide the tax payer with the amount of the transaction, as well as the tax withheld and will enter the tax withheld monthly, at the latest on the 17th of the following month. the one in which the retention was made, in accordance with Article 96 of this Law. The withholding tax referred to in this paragraph shall not be required in the case of financial transactions arising from capital which are carried out on the recognised markets referred to in Sections I and II of Article 16-C of the Code. Prosecutor of the Federation.

For the purposes of the payment and integer of the income tax obtained by natural persons from financial transactions derived from capital referred to shares placed in stock exchanges In accordance with the Securities Market Act, as well as those relating to stock indexes representing the aforementioned shares, provided that they are carried out on the recognised markets referred to in the Articles 1 and 2 of the Article 16-C of the Fiscal Code of the Federation, the provisions of Article 129 of the this Law, without the retention referred to in the preceding paragraph.

When in reference operations the loss to the natural persons exceeds the gain or the interest obtained by it in the same month, the difference may be diminished from the profits or from the interests, in the following months that are left to the exercise, without updating, until exhausted, and provided that it has not been diminished previously.

It is understood for the purposes of this article, that the gain obtained is that which is made at the time of the expiration of the derivative financial transaction, regardless of the exercise of the rights set in the same operation, or when an operation against the contracted original is recorded so that it is cancelled. The generated loss will be one that corresponds to operations that have expired or cancelled in the terms described above.

Credit institutions, exchange houses or persons involved in derivative financial transactions should be made available to the tax authorities for an annual report. show separately the gain or loss obtained, for each transaction, by each of the physical persons, as well as the amount of the withholding made, the name, key of the Federal Register of Taxpayers, Single Key of Population Record, of each one of them.

The earnings to be obtained by the taxpayer must be accumulated in their annual statement, which may be reduced by the losses generated in those transactions for the corresponding financial year and up to the amount of the earnings. Against the tax which is in charge of the tax, they may prove the tax which would have been withheld from them in the financial year. The provisions of this paragraph shall also apply in respect of the financial operations referred to in Article 21 of this Act.

CHAPTER X

OF DEDUCTIONS REQUIREMENTS

Article 147. The deductions authorized in this Title for natural persons obtaining income from Chapters III, IV and V of this Title shall meet the following requirements:

I. That are strictly indispensable for obtaining the income for which payment of this tax is required.

II. That when this Law permits the deduction of investments, it is necessary in the terms of Article 149 of the Law. In the case of leasing contracts, the provisions of Article 38 of this Law must be laid down.

III. To be subtracted only once, even if they are related to obtaining multiple revenue.

IV. Be covered by the tax voucher and payments whose consideration exceeds $2,000.00, are made by electronic transfer of funds from accounts opened in the name of the taxpayer in institutions that make up the financial system and the entities that the Bank of Mexico authorizes for this purpose; a credit card, credit card, debit, services, or through the so-called electronic purses authorised by the Tax Administration Service.

Payments which in the terms of this fraction are to be made by means of a nominee's cheque, may also be made by means of transfers from accounts in credit institutions or exchange houses of the taxpayer itself.

The tax authorities will be able to release from the obligation to pay the fees in the means set out in the first paragraph of this fraction, when the they are carried out in populations or in rural areas without financial services.

Payments will be made by nominative check, the key in the federal taxpayer register of who issues it, as well as on the front page of the same expression "to be credited to the beneficiary".

V. That are properly recorded in accounting.

VI. That insurance premium payments or sureties are made in accordance with the laws of the matter and correspond to concepts that this Act points to as deductibles or the obligation to hire them in other laws and provided that, in the case of insurance, during the life of the policy, no loans are granted by the insurer, to any person, with a guarantee of the insured sums, premiums paid or from the mathematical reserves.

VII. That the obligations laid down in this Law on withholding and integer of taxes from third parties are fulfilled or that, if any, it is prescribed copies of the documents in which the payment of the taxes is recorded. In the case of foreign payments, it may only be deducted provided that the taxpayer provides the information to which it is bound in the terms of Article 76, fraction VI of this Law.

Payments which are at the same time income in the terms of Chapter I of Title IV of this Law may be deducted provided that the fees for the purposes of the remuneration, corresponding deductions and local tax deductions for wages and in general for the provision of a respective independent personal service, the tax evidence is recorded and the obligations to which it is refers to Article 99, fractions I, II and V thereof, as well as the provisions which, where appropriate, regulate the employment allowance and the taxpayers comply with the obligation to register the workers at the Mexican Social Security Institute when they are obliged to do so, in the terms of the social security laws.

VIII. That when performing the corresponding operations or at the latest on the last day of the exercise, the requirements are met that for each deduction in the The law provides for this. In the case of only the tax voucher referred to in the first subparagraph of section IV of this Article, the latter shall be obtained at the latest on the day on which the taxpayer is required to present his declaration of the financial year and the date of issue of the Tax proof shall correspond to the financial year in which the deduction is made. In the case of the information declarations referred to in Articles 76 of this Law and 32, fractions V and VIII of the Law on the Value Added Tax, they must be submitted within the time limits set by the aforementioned Article 76 and count from that date with the corresponding tax vouchers.

IX. That they have actually been erogated in the exercise in question. They are considered to have been effectively made when the payment has been made in cash, by means of transfers of accounts in credit institutions or exchange houses, in services or in other goods other than receivables. In the case of payments by cheque, it shall be deemed to have been paid on the date on which the cheque was charged or when the taxpayer transfers the cheques to a third party, except where such transmission is in procurement. They are also considered to be effectively carried out when the taxpayer delivers credit claims subscribed by a different person. It is also understood that it is effectively rogated when the interest of the creditor is satisfied by any form of extinction of the obligations.

Where the payments referred to in the preceding paragraph are made by cheque, the deduction shall be made in the financial year in which it is charged, provided that the the date on which the tax voucher has been issued and the date on which the cheque was actually charged has not elapsed more than four months, except where both dates correspond to the same financial year.

It is presumed that the subscription of credit titles by the taxpayer, various to the check, constitutes guarantee of the payment of the price or agreed consideration for business activity or for the professional service. In such cases, the payment shall be deemed to be received when it is actually carried out, or where the taxpayer transfers the amounts receivable to a third party, except where such transfer is in procurement.

In the case of interest paid in the years preceding the year in which the holding of the goods is initiated on the lease, they may be deducted, proceeding as follows:

The interest paid for each month of the year for each of the unproductive exercises shall be added to the annual adjustment for each financial year. deductible inflation as referred to in Article 44 of this Law. The sum obtained for each unproductive year shall be updated with the corresponding update factor from the last month of the first half of the financial year concerned and until the last month of the first half of the year in which they start to produce revenue for the goods or goods concerned.

The updated interest for each of the exercises, calculated in accordance with the preceding paragraph, shall be added and the result thus obtained shall be divided between the number of unproductive years. The quotient to be obtained shall be added to the interest charged in each of the productive years and the result thus obtained shall be the amount of deductible interest in the financial year in question.

In the years following the first production year, the ratio obtained under the preceding paragraph shall be updated from the last month of the first half of the year. exercise in which income was started and until the last month of the first half of the year in which they are deducted. This procedure shall be done until the total of those interests are amortised.

X. That the declared acquisition cost or the interest that is derived from credits received by the taxpayer corresponds to the market. When they exceed the market price, the surplus shall not be deductible.

XI. That in the case of investments do not have tax effects on their revaluation.

XII. That in the case of the acquisition of import goods, it is established that the legal requirements for their definitive importation were met. The amount of such acquisition shall be deemed to have been declared on the basis of the import.

XIII. To be deducted as the currency losses arising from foreign currency debts or credits are accrued.

The amount of the annual adjustment for inflation deductible under the terms of the preceding paragraph shall be determined in accordance with the provisions of Article 44 of this Regulation. Law.

XIV. That when payments whose deduction is intended, are made to taxpayers who cause the value added tax, that tax is transferred in form express and separately in the tax voucher.

XV. In the case of payments made for the purpose of wages and in general for the provision of a personal service subordinate to workers who have (a) the right to the employment allowance, the amounts paid by that allowance to their employees are actually delivered and the requirements referred to in the provisions which, if appropriate, the allowance for the benefit of the employment, except where it is not required to do so in the terms of the provisions cited.

Article 148. For the purposes of this Chapter, they will not be deductible:

I. Income tax payments from the taxpayer or third parties, or contributions from the subsidized party or that originally correspond to third parties, in accordance with the relevant provisions, except in the case of contributions paid to the Mexican Social Security Institute in charge of the employers.

Nor shall the amounts of the employment allowance paid by the taxpayer, as a retainer, be deductible to the persons who provide subordinate personal services and/or the accessories of the contributions, with the exception of surcharges which the taxpayer has actually paid, including by way of compensation.

II. Investments in homes, in dining rooms that are not available to all workers in the company, in aircraft and in vessels, which have no concession or permission from the Federal Government to be commercially exploited or payments for the use or temporary enjoyment of such goods.

III. In no case will investments or payments be deductible for the use or temporary enjoyment of automobiles.

IV. Donations and representation expenses.

V. The penalties, damages and damages or conventional penalties. Compensation for damages and conventional penalties may be deducted where the law imposes the obligation to pay them for the purpose of creating risks created, objective liability, fortuitous case, force majeure or acts of third parties, except the damages or the cause which gave rise to the conventional penalty, has been caused by fault attributable to the taxpayer.

VI. The salaries, commissions and fees, paid by the person granting the use or temporary enjoyment of real estate in a calendar year, in the amount in which exceed, as a whole, 10% of the annual revenue from the granting of the temporary use or enjoyment of immovable property.

VII. The interest paid by the taxpayer that corresponds to investments that are not derived from cumulative income for which you can make this deduction.

In the case of capital taken on loan for the acquisition of investments or the performance of expenses or where investments or expenses are made on a credit basis, and such investments or expenses are not deductible for the purposes of this Law, the interest arising from the capital taken out on loan or from the credit operations shall not be deductibles. If investments or expenses are partially deductible, interest will only be deductible in that proportion, even those determined in accordance with Article 44 of this Law.

For the purposes of the provisions of this fraction, the amounts to be paid are considered to be of interest. the concept of taxes, duties or any other concept is paid on behalf of the person who obtains the interest, or any other payment, in cash or in kind, to be made for any concept to whom the interest is perceived, provided that such payment derived from the same contract that gave rise to the interest payment.

VIII. Payments for value added tax or special tax on production and services which the taxpayer would have carried out and which he would have transferred to him. The provisions of this fraction shall not apply where the taxpayer is not entitled to the credit of the said taxes which would have been transferred to him or which would have been paid on the basis of the importation of goods or services, which correspond to deductible expenses or investments in the terms of this Act.

The value added tax or the excise duty on production and services will also not be deductible, transferred to the taxpayer or the taxpayer who had paid in connection with the importation of goods or services, where the reason for the transfer or payment of the goods or services is not deductible in the terms of this Law.

IX. The losses arising from the disposal, as well as by chance or force majeure, of the assets whose investment is not deductible in accordance with the provisions of this Law.

Nor will the loss arising from the disposal of securities be deductible, provided that they are the ones that Place among the large investor public, in accordance with the general rules that the Tax Administration Service will issue to the effect.

X. The expenses that are incurred in relation to investments that are not deductible according to this Title.

XI. The losses that are incurred in the derivative financial operations and the operations to which they are refers to Article 21 of this Law, when it is concluded with natural or moral persons resident in Mexico or abroad, which are related parties in the terms of Article 85 of this Law, when the agreed terms do not correspond to the which have been agreed with or between independent parties in transactions comparable.

XII. We consume them in bars or restaurants. Nor shall expenditure in canteens which, by its nature, be available to all employees of the undertaking and even if they are not deductible, exceed an amount equivalent to a general minimum daily wage in the geographical area of the undertaking. (a) a taxpayer for each worker who makes use of the same and for each day on which the service is provided, added to the recovery fees paid by the worker for this purpose.

The limit set by this fraction does not include expenses related to the provision of service dining as they are, the maintenance of laboratories or specialists who study the quality and suitability of the food served in the canteens referred to in the preceding paragraph.

XIII. Payments for customs services, other than customs agent fees and expenses in the agents or the moral person constituted by such customs agents shall incur in the terms of the Customs Law.

XIV. Payments of initial amounts for the right to acquire or sell, goods, currency, shares or other securities which are not relevant in recognised markets, in accordance with Article 16-C of the Tax Code of the Federation, and which have not been exercised, provided that they are contracting parties which are related to the terms Article 179 of this Law.

XV. The refund made by the borrower for an amount equal to the property rights of the securities received on loan.

XVI. The amounts that have the character of participation in the utility of the taxpayer or are conditioned to obtain it, whether they correspond to workers, to members of the board of directors, to obligationists or to others.

Article 149. Investments whose deduction permits this Title, except those covered by Chapter II Sections I or II thereof, may be deducted only by means of the annual application of the amount of such investments and up to this limit. following hundreds:

I. 5% for builds.

II. 10% for installation expenses.

III. 30% for electronic computing equipment, consisting of a machine or group of interconnected machines containing input units, storage, computing, control and output units, using electronic circuits in the main elements to execute arithmetic or logic operations automatically by means of programmed instructions, stored internally or controlled externally, as well as for the peripheral equipment of such computer equipment, such as optical disk units, printers, optical readers, grainers, backup units, barcode readers, digitizers, external storage units, as well as monitors and keyboards connected to a computer equipment.

IV. 10% for equipment and tangible movable property, not included in the above fractions.

When the taxpayer alients the goods or when they cease to be useful to obtain the income, they will deduct, in the calendar year in which this occurs, the part not yet deducted. In the case where the goods are no longer useful for obtaining the income, the taxpayer must submit a notice to the tax authorities and keep a weight in their records. The provisions of this paragraph do not apply to the cases referred to in Article 31 of this Law.

The amount of the investment shall be determined in accordance with the provisions of the second paragraph of Article 31 of this Law.

When the amount of the investment is higher than the market value of the goods or the guarantor that the tax authorities are ordered to practice or practice, the lower value shall be taken for the purposes of the deduction.

The deduction of the investments referred to in this Article shall be updated in the terms of the seventh paragraph of Article 31 of this Law and applying the provisions of the first, fifth, sixth and sixth paragraphs. eighth of the same article.

When it cannot be separated from the cost of the building, the part corresponding to the buildings, 20% of the total will be considered as cost of the land.

CHAPTER XI

OF THE ANNUAL DECLARATION

Article 150. Natural persons obtaining income in a calendar year, with the exception of those exempted and those for whom a definitive tax has been paid, are obliged to pay their annual tax by means of a declaration which they shall submit in the month of April of the following year, to the authorized offices.

They may choose not to present the declaration referred to in the preceding paragraph, natural persons who only obtain cumulative income in the year in respect of the concepts mentioned in Chapters I and VI of this Title, the sum of which does not exceed $400,000.00, provided that the actual interest income does not exceed $100,000.00 and on such income the retention referred to in the first paragraph of Article 135 of this Title has been applied Law.

In the statement referred to in the first paragraph of this article, taxpayers who in the financial year who declare themselves have earned total income, including those for whom they are not required to payment of this tax and for which the definitive tax was paid, in excess of $500,000.00 must declare all of its income, including those for which the payment of this tax is not required in the terms of the XVII fractions, Article 93 (a) and Article 93 (II) of this Law and for which tax has been paid definitive in the terms of Article 138 thereof.

Taxpayers who earn income from the provision of a subordinate personal service shall be in accordance with Article 98 of this Law.

Article 151. The natural persons resident in the country who obtain income from those mentioned in this Title, in order to calculate their annual tax, may, in addition to the deductions authorized in each Chapter of this Law that correspond to them, the following personal deductions:

I. Payments for medical and dental fees as well as hospital expenses incurred by the a taxpayer, for his or her spouse or for the person with whom he lives in concubinage and for his or her ascendants or descendants in a straight line, provided that such persons do not receive income in the calendar year in an amount equal to or greater than the to calculate the general minimum wage for the geographical area of the (a) a higher taxpayer than a year, and are made by means of a taxpayer's nominee cheque, electronic transfers of funds, from accounts opened in the name of the taxpayer in institutions that make up the financial system and the entities that for this purpose, authorize the Bank of Mexico or by credit card, debit card, or services.

The tax authorities will be able to release from the obligation to pay the services through the media established in the preceding paragraph, where they are carried out in populations or in rural areas without financial services.

II. The expenses of funerals in the party where they do not exceed the general minimum wage of the geographical area of the high contributor per year, made for the persons identified in the preceding fraction.

III. Non-onerous or remunerative donations, which satisfy the requirements set forth in this Law and in the general rules that the Tax Administration Service establishes for the purpose and which are granted in the following cases:

a) To the Federation, to the federative entities or the municipalities, to their decentralized agencies that be taxed in accordance with Title III of this Law, as well as the international organizations of which Mexico is a full member, provided that the purposes for which they were created correspond to the activities for which Mexico can obtain authorization to receive tax-deductible donations.

b) To the entities referred to in the sixth paragraph of Article 82 of this Law.

c) To the entities referred to in Articles 79, 19 and 82 of this Law.

d) To the moral persons referred to in Section VI, X, XI, XX and XXV of Article 79 of this Law and comply with the requirements laid down in Article 82 of the same Law.

e) To civil partnerships and societies that grant scholarships and meet the requirements of Article 83 of this Act.

f) Enterprise school programs.

The Tax Administration Service shall publish in the Official Journal of the Federation and make known in its electronic Internet page, the data of the institutions referred to in points (b), (c), (d) and (e) of this fraction which meet the above requirements.

Dealing with donations awarded to educational institutions will be deductible whenever they are public or private establishments which have the authorization or recognition of official validity of studies in the terms of the General Law of Education, are intended for the acquisition of investment goods, for research scientific or technological development, as well as administration costs up to the amount, in the latter case, to indicate the Regulation of this Law; whether donations are not onerous or remunerative, in accordance with the general rules that the Secretariat of Public Education determines to the effect, and those institutions have not distributed remains with its partners or members over the past five years.

The total amount of donations referred to in this fraction will be deductible for up to a non- exceeds 7% of the cumulative income used as the basis for calculating the income tax payable by the taxpayer in the immediate financial year preceding that in which the deduction is made, before applying the deductions to which he refers this article. Where donations are made in favour of the Federation, the federal authorities, the municipalities, or their decentralised bodies, the amount deductible may not exceed 4% of the cumulative income referred to in this paragraph, without No case is the limit of the deduction in respect of these donations, and of those made to different authorized donatariats, exceeds the 7% cited.

When donations are granted between related parties, the donor will not be able to contract with her related party that made the donation, services, disposal, or the granting of the use or temporary enjoyment of goods. If not, the donor must consider the amount of the deduction made by the corresponding donation as a cumulative income for the purposes of the income tax calculation, updated from the date the deduction was applied and until the time when their accumulation is carried out.

IV.         The actual interest actually paid in the financial year by mortgage loans intended for the acquisition of their house contracted with the institutions belonging to the financial system, provided that the total amount of the Loans granted by that property do not exceed 700 000 units of investment. For these purposes, the amount in which the interest actually paid in the year exceeds the annual inflation adjustment for the same financial year shall be considered to be real interest and shall be determined by applying the provisions of the the third paragraph of Article 134 of this Law, for the appropriate period.

The members of the financial system, as referred to in the preceding paragraph, shall issue a tax voucher stating the amount of the actual interest paid by the taxpayer in the financial year in question, in the terms set out in the rules to be issued by the Tax Administration Service.

V. Additional retirement contributions made directly in the sub-account of supplementary retirement contributions, in the terms of the Law of Retirement Savings Systems or personal retirement plan accounts, as well as voluntary contributions made to the sub-account of voluntary contributions, provided that in the latter case such contributions comply with the stay requirements set for the retirement plans according to the second paragraph of this fraction. The amount of the deduction to which this fraction refers shall be up to 10% of the taxpayer's cumulative income in the financial year, without any such contributions exceeding the equivalent of five general minimum wages in the geographical area of the financial year. High contributors per year.

For the purposes of the preceding paragraph, personal retirement plans, those accounts or investment channels, which are established with the sole purpose of receive and administer resources intended exclusively for use when the holder reaches the age of 65 years or in the cases of invalidity or incapacity of the holder to carry out a paid personal work in accordance with the laws of social security, provided that they are administered in individual accounts by insurance institutions, credit institutions, exchange houses, retirement fund managers or investment companies operating companies with authorization to operate in the country, and provided that they obtain prior authorization from the Tax Administration Service.

When the resources invested in the sub-accounts of supplementary retirement contributions, in the sub-accounts of voluntary contributions or in the plans personal retirement, as well as the returns that they generate, are withdrawn before the requirements set forth in this fraction are met, the withdrawal shall be deemed to be cumulative income in the terms of Chapter IX of this Title.

In the case of the death of the holder of the personal retirement plan, the designated beneficiary or the heir shall be obliged to accumulate his other income of the exercise, any withdrawals from the account or investment channels, as the case may be.

VI. Insurance premiums for medical expenses, complementary or independent of health services provided by public security institutions social, provided that the beneficiary is the taxpayer himself, his or her spouse or the person with whom he lives in concubinage, or his or her ascendants or descendants, in a straight line.

VII. Expenses intended for school transportation of descendants in a straight line when it is mandatory in the terms of the provisions the legal status of the area where the school is located or when all the students are included in the school. For these purposes, the amount corresponding to the concept of school transportation must be separated in the voucher and made by means of the taxpayer's nominative cheque, electronic transfers of funds, from accounts opened in the name of the a taxpayer in institutions that make up the financial system and the entities that the Bank of Mexico may authorize for this purpose or by credit card, debit card, or services.

The tax authorities may release from the obligation to pay the fees through the means set out in the preceding paragraph, when they are they are carried out in rural or rural areas without financial services.

VIII. Payments made by way of local income tax on wages and in general for the provision of a subordinate personal service, always the rate of such tax does not exceed 5%.

In order to determine the geographical area of the taxpayer, the place where your room is located will be located at 31 December of the year in question. Persons who are domiciled outside the national territory at the same time shall attend to the geographical area corresponding to the Federal District.

For the purposes of the deductions referred to in the fractions I and II preceding, to be credited by means of tax vouchers, the corresponding amounts were actually paid out in the calendar year in question to institutions or persons resident in the country. If the taxpayer recovers part of those amounts, it will only deduct the unrecovered difference.

The requirements of the deductions set forth in Chapter X of this Title are not applicable to the personal deductions referred to in this article.

The total amount of deductions that taxpayers may make in the terms of this Article and Article 185 may not exceed the amount that is less than four minimum wages. (a) a total of 10% of the total income of the taxpayer, including those for which the tax is not paid, or 10% of the total income of the taxpayer. The provisions of this paragraph shall not apply in the case of donations referred to in section III of this article.

Article 152. The natural persons shall calculate the tax for the financial year by adding, to the income obtained under Chapters I, III, IV, V, VI, VIII and IX of this Title, after making the deductions authorized in those Chapters, the utility a taxable amount determined in accordance with Sections I or II of Chapter II of this Title, the result obtained shall be reduced, where applicable, the deductions referred to in Article 151 of this Law. The amount you get will be applied as follows:

The provisions of this Article shall not apply to revenue for which the payment of the tax is not required and for which the final tax has already been paid.

Against the annual tax calculated in the terms of this article, the following accrediting may be made:

I. The amount of interim payments made during the calendar year.

II. The tax accreditable in the terms of Articles 5, 140 and 145, penultimate paragraph, of this Law.

In cases where the taxpayer's tax is less than the amount credited in the terms of this article, only return or compensation may be requested. tax actually paid or which would have been withheld. For the purposes of the compensation referred to in this paragraph, the balance in favour shall be updated for the period from the previous immediate month in which the statement containing the balance is presented in favour and until the immediate month. before the month in which you are compensated.

When the observed inflation accumulated since the last month that was used in the calculation of the last update of the amounts set in national currency of the tariffs contained in this article and In Article 96 of this Law, more than 10%, these quantities shall be updated for the period from the last month used in the calculation of the last update and until the last month of the financial year in which the percentage is exceeded. cited. For these purposes, the update factor that results from dividing the National Consumer Price Index from the previous month before the most recent of the period, between the National Consumer Price Index corresponding to the last month that was used in the last update calculation. This update shall enter into force on 1 January of the following year in which the said increase has been made.

TITLE V

FROM RESIDENTS ABROAD WITH INCOME FROM WEALTH SOURCE LOCATED ON NATIONAL TERRITORY

Article 153. They are required to pay income tax under this Title, foreign residents who earn cash, goods, services or credit, even if they have been presumptively determined by the tax authorities, in the terms of articles 58-A of the Fiscal Code of the Federation, 11, 179 and 180 of this Law, from sources of wealth located in national territory, when they do not have a permanent establishment in the country or when you have it, the income is not attributable to it. It is considered that they form part of the income referred to in this paragraph, the payments made on the occasion of the acts or activities referred to in this Title, which benefit the resident abroad, including when he is prevented from doing so, payments to which the same provisions apply to them as to the revenue which originated them.

When foreign residents obtain the income referred to in the preceding paragraph through a trust established in accordance with Mexican law, in which they are trustees or The trustee will determine the taxable amount of such income of each resident abroad in the terms of this Title and must carry out the withholding tax that they would have obtained directly such revenue. In the case of securities issuing trusts placed among the large investor public, securities depositories shall be liable to retain the tax for the income derived from such securities.

When the person making any of the payments referred to in this Title covers the tax payable to the taxpayer on behalf of the taxpayer, the amount of such tax shall be deemed to be income of the taxpayer. included in this Title and will apply the provisions that correspond to the type of income by which the tax was paid.

When in the terms of this Title it is intended that the tax be paid by withholding, the retainer will be obliged to find out an amount equivalent to that which must have been retained on the date of the enforceability or the time when the payment is made, whichever is the case first. In the case of consideration of foreign currency, the tax shall be entered in the currency at the time when the consideration is payable or payable. For the purposes of this Title, it shall have the same effect as the payment, any other legal act by virtue of which the debtor extinguishes the obligation in question.

The tax payable in the terms of this Title shall be considered as definitive and shall be entered in the form of a declaration to be filed with the authorized offices.

You will not be required to pay the tax in the terms of this Title, in the case of interest income, capital gains, as well as the granting of use or enjoyment. temporary land or buildings attached to the ground located in national territory, resulting from investments made by pension and retirement funds, which are the terms of the legislation of the country concerned, that the funds are the beneficial beneficiaries of such income and that the latter is they are exempt from income tax in that country.

For the purposes of this Article, capital gains shall mean income from the disposal of shares whose value comes from more than 50% of land and buildings attached to the ground, located in the country, as well as those arising from the disposal of such goods.

The provisions of the preceding paragraph shall apply to land and buildings attached to the ground, provided that such goods have been granted in use or temporary enjoyment by the pensions and pensions referred to above, for a period not less than four years before their disposal.

When pension and retirement funds participate as shareholders in moral persons, the total income of which comes from at least 90% of the disposal or the granting the use or temporary enjoyment of land and buildings attached to the soil, located in the country, and the disposal of actions whose value comes from more than 50% of land and buildings attached to the soil, located in the country, (a) moral persons shall be exempt, in the proportion of ownership or ownership participation of such funds in the moral person, provided that the conditions laid down in the preceding paragraphs are met. The provisions of this paragraph shall also apply where such funds are involved as partners in a joint partnership.

For the purposes of the 90% calculation referred to in the preceding paragraph, moral persons who hold pension and retirement funds from abroad, who comply with the requirements set out in this Article, may exclude from total income, the annual adjustment for cumulative inflation and the exchange rate gain deriving exclusively from the debts contracted for the acquisition or to obtain income from the granting the use or temporary enjoyment of land or buildings attached to the soil, located in the country.

The exemption provided for in the sixth paragraph of this Article shall not apply, where the consideration agreed to by the granting of the use or enjoyment of immovable property is determined in the tenant's income function.

By way of derogation from this article, pension funds or retirements from abroad and the moral persons in which they participate as shareholders shall be obliged to pay of income tax in terms of this Law, when they obtain income from the disposal or acquisition of land and buildings attached to the land that they have registered as an inventory.

Article 154. For income from wages and in general for the provision of a subordinate personal service, the source of wealth shall be deemed to be on national territory where the service is provided in the country.

The tax will be determined by applying to the income obtained the following rates:

I. You will be exempt for the first $125,900.00 earned in the calendar year in question.

II. The rate of 15% shall be applied to the revenue received in the calendar year in question exceed the amount indicated in the preceding fraction and not exceed $1,000,000.00.

III. The rate of 30% will be applied to the revenue received in the calendar year in question exceed $1,000,000.00.

The person making the payments must also carry out the withholding tax if resident in the country or resident abroad with a permanent establishment in Mexico with the the service is related. In other cases, the taxpayer shall enter the corresponding tax by means of a declaration which he shall submit to the authorised offices within 15 days of the receipt of the revenue.

In the case of section VII of Article 94 of this Law, income shall be deemed to be obtained in the calendar year in which the option to buy the shares has been exercised. securities that represent the property of goods.

When the income in question is collected for periods of twelve months in the terms of the seventh paragraph of this article and those periods do not coincide with the calendar year, they shall apply. the fees provided for in the previous fractions, depending on the 12-month period rather than the calendar year.

For the purposes of this article and article 156 of this Law, taxpayers may guarantee the payment of the income tax that may be caused by reason of the carrying out their activities on national territory, by depositing in the accounts referred to in section I of Article 141 of the Tax Code of the Federation.

Except for the payment of the tax referred to in this article, for income from wages and in general for the provision of a subordinate personal service, paid by residents in a foreign person, natural or moral person, who has no permanent establishment in the country or who has established him, the service is not related to that establishment, provided that the service provider's stay in the national territory is less to 183 calendar days, consecutive or not, in a period of twelve months.

The provisions of the preceding paragraph shall not apply, when the person who pays the service has any establishment in the national territory with which the service relates, even if it does not constitute permanent establishment in the terms of Articles 3, 168 and 170 of this Law, as well as when the service provider to the said establishment receives supplementary payments from residents abroad, in consideration of services provided for which it has obtained income subject to retention in accordance with the third paragraph of this Article.

The taxpayer who is obliged to pay the tax in the terms of this article will be obliged to continue to pay it, as long as it does not show that it has remained for more than 183 consecutive days outside national territory.

Article 155. Dealing with retirement income, pensions, retirement assets, as well as lifetime pensions or other forms of retirement, including those from the retirement insurance sub-account or the retirement sub-account, advanced age-guarantee and old age provided for in the Social Security Law, those coming from the individual account of the retirement savings system provided for in the Law of the Institute of Social Security and Social Services of the State Workers, and the income derived from the The benefit provided for in the Universal Pension Law, the source of wealth will be considered finds on national territory where the payments are made by residents in the country or permanent establishments on national territory or where the contributions are derived from a subordinate personal service which has been provided on a territory national.

The tax will be determined by applying to the income obtained the following rates:

I. It will be exempt for the first $125,900.00 obtained in the calendar year in question.

II. The rate of 15% shall be applied on revenue received in the calendar year in question exceeding the amount indicated in the preceding fraction and do not exceed $1,000,000.00.

III. The 30% rate will be applied on revenue received in the calendar year in question that exceeds $1,000,000.00.

The person who makes the payments referred to in this article shall carry out the withholding tax if he is resident in the country or resident abroad with a permanent establishment in Mexico. In other cases, the taxpayer shall enter the corresponding tax by means of a declaration which he or she shall submit to the authorised offices within 15 days of the date on which the entry is made.

Article 156. For fee income and in general for the provision of an independent personal service, the source of wealth shall be deemed to be on national territory where the service is provided in the country. It is presumed that the service is fully provided in Mexico when it is proved that part of the service is provided on national territory, unless the taxpayer demonstrates the part of the service he provided abroad, in which case the tax is calculate the portion of the consideration corresponding to the proportion in which the service was provided in Mexico.

It is also presumed, unless proof to the contrary, that the service is provided on national territory when payments for such service are made by a resident on national territory or a resident abroad. with permanent establishment in the country to a resident abroad that is its related party in the terms of article 179 of this Law.

The tax will be determined by applying the rate of 25% on the total income obtained, without any deduction, owing to the withholding of the tax the person making the payments if he is resident in the country or resident abroad with a permanent establishment in Mexico with which the service is related. In other cases, the taxpayer shall enter the corresponding tax by means of a declaration which he or she shall submit to the authorised offices within 15 days of the date on which the entry is made.

Taxpayers who receive income from those mentioned in this precept will have an obligation to issue a tax voucher.

Except for the payment of the tax referred to in this article, fee income and in general for the provision of an independent personal service, paid by residents abroad, natural or moral persons, who do not have permanent establishment in the country or who have it, the service is not related to such establishment, provided that the service provider's stay in the national territory is less than 183 days natural, consecutive or not, over a period of twelve months.

The provisions of the preceding paragraph shall not apply, when the person who pays the service has any establishment in the national territory with which the service relates, even if it does not constitute permanent establishment in the terms of Articles 3, 168 and 170 of this Law, as well as when the service provider to the said establishment receives supplementary payments from residents abroad, in consideration of services provided for which it has obtained income subject to retention in accordance with the third paragraph of this Article.

The taxpayer who is required to pay the tax in the terms of this article will be required to continue to pay it as long as it does not show that it has remained for more than 183 consecutive days. outside national territory.

Article 157. For remuneration of any kind received by members of management, supervisory, advisory or any other board, as well as fees to administrators, commissioners and general managers shall be deemed to be the source of wealth is in national territory when they are paid at home or abroad, by companies resident in Mexico.

The tax will be determined by applying the rate of 25% on the total income obtained, without any deduction, and the withholding of the payments shall be made by the companies making the payments.

Article 158. In income from the granting of the use or temporary enjoyment of real estate, the source of wealth shall be deemed to be in national territory when such assets are located in the country.

They shall also be considered as income as referred to in the preceding paragraph, the consideration obtained by a resident abroad for granting the right of use or enjoyment and other rights that are agreed upon. on immovable property located in the country, even if such consideration is derived from the disposal or disposal of the aforementioned rights.

For the purposes of the preceding paragraphs, the tax shall be determined by applying the rate of 25% on the income obtained, without any deduction, and the persons who make the payments must be retained. In the event that the person making the payments is a resident abroad, the tax will be entered by the tax authorities within 15 days of obtaining the income.

Taxpayers who earn income from those listed in the first and second paragraphs of this Article shall be required to issue tax proof for the consideration received. Where such income is received through trust operations, it shall be the trust institution that issues the tax voucher and carries out the withholding tax referred to in the preceding paragraph.

In income from the granting of the use or temporary enjoyment of movable property, the source of wealth shall be deemed to be in the national territory, where the movable property is intended for commercial activities, industrial, agricultural, livestock and fishing, are used in the country. It is presumed, unless proof to the contrary, that the movable property is destined for these activities and is used in the country, when the one who uses or enjoys the good is resident in Mexico or resident abroad with permanent establishment in territory national. In the event that the movable property is intended for activities other than the former, when the material delivery of the movable property is made in the country.

For the purposes of the preceding paragraph, the tax shall be determined by applying the rate of 25% on the income obtained, without any deduction, and the persons who make the payments must be retained. For containers, trailers or semi-trailers that are temporarily imported for up to one month in the terms of the Customs Act; as well as aircraft and vessels that have the granting or permission of the Federal Government to be commercially exploited, the tax shall be determined by applying the 5% rate provided that such goods are used directly by the lessee in the transport of passengers or goods.

The provisions of the above two paragraphs do not apply to the movable property referred to in Articles 166 and 167 of this Law.

In the income derived from chartering contracts, the source of wealth will be considered to be in national territory, when the chartered vessels carry out cabotage navigation in the territory of the country. national. In this case, the tax shall be determined by applying the rate of 10% on the income obtained, without deduction, the person making the payments must be retained.

Article 159. The source of wealth is considered to be in national territory when in the country they are located in the country where they are located in the country where they are located. located one or more of the real estate that is wholly or partially allocated to that service.

For the purposes of this article, they are considered as timeshare service contracts, those that are at least in any of the following assumptions:

I. Grant the use or enjoyment or the right to temporarily or permanently occupy or enjoy one or more immovable property or part thereof that are intended for tourist, holiday, recreational, sporting or any other purposes, including, where applicable, other ancillary rights.

II. The hosting service or the like in one or more real estate or part thereof, which are intended for tourist, holiday, recreational, sports or any other purpose, including other ancillary rights, for a specific period at intervals previously established, determined or determinable.

III. Enajar memberships or similar titles, whatever the name they are appointed with, that allow the use, enjoyment, enjoyment or lodging of one or more a number of or part of the real estate, which is intended for tourist, holiday, recreational, sporting or other purposes.

IV. Grant one or more real estate, located on national territory, in administration to a third party, to use it in full or in part to host, host or provide accommodation in any form, to persons other than the taxpayer, as well as other ancillary rights, where appropriate, for a specific period at intervals previously established, determined or determinable.

The real estate or property referred to in this article may be a certain unit considered to be individual or a variable unit within a given class.

The tax will be determined by applying the rate of 25% on the total income obtained by the beneficial owner resident abroad, without any deduction, owing to the retention, the If you are resident in the country or resident abroad with permanent establishment in the country; otherwise, the taxpayer will find the corresponding tax by means of a declaration that you will present to the authorized offices within the country. of the 15 days following the receipt of the income. Taxpayers who have a representative in the country who meet the requirements laid down in Article 174 of this Law may choose to apply the maximum rate to be applied on the surplus of the lower limit than the value obtained. establishes the tariff contained in Article 152 of this Law, provided that the representative has the financial statements, or the contents of the information statement regarding his tax situation at the disposal of the authorities fiscal.

The income obtained or the utility obtained as referred to in the preceding paragraph shall be those obtained from multiplying the ratio resulting from dividing the value of the real estate of the taxpayer and its related parties located in Mexico, between the value of all the real estate of the taxpayer and its related parties, affected to that benefit, by the world income obtained or by the determined world utility, before the payment of income tax, of the resident abroad, as the case may be, obtained by the provision of the timeshare tourism service.

For the purposes of this article, the value of the real estate referred to in the preceding paragraph shall be the content of the financial statements or the information contained in the information statement on the tax situation of the taxpayer and its related parties, at the close of the previous immediate financial year.

The tax on the utility referred to in this article will be entered by the taxpayer by means of a declaration that it will present, in the authorized offices, within the fifteen days after obtaining of the income.

When the person making the payments referred to in this Article is resident abroad, the taxpayer shall enter the tax by declaration which he or she will present at the authorized offices, within 15 days of obtaining the income.

Article 160. In the proceeds of the disposal of immovable property, the source of wealth shall be deemed to be located in the national territory where such goods are located in the country.

The tax will be determined by applying the rate of 25% on the total income obtained, without any deduction, and the acquirer must be retained if he is resident in the country or resident in the country. (a) a foreign national with a permanent establishment in the country; otherwise, the taxpayer will enter the tax in a declaration which he will present to the authorized offices within 15 days of obtaining the income.

Taxpayers who have representatives in the country who meet the requirements set out in Article 174 of this Law, and provided that the disposal is recorded in public deed or is non-depreciable real estate participation certificates, may choose to apply on the gain obtained, the maximum rate to be applied on the excess of the lower limit which sets the rate contained in Article 152 of this Law; for these purposes, the gain shall be determined in the terms of Chapter IV of Title IV of This Law, without deducting the losses referred to in the last paragraph of Article 121 thereof. Where the transfer is entered in public deed, the representative shall inform the fedatary of the writing, the deductions to which his representation is entitled. In the case of non-depreciable real estate certificates, the representative shall calculate the tax resulting and shall enter it by a declaration in the approved office corresponding to his address within the following 15 days. to obtain the income. Notaries, judges, brokers and other fedarios, who may have notarial functions by law, shall calculate the tax under their responsibility, record it in writing and enter it by declaration in the authorized offices which correspond to your address within 15 days of the date on which the writing is signed. In the cases referred to in this paragraph, a declaration shall be lodged for all the enajenations even if it has not been imposed. Such fedatarios, within the fifteen days following the one in which the deed or minuta is signed, shall submit to the authorized offices the information that the Federation Fiscal Code establishes in respect of the operations. performed in the previous immediate exercise.

In enajenations that are entered in public deed, no representative shall be required in the country to exercise the option referred to in the preceding paragraph.

When the tax authorities practice an assessment and the tax authorities exceed by more than 10% of the consideration agreed to by the disposal, the total of the difference shall be deemed to be the income of the acquirer resident in the The tax will be determined by applying the 25% rate on the total of the difference, without any deduction, and the taxpayer must be aware of the tax by means of a declaration which he will present to the authorized offices within 15 days. following notification by the tax authorities.

In the case of free acquisitions, the tax shall be determined by applying the rate of 25% on the total value of the property of the property, without any deduction; person authorised by the tax authorities. The income received as donations referred to in Article 93 (XXIII) (a) of this Law is exempted from the payment of the tax.

When in the cases that are recorded in public deed, it is agreed that the payment will be made in partial payments in a period of more than 18 months, the tax that will be caused can be paid to the extent that it is the consideration and the proportion to which each corresponds, provided that the tax interest is guaranteed. The tax shall be paid on the 15th of the month following the month in which each payment is payable.

Article 161. With regard to the disposal of shares or securities representing the property of property, the source of wealth shall be deemed to be located in the national territory, where the person who issued them is resident in Mexico. where the book value of such shares or securities is directly or indirectly derived from more than 50% of real estate located in the country.

The treatment of the disposal of shares or securities that represent the property of property will be given to the disposal of the shares in the joint venture. For these purposes, the source of wealth shall be deemed to be located in the national territory, when the participating association in question is engaged in business activities wholly or partially in Mexico.

The treatment of the disposal of shares shall be given to the income arising from the creation of the usufruct or from the use of shares or securities referred to in the first paragraph of this article, or from the the transfer of the rights of users relating to such shares or securities. Income from legal acts in which the right to receive the income from shares or securities is transferred shall also be considered as income falling within this paragraph. In such cases, taxpayers who obtain income provided for in this paragraph may not choose to calculate the income tax in the terms of this article.

The tax will be determined by applying the 25% rate on the total amount of the transaction, without any deduction.

The retention shall be made by the acquirer if he is resident in the country or resident abroad with permanent establishment in Mexico. In a different case, the taxpayer shall enter the corresponding tax by means of a declaration which it shall submit to the authorised offices within 15 days of the receipt of the revenue.

Taxpayers who have a representative in the country who meets the requirements set out in Article 174 of this Law and are resident abroad whose income is not subject to a tax regime (a) preferential treatment in accordance with this Law or not resident in a country in which a system of territorial taxation is governed, may choose to apply on the gain obtained, the maximum rate to be applied on the excess of the lower limit than establishes the rate contained in Article 152 of this Law; for these purposes, the shall be determined in accordance with Chapter IV of Title IV of this Law, without deducting the losses referred to in the last paragraph of Article 121 thereof. In this case, the representative shall calculate the tax resulting and shall enter it by a declaration in the approved office corresponding to his address within 15 days of obtaining the entry.

Taxpayers who exercise the option referred to in the preceding paragraphs shall submit an opinion formulated by a public accountant registered with the tax authorities, in the terms that they indicate. the Regulation of this Law and the general rules that the Service of Tax Administration issue to the effect, in which it is indicated that the calculation of the tax was carried out according to the tax provisions. A copy of the designation of the legal representative shall also be accompanied, as an annex to the opinion.

For the purposes of the preceding paragraph, in the case of transactions between related parties, the public accountant shall report to the opinion the accounting value of the shares in the form, pointing to the in the determination of the sale price of the shares in which he considered the elements referred to in Article 179 (I) (e) of this Law, in determining the sale price of the shares.

When the public accountant does not comply with the provisions of this article, the penalties provided for in the Fiscal Code of the Federation will be secured.

Dealing with income from the disposal of shares issued by Mexican companies that is carried out through the bags of concession securities or derivatives markets recognized in the terms of the Law of the Securities Market, and provided that such shares are those which are placed between the large investor public in accordance with those general rules, or shares issued by foreign companies listed on those stock exchanges or markets of derivatives, or securities representing such shares or stock indices which are they are in such stock exchanges or derivatives markets, including the securities to be performed by financial transactions arising from capital referred to in Article 16-A of the Federation's Fiscal Code, relating to shares The tax shall be paid by means of a withholding tax which shall be paid by the intermediary of the contract. the market of values, applying the rate of 10% on the profit coming from the disposal of such shares or securities. For these purposes, the determination of the gain from the disposal of shares or securities shall be made for each transaction, using the calculation procedure laid down in the third and fourth paragraphs of Article 129 of this Law, as appropriate, without deducting the losses referred to in the ninth paragraph of that Article.

For the purposes of payment of the tax referred to in the preceding paragraph, the securities market intermediary shall carry out the withholding and the entire tax corresponding to the authorized offices, plus take the day 17 of the immediate month following the month in which the corresponding disposal is carried out. The withholding tax or the whole of the tax to be imposed shall be the final payment of the tax for the profit derived from such disposal. The payment of the tax on disposal shall not be required where the taxpayer is resident in a country with which a treaty is in force to avoid double taxation. For these purposes, the taxpayer shall provide the intermediary with a written statement of truth, stating that he is a resident for the purposes of the treaty and shall provide his/her registration number or tax identification issued by the taxpayer. competent tax authority. In the event that the resident abroad does not submit this information, the intermediary shall carry out the retention that corresponds in terms of the preceding paragraph.

The provisions of the ninth and tenth paragraphs shall not apply to the cases provided for in the last paragraph of Article 129 of this Law. In such cases, the maximum rate to be applied to the excess of the lower limit, which establishes the rate contained in Article 152 of this Law on the gain obtained, shall be applied, which shall be determined in accordance with the provisions of the Chapter. IV of Title IV of this Law, without deducting the losses referred to in the last paragraph of Article 121 thereof.

In the case of the disposal of shares issued by variable income investment companies, the tax shall be paid by means of a withholding tax by the distribution of shares of investment companies, applying the rate of 10% on the gain from such disposal. The determination of the profit coming from the disposal of shares issued by investment companies of variable income shall be made in accordance with the provisions of Article 88 of this Law, without deducting the losses referred to in the sixth paragraph of that Article. The withholding tax or the whole of the tax to be imposed shall be the final payment of the tax for the profit derived from such disposal. In the case of variable income investment companies referred to in Article 79 of this Law, the provisions of Article 166 thereof shall be provided for.

In the case of acquisition by foreign residents of shares or securities representing the property of property referred to in the first paragraph of this article, the the tax authorities may practice the operation in question and if the transaction exceeds 10% of the consideration agreed to by the disposal, the total of the difference shall be deemed to be the entry of the acquirer, in which case it shall be increased its cost for the acquisition of goods with the total of the difference cited. The tax shall be determined by applying, on the total of the difference without deduction, the maximum rate to be applied on the excess of the lower limit which establishes the tariff contained in Article 152 of this Law, a taxpayer by a declaration which he or she shall submit to the authorised offices within 15 days of the notification by the tax authorities, with the update and the corresponding surcharges. The provisions of this paragraph shall apply regardless of the residence of the enajenante.

In acquisitions free of charge, the tax shall be determined by applying the 25% rate on the total value of the securities of the shares or social parts, without any deduction; must be practised by a person authorised by the tax authorities. The income received as donations referred to in Article 93 (XXIII) (a) of this Law is exempted from the payment of the tax.

Dealing with values that are the ones that are placed among the large investor public in accordance with the general rules that the Tax Administration Service will issue when it comes to If they are out of stock, the tax authorities will consider the stock market price of the last event on the day of disposal, rather than the value of the value.

Trying to restructure companies belonging to a group, the tax authorities will be able to authorize the deferral of the payment of the tax derived from the profit in the disposal of shares within that group. In this case, the deferred tax payment shall be made within 15 days of the date on which a subsequent disposal is carried out for which the shares to which the corresponding authorisation relates are outside the group, updated since it was caused and until it is paid. The value of the disposal of the shares to be considered for the purpose of determining the gain shall be that which was used between independent parties in comparable transactions, or taking into account the value of the shares held by the tax authorities.

The authorisations referred to in this Article shall only be granted prior to the restructuring, and provided that the consideration resulting from the disposal only consists of the exchange of shares issued by the acquiring company of the shares that it transmits, as well as that the enajenante or the acquirer is not subject to a preferential tax regime or resides in a country with which Mexico does not have an effective broad agreement on the exchange of tax information. If the enajenante or the acquirer resides in a country with which Mexico does not have a broad agreement on the exchange of tax information, the authorization referred to in this paragraph may be obtained, provided that the taxpayer presents a (a) where it is established that it has authorised the foreign tax authorities to provide the Mexican authorities with information on the operation for tax purposes. The authorisation to be issued in accordance with the provisions of this paragraph shall be without effect if the information referred to above is not effectively exchanged, where appropriate, to the country concerned. The authorisations referred to in this paragraph may be subject to compliance with the requirements set out in the Regulation of this Law for this purpose.

In the case of the restructurings referred to above, the taxpayer must appoint a legal representative in the terms of this Title and submit to the tax authorities a the opinion formulated by a public accountant registered with those authorities, in the terms indicated by the Regulation of this Law and the general rules that the Tax Administration Service may issue, in which the Tax calculation was carried out in accordance with the tax provisions. The taxpayer must also comply with the requirements set out in the Regulation of this Law.

For the purposes of the preceding paragraphs, the group of companies whose shares with the right to vote representative of the share capital are directly or indirectly owned is considered group. of the same moral person in at least 51%.

The authorised taxpayer must submit to the competent authority the evidence that the shares subject to the authorisation have not left the group of companies. Such information shall be submitted within the first 15 days of the month of March of each year, after the date on which the disposal was carried out, during all the years in which those shares remain within that group. The shares will be presumed to have exited the group if the taxpayer does not comply in time with the provisions of this article.

When in accordance with the treaties concluded by Mexico to avoid double taxation, the gain obtained by the disposal of shares cannot be subject to taxation, as a result of a reorganization, restructuring, merger, division or similar operation, such benefit shall be granted by repayment in cases where the taxpayer resident abroad does not comply with the requirements laid down in the Regulation of this Law.

Financing entities resident abroad in which the Federal Government participates in its social capital, through the Secretariat of Finance and Public Credit or the Bank of Mexico, will be able to pay the income tax which is caused by the disposal of shares or securities referred to in this Article, on the basis of the profit determined in the terms of the sixth paragraph of this Article, provided that it complies with the provisions of this Article precept.

Article 162. Dealing with capital public debt exchange transactions, made by foreign residents other than the original creditor, the source of wealth shall be deemed to be corresponding to the income obtained in the operation is located in the national territory, where the person at whose charge the credit is treated is resident in Mexico.

The tax will be determined by applying the 25% rate on the total amount of the transaction, without any deduction. The withholding tax will be made by the resident in Mexico who acquires or pays the credit.

Taxpayers who have a representative in the country who meets the requirements set out in Article 174 of this Law may choose to apply the 40% rate on the gain obtained to be determined decreasing the revenue received by the acquisition cost of the credit or the title in question. In this case, the representative will calculate the tax that will result and will find out by statement in the authorized office that corresponds to your home address within 15 days of obtaining the income. In the case of credits denominated in foreign currency, the profit referred to in this paragraph shall be determined by considering the income received and the cost of acquisition in the foreign currency in question and the respective conversion shall be made to the the exchange rate of the day on which the disposal was made.

The option provided for in the preceding paragraph may be exercised only where the proceeds of the securities of the securities are not subject to a preferential or non-preferential tax regime in a country in which a system of territorial taxation.

Article 163. Dealing with financial operations derived from capital as referred to in Article 16-A of the Federation's Fiscal Code, the source of wealth is considered to be in national territory, where one of the parties holding such operations is resident in Mexico or resident abroad with permanent establishment in the country and is referred to shares or securities of those referred to in Article 161 of this Law.

For the purposes of the preceding paragraph, the tax shall be determined by applying the rate of 25% on the gain that the resident abroad receives from the financial transaction in question, calculated in the terms of Article 20 of this Law. The withholding or payment of this tax, as the case may be, shall be made by the resident in the country or by the resident abroad with permanent establishment in the country, except in cases where the operation is carried out through a bank or house of stock resident in the country, in which case the bank or the house of exchange shall make the corresponding retention.

For the purposes of withholding, paying, and integer tax on earnings from capital-derived financial transactions referred to shares placed in concessional-held securities exchanges to the Securities Market Act, as well as those relating to stock indexes representing the aforementioned shares, provided that they are performed on the recognized markets referred to in Sections I and II of Article 16-C of the Fiscal Code of the Federation, the provisions of the ninth and tenth paragraphs of the Article 161 of this Law.

Taxpayers referred to in the first two paragraphs of this Article, whose income is not subject to a preferential tax regime and who has a representative in the country that meets the requirements Article 174 of this Law may choose to apply the maximum rate to be applied to the excess of the lower limit set by the tariff contained in Article 152 of this Law, on the gain obtained in the terms of the Article 20 thereof, resulting from operations carried out during the month, reduced from the deductible losses, if any, of the other transactions carried out during the month by the resident abroad with the same institution or person, in accordance with the provisions of Article 146 of this Law. In this case, the representative shall calculate the tax resulting and shall enter it by a declaration in the approved office corresponding to his address at the latest on the 17th of the month following the month in which the retention was made.

The resident abroad will be able to apply the provisions of the previous paragraph, even if he has no legal representative in the country, if his counterpart in the operation is resident in Mexico, provided that he Last, find out the tax that corresponds and obtain the information necessary to determine the tax base. In order to apply the provisions of this paragraph, the resident in Mexico must state in writing to the tax authorities his decision to voluntarily assume the joint responsibility for the payment of the tax.

When the financial transaction resulting from capital is settled in kind with the delivery by the resident abroad of the shares or securities to which the transaction is concerned, the provisions of the Article 161 of this Law for the disposal of shares or securities involving such delivery. For the purposes of calculating the tax laid down in that Article, the income of the resident abroad shall be deemed to be the price charged in the settlement, added or decreased by the initial amounts which he would have received or paid for the conclusion of such an operation, or for the subsequent acquisition of the rights or obligations contained therein, updated for the period between the month in which it was received or paid and the month in which the transaction was made. In this case, it is considered that the source of wealth of income obtained by the disposal is in national territory, even if the derivative financial transaction has been concluded with another resident abroad.

When the settlement of a financial transaction resulting from capital stipulated to be settled does not occur, foreign residents shall cause the tax for the amounts they have received by to conclude such transactions, the tax shall be calculated by applying the rate of 25% or the maximum rate to be applied on the excess of the lower limit which sets the tariff contained in Article 152 of this Law, as appropriate established in the same. The resident in Mexico or abroad with permanent establishment in the country, with whom the operation has been concluded, must retain the tax. For the purposes of calculating this tax, the amounts concerned shall be updated for the period after the month in which they are collected and up to the month in which the operation expires. The resident in Mexico or abroad with permanent establishment in Mexico, must find that tax at the latest on the 17th day of the immediate calendar month after the month in which the operation expires.

When a resident abroad acquires outside the stock exchanges concessional in the terms of the Securities Market Act or recognized markets as referred to in section I of the Article 16-C of the Fiscal Code of the Federation, titles that contain rights or obligations of financial transactions derived from capital that are of those placed among the large public investor according to the general rules that to the effect issue the Tax Administration Service, at a lower price by 10% or more to the average of the starting and closing contributions of the day on which they are acquired, the difference shall be considered as income for the resident abroad who is acquiring those securities.

For the purposes of this Title, it is considered to be of interest, in the case of financial transactions arising from the debt referred to in Article 16-A of the Fiscal Code of the Federation, as well as of the transactions financial referred to in Article 21 of this Law, the gain to be determined in accordance with the following paragraphs. In this case, the source of wealth is considered to be in national territory when one of the parties that holds such operations is resident in Mexico or resident abroad with permanent establishment in the country and the operation is attributable to that permanent establishment. The source of wealth is considered to be in the national territory where the financial transactions arising from debt incurred by residents abroad are settled with the delivery of the ownership of debt securities issued by the persons residing in the country.

For the purposes of the preceding paragraph, the tax shall be calculated by applying to the profit resulting from the debt-related financial transaction in question, calculated in accordance with Article 20 of this Law, the corresponding fee in terms of Article 166 of the same. In the case where the operation is carried out in kind, the retention rate of 10% shall apply. In the case of the financial transactions referred to in Article 21 of this Law, the tax shall be calculated on the revenue received on the same terms as that laid down in that Article by applying the applicable rate in terms of this Title. The tax referred to in this paragraph shall be paid by means of a withholding tax by the person making the payments.

For the purposes of this article, a debt-derivative financial transaction is also considered to be cash-liquid, when payment of the same is made in foreign currency.

As provided for in the tenth paragraph of this Article, it shall be applicable to the gain arising from the disposal of the rights entered in such transactions, or to the initial amount received for holding the operation where the above rights are not exercised.

In the case of debt-derived, cash-settled financial transactions, the tax shall be calculated by applying to the gain obtained in such transactions, without any update, the rate that corresponds according to the tenth paragraph of this article to the beneficial owner of the operation.

In order to determine the interests of the resident abroad and their respective tax, in the case of financial transactions arising from debt in which they are paid periodically during their term Cash differences, may be deducted from the amounts that the resident abroad is charged with the differences that he has paid to the resident in the country.

The tax referred to in this Article shall not be paid, in the case of financial transactions arising from debt referred to in the Balance of Interest Rate of Balance or in credit securities issued by the Federal Government or the Bank of Mexico or any other that determines the Tax Administration Service by means of general rules, placed in Mexico among the large public investor, or that in addition to being referred to to such a fee or securities, to be at another interest rate, or to other underlying interest rates than to its they are referred to the Equilibrium Interbank Interest Rate or to any of the aforementioned securities, or to this rate or securities and to other interest rates, provided that they are held in stock exchange or recognized markets, in the terms of Sections I and II of Article 16-C of the Tax Code of the Federation and that the beneficial beneficiaries are resident abroad.

In the event that it is not possible to identify the foreign resident beneficial owner of earnings from the financial transactions referred to in the preceding paragraph, the Settlement partners shall not be required to carry out the relevant withholding tax or have the joint liability referred to in Article 26 of the Tax Code of the Federation.

Dealing with permanent establishments in the country of residents abroad, when the payments for the concepts indicated in this article are carried out through the central office of the society or other In the case of a foreign payment, the retention must be made within 15 days from the date on which the payment is made abroad or the amount of the payment is deducted for the permanent establishment, whichever is the case. first.

Article 164. In income from dividends or profits, and in general by profits distributed by moral persons, the source of wealth shall be deemed to be on national territory, when the person who distributes them resides in the country.

It is considered a dividend or utility distributed by moral people:

I.           The income referred to in Article 140 of this Law. In such cases, the moral person making the payments shall be in accordance with Article 10 of the same Law.

The tax referred to in this fraction shall be entered in conjunction with the provisional payment of the corresponding month.

Trying to reduce the capital of moral people, the calculation of the distributed utility per action determined according to Article 78 of this Law, the balances of the net tax profit accounts shall be reduced by that utility. These balances shall be determined by dividing the balances of the accounts referred to by the moral person at the time of the reduction, among the total shares of the same person to the date of the repayment, including those corresponding to the reinvestment or capitalization of profits or any other concept that integrates the accounting capital of the same.

Dealing with distributed utilities to be determined under the terms of Article 78 of this Law, the corresponding tax will be calculated and entered into the terms of the referred article.

The moral persons who distribute the dividends or profits to which this fraction refers must retain the tax that is obtained from applying the 10% on such dividends or profits, and to provide the persons to whom they make the payments referred to in this paragraph, to indicate the amount of the dividend or utility distributed and the tax withheld. The tax paid will be final.

II.          The profits in cash or goods sent by the permanent establishments of moral persons residing abroad to the head office of the company or to another permanent establishment of the company abroad, which does not come from the balance of the net tax utility account or the foreign resident's capital remittances account, respectively. In this case, the permanent establishment must find out, as the tax on its charge, that the rate of the first paragraph of Article 9 of this Law is applied. For these purposes, the dividends or distributed profits will be added with the income tax to be paid in the terms of this article. In order to determine the income tax that must be added to the dividends or distributed profits, the amount of those profits or remittances will be multiplied by the factor of 1.4286 and the result will be applied to the rate of Article 9 of the aforementioned income tax. Law.

For the purposes of the preceding paragraph, the foreign resident's net tax income account shall be added to the net tax utility of each exercise determined in accordance with the provisions of article 77 of this Law, as well as with the dividends or profits received from moral persons resident in Mexico for actions that form part of the estate affected the permanent establishment, and will be reduced by the amount of the profits that the permanent establishment sends to its the central office or other of its establishments abroad in cash or in goods, as well as the distributed utilities referred to in section III of this article, where in both cases they come from the balance of that account. For the purposes of this paragraph, no dividends or profits are included in shares or reinvested in the subscription and capital increase of the same person who distributes them, within 30 calendar days of their distribution. In the determination of the net tax utility of the resident abroad, the provisions of Article 77 of this Law shall apply, with the exception of the first paragraph.

The capital remittance account referred to in this article shall be added to the received capital remittances from the central office of the company or from any of its establishments abroad and shall be reduced by the amount of capital remittances reimbursed to such establishments in cash or in goods. The balance of this account held on the last day of each financial year shall be updated for the period from the month in which the last update was made and until the last month of the financial year in question. Where remittance is repaid or sent after the update provided for in this paragraph, the balance of the account held at the date of repayment or collection shall be updated for the period from the month in which the item was made. last update and up to the month in which the refund or perception is made.

III.        Permanent establishments making refunds to their central office or to any of their establishments abroad shall consider such reimbursement as a distributed utility, including those arising from termination. of its activities, in the terms provided for in Article 78 of this Law. For these purposes, the value of the remittances provided by the central office or any of its permanent establishments abroad shall be considered as an action, in the proportion that this represents in the total value of the remittance account of the permanent establishment and as a capital account of the capital remittances account provided for in this Article.

Permanent establishments shall determine and find out the tax corresponding to the result that is obtained in accordance with the provisions of this fraction; applying the rate of the first paragraph of Article 9 of this Law, to the amount resulting from multiplying that result by the factor of 1.4286. Payment of this tax shall not be required where the utility comes from the balance of the net tax utility of the resident abroad referred to in the previous fraction. The tax resulting from the terms of this fraction must be found in conjunction with the tax which, if applicable, is in accordance with the previous fraction.

IV. Dealing with dividends and in general on earnings distributed by the permanent establishments referred to in fractions II and III of this Article will be subject to an additional rate of 10% on earnings or repayments. Permanent establishments shall find out the tax resulting from the terms of this fraction in conjunction with which, where appropriate, they are in accordance with the third paragraph of this Article and shall have the final payment character.

For the purposes of fractions II and III of this article it is considered that the last thing that the permanent establishment sends abroad are capital repayments.

Article 165. Dealing with income earned by a resident abroad through a moral person referred to in Title III of this Law, the source of wealth shall be deemed to be finds on national territory, when the moral person is resident in Mexico.

The tax will be determined by applying, on the distributable remnant, the maximum rate to be applied on the excess of the lower limit that establishes the tariff contained in Article 152 of this Law. The tax must be entered by the moral person on behalf of the resident abroad, together with the declaration referred to in Article 96 of this Law or, if applicable, on the dates established for the same. The said moral person must provide the contributors with a record of the integer made.

Article 166. For interest income, the source of wealth shall be deemed to be in national territory when the capital is placed or invested in the country, or when interest is paid by a resident in the country or a resident in the country. foreign establishment with permanent establishment in the country.

It is considered to be interests, whatever the name with which they are designated, the yields of credits of any kind, with or without a mortgage guarantee and with the right or not to participate in the profits; returns on public debt, bonds or bonds, including premiums and prizes treated as income from such securities, the prizes paid in the securities loan, discounts for the placement of securities, bonds, or bonds; of the commissions or payments to be made on the occasion of the opening or guarantee of appropriations, even if they are contingent, of the payments made to a third party on the occasion of the opening or guarantee of claims, even if these are contingent, of the payments made to a third party on the basis of the acceptance of an endorsement, the granting of a guarantee or liability of any kind, of the gain arising from the disposal of the securities placed among the large investor public referred to in Article 8 of this Law, as well as the gain in the disposal of shares of investment companies in debt instruments referred to in the Law of the investment companies and of the variable income investment companies referred to in Article 79 of this Law, of the adjustments to the acts for which the income referred to in this Article is derived from the the application of indices, factors or any other form, including adjustments made to the principal by reason of the fact that the claims or transactions are denominated in investment units. Interest is the gain derived from the disposal of a resident abroad, of credits by a resident in Mexico or of a resident abroad with permanent establishment in the country, when they are acquired by a resident in Mexico or a resident abroad with permanent establishment in the country.

The profit coming from the disposal of shares of the investment companies in debt instruments and of the variable income investment companies referred to in the preceding paragraph shall be calculated decreasing the income obtained in the disposal, the original amount of the investment. For these purposes, the amount paid to the investment company, per share, for the acquisition of the shares that are sold, updated from the date on which the shares were acquired, shall be deemed to be the original amount of the investment. until the date they are in.

The tax shall be calculated by applying to the gain obtained pursuant to the preceding paragraph the retention rate corresponding to this item to the beneficial owner of such gain. Investment companies which make payments for the disposal of the shares are obliged to carry out the withholding and the entire tax corresponding to the provisions of this Article. The variable income investment companies referred to in this Article shall provide, both to the Tax Administration Service and to the taxpayer, the information relating to the share of the gain corresponding to the shares in the Mexican Stock Exchange of Securities Concessional in the terms of the Securities Market Act.

It is considered to be an interest in credit income obtained by a resident abroad on the basis of the acquisition of a right of credit of any kind, present, future or contingent. For the purposes of this paragraph, it is considered that the source of wealth is in national territory when the right of credit is alienated, by a resident in Mexico or a resident abroad with permanent establishment in the country. This income shall be determined by decreasing the nominal value of the credit claim cited, with its yields and accessories which have not been subject to retention, the price agreed upon in the disposal.

In the case of the gain derived from the disposal of credits by a resident in Mexico or a resident abroad with permanent establishment in the country, made by a resident in the country The tax will be calculated by applying to the difference between the amount that the resident abroad obtains for the disposal of the credit and the the amount that the original debtor has received for that credit, the retention rate that corresponds in accordance with this article to the beneficial owner of such gain.

The tax will be paid by means of a withholding tax that will be made by the person who makes the payments and will be calculated applying to the interest that the taxpayer obtains, without any deduction, the rate that in each case is mentioned below:

I. 10% in the following cases:

a) To the interest paid to the following persons, provided they provide the Tax Administration Service with the information it requests through general rules on financing granted to residents in the country.

1. Financing entities belonging to foreign states, provided they are the effective beneficiaries of interest.

2. Foreign banks, including investment banks, provided they are the beneficial beneficiaries of interest.

will have the treatment of foreign banks the limited object financing entities resident abroad, always they comply with the percentages of placement and collection of resources that establish the general rules that the Tax Administration Service may issue and be the beneficial beneficiaries of the interest.

3. Entities that place or invest in the capital country that comes from credit titles that they issue and that are placed in the foreign to the large investor public in accordance with the general rules that the Tax Administration Service will issue to the effect.

b) To interest paid to overseas residents from credit securities placed through banks or exchange houses, in a country with which Mexico does not have a treaty in force to avoid double taxation, provided that the documents on which the corresponding financing operation consists of the notification referred to in the second paragraph of Article 7 of the Securities Market Act, before the National Banking and Securities Commission, in accordance with the provisions of that Law.

c) To the acquisition of a credit claim of any kind, present, future or contingent. In this case, it should be collected by the resident in Mexico or resident abroad with permanent establishment in the country, in the name and on behalf of the resident abroad and must be heard within 15 days of the the disposal of credit claims.

II. 4.9% in the following cases:

a) To interest paid to overseas residents from credit titles placed among the general public the investor referred to in Article 8 of this Law, as well as the gain from its disposal, the receipts of certificates, acceptances, receivables, loans or other credits by credit institutions, companies Limited-object financial corporations, multiple-object financial corporations, which for the purposes of this Law, they form part of the financial system or of auxiliary credit organizations, as well as those placed through banks or exchange houses in a country with which Mexico has a treaty in force to avoid double taxation, provided that the notification referred to in the second paragraph of Article 7 of the Securities Market Act has been filed with the National Banking and Financial Commission for the documents on which the corresponding financing operation is recorded. Securities, in accordance with the provisions of that Law and are met with the requirements of information to be laid down in the general rules which the Tax Administration Service may issue. In the event that the above requirements are not met, the applicable fee shall be 10%.

b) To interest paid to foreign resident financing entities in which the Federal Government, through the Secretariat of Finance and Public Credit, or the Central Bank, participates in its share capital, provided that they are the effective beneficiaries of the same and comply with the general rules that the Service of Tax Administration.

III. 15%, interest paid to reinsurers.

IV. 21%, to the interests of the following cases:

a) Those paid by credit institutions to residents abroad, other than those reported in the fractions prior to this article.

b) Those paid to foreign suppliers by disposal of machinery and equipment, which are part of the fixed asset of the acquirer.

(c) Those paid to residents abroad to finance the acquisition of the goods referred to in the preceding paragraph and in general for habilitation and/or marketing, provided that any of these circumstances are entered in the contract.

When the interest to which this fraction refers is paid by credit institutions to the subjects mentioned in the fraction I of this Article shall apply the rate referred to in this last fraction.

V. To interests other than those mentioned in previous fractions, the maximum rate will be applied to apply on the excess of the lower limit set by the tariff contained in Article 152 of this Law.

Individuals who are required to make payments for the concepts indicated in this article are required to make the corresponding retention.

When the interest derived from securities to the bearer will only have tax obligations the retainer, the resident abroad being released from any responsibility other than that of accepting the retention.

The tax referred to in the preceding paragraphs shall not be caused when interest is paid by foreign establishments of credit institutions in the country referred to in Article 48 of the this Act.

The fees provided for in Sections I and II of this Article shall not apply if the beneficial owners, either directly or indirectly, individually or jointly with related persons, they receive more than 5% of the interest derived from the securities in question and are:

1. Shareholders of more than 10% of the voting shares of the issuer, directly or indirectly, individually or together with related persons, or

2. Moral persons who in more than 20% of their shares are the property of the issuer, directly or indirectly, in form individually or in conjunction with related persons.

In the cases referred to in numerals 1 and 2 above, the applicable fee shall be the maximum rate to be applied on the excess of the lower limit which sets the tariff contained in Article 152 of this Regulation. Law. For these purposes, they are considered persons related when one of them has an interest in the business of the other, there are common interests between the two, or a third person has an interest in the business or property of the other.

For the purposes of the provisions of this Article, the withholding of tax on interest earned from credit securities placed among the large investor public referred to in Article 8 of the This Law, as well as the receipts of certificates, acceptances, receivables, loans or other claims by credit institutions, limited-object financial corporations, multi-purpose financial corporations or organisations credit auxiliaries shall be made by the securities depositaries of the said securities, at the time of transfer to the acquirer in the case of disposal, or at the time of the enforceability of the interest in other cases. In the case of free-of-payment transactions, the person liable to hold the holding shall be the intermediary who receives from the acquirer the resources of the transaction in order to deliver them to the securities of the securities. In such cases, the issuer of such securities shall be released from holding the holding.

In cases where a securities depository receives only orders for the transfer of securities and is not provided with the resources to carry out the retention, the securities depository may be released from the securities the obligation to retain the tax, provided that it provides the securities intermediary or depositary which receives the securities the necessary information at the time of the transfer. In this case, the securities intermediary or depositary receiving the securities shall calculate and retain the tax at the time of its enforceability. The information referred to in this paragraph shall be determined by rules of a general nature which shall be issued by the Tax Administration Service.

Where the disposal of the securities referred to in this Article is effected without the intervention of an intermediary, the resident abroad who holds those securities shall designate the depositary of securities that transfers the securities for the entire tax, in the name and on behalf of the enajenante. That integer shall be carried out not later than the 17th day of the month following the date on which the disposal is carried out. For these purposes, the resident abroad must provide the depositary of securities with the resources necessary for the payment of the tax. In this case, the securities depository shall be liable in solidarity with the tax applicable. Where the securities depository is also required to transmit the securities to another intermediary or securities depository, it shall provide them with the price of disposal of the securities at the time of the transfer of the securities. shall be as provided for in the preceding paragraph.

When reference is made to an intermediary in this article, the country's credit institutions and stock houses shall be understood as such that they intervene in the acquisition of securities to which the Article.

In the interest of a financial lease the source of wealth will be considered to be in the national territory, when the goods are used in the country or when the payments made abroad be deducted, in whole or in part, by a permanent establishment in the country, even if the payment is made through any establishment abroad. Except proof to the contrary, it is presumed that the goods are used in the country, when the person who uses or enjoys the property is resident in the same or resident abroad with permanent establishment in the country. It is also considered that there is a source of wealth in the country, when the payment is resident in Mexico or resident abroad with permanent establishment in the country.

For the purposes of the preceding paragraph, the tax shall be calculated by applying the rate of 15% to the amount which has been agreed as an interest in the respective contract, with the retention of persons who make the payments.

Dealing with permanent establishments in the country of residents abroad, when the payments for the concepts indicated in this article are carried out through the central office of the society or other In the case of a foreign payment, the retention must be made within 15 days from the date on which the payment is made abroad or the amount of the payment is deducted for the permanent establishment, whichever is the case. first.

Except for the payment of income tax to the interest mentioned below:

a. Those who derive from credits granted to the Federal Government or the Bank of Mexico and those coming from bonds for them issued, acquired and paid abroad.

b. Those arising from term credits of three or more years, granted or guaranteed by financing entities foreign residents engaged in promoting export by granting loans or guarantees on preferential terms.

c. Those arising from credits granted or guaranteed on preferential terms by financing entities foreign residents to institutions authorized to receive deductible donations in the terms of this Law, provided the latter use them for the development of assistance or charitable activities.

d. Those deriving from credits granted to the Federal Government or the Bank of Mexico and those from debt securities issued by the Federal Government or the Bank of Mexico, placed in Mexico among the large public investor, provided that the beneficial owners are resident abroad.

In the event that it is not possible to identify the beneficial owner resident abroad of the interest of the claims or securities referred to in the preceding paragraph, financial intermediaries shall not be required to carry out the relevant withholding tax or have the joint liability referred to in Article 26 of the Tax Code of the Federation.

Article 167. For royalty income, technical assistance or advertising, the source of wealth shall be deemed to be in national territory where the goods or rights for which royalties or technical assistance are paid are considered. take advantage of Mexico, or when royalties, technical assistance or advertising are paid, by a resident on national territory or by a resident abroad with permanent establishment in the country.

The tax will be calculated by applying to the income that the taxpayer gets, without any deduction, the rate that in each case is mentioned:

I.......... Royalties for the use or temporary enjoyment of railway cars. .................................... 5%

II......... Royalties other than those included in fraction I, as well as technical assistance 25%

Dealing with royalties for the use or temporary use of patents or certificates of invention or improvement, trademarks and trade names, as well as for advertising, the rate applicable to the income obtained the taxpayer for such concepts shall be the maximum rate to be applied on the excess of the lower limit which establishes the tariff contained in Article 152 of this Law.

When contracts involve a patent or certificate of invention or improvement and other related concepts referred to in section II of this precept, the tax shall be calculated applying the fee corresponding to the part of the payment that is made for each of the concepts. In the event that the proportional share of each payment corresponding to each concept cannot be distinguished, the tax shall be calculated by applying the rate set out in the fraction II of this Article.

For the purposes of this article, it shall be understood that the use or temporary enjoyment is also granted when the goods or rights referred to in the article are put into effect. 15 -B of the Tax Code of the Federation, provided that such disposal is conditioned on the productivity, use or subsequent disposal of the same goods or rights. In this case, the fees referred to in this Article shall apply on the income obtained, without any deduction, on the basis of the right or right in question.

For the purposes of this article, implies the use or granting of the use of a copyright, of an artistic, scientific or literary work, among other concepts, the retransmission of visual images, sounds or both, or the right to allow access to the public to such images or sounds, where in both cases they are transmitted by satellite, cable, optical fibre or other similar means and that the content being retransmitted is protected by the copyright.

Individuals who are required to make payments for the concepts indicated in this article are required to make the corresponding retention.

Dealing with permanent establishments in the country of residents abroad, when the payments for the concepts indicated in this article are carried out through the central office of the society or Other establishments are located abroad, the retention must be carried out within the next fifteen days from the time the payment is made abroad or the amount of the payment is deducted for the permanent establishment, which occurs first.

Article 168. For income from construction services, installation, maintenance or assembly in real estate, or for inspection or supervision activities related to them, the source of wealth shall be deemed to be in territory national when performed in the country.

The tax will be determined by applying the rate of 25% on the income obtained, without any deduction, and the person who makes the payments must be retained.

Taxpayers who have a representative in the country who meets the requirements set out in Article 174 of this Law may choose to apply the maximum rate to apply on the excess of the limit. less than the rate contained in Article 152 of this Law, on the amount that results from the reduction of the income obtained, the deductions authorized by Title II of this Law, which directly affect such income, independently of the place where they were carried out. In this case, the representative shall calculate the tax resulting and shall find out by means of a declaration that he shall submit to the authorized offices corresponding to the place where the work is carried out, within the month following that of the conclusion of the same.

Article 169. The source of wealth will be considered to be in national territory when the lottery, raffle, draw or game with bets and contests of all kinds are held in the country. Unless proof to the contrary, it is understood that the lottery, raffle, draw or game with bets and contests of all kinds is celebrated in the country when the prize is paid in the same.

The tax for lottery prizes, raffles, sweepstakes and contests, will be calculated by applying the 1% rate on the value of the prize corresponding to each ticket or whole ticket, without any deduction, always that the revenue referred to in this paragraph is not taxed by the federal authorities with a local tax, or the tax established does not exceed 6%. The tax rate referred to in this Article shall be 21%, in those federal entities applying a local tax on the income referred to in this paragraph, at a rate exceeding 6%.

The wagering prize tax will be calculated by applying 1% on the total value of the amount to be distributed among all the awarded tickets.

The refund for the ticket that allowed to participate in lotteries is not considered as the prize.

The tax will be paid by withholding tax when the person making the payment is resident on national territory or resident abroad with permanent establishment located in the country or will find out by declaration in the approved office within 15 days of obtaining the entry, when the person who pays the prize is a resident abroad.

Article 170. In the case of income obtained by natural or moral persons, in the exercise of their artistic or sporting activities, or the performance or presentation of public spectacles, consider that the source of wealth is in national territory when such activity, or presentation is carried out in the country.

They are considered to be included in the services provided by a resident abroad related to the presentation of the public shows, those who are destined to promote such presentation, including activities carried out on national territory as a result of the reputation of the resident abroad as an artist or athlete.

This article includes income from foreign residents who provide services, grant the use or temporary enjoyment of goods or dispose of goods, which relate to the filing of the public, artistic or sporting events referred to in this Article. It is presumed, unless proof to the contrary, that the artists, sportspersons or persons presenting the public show, have direct or indirect participation in the benefits obtained by the service provider who grants the temporary or enajene use such goods.

The tax will be determined by applying the 25% rate on the total income obtained without any deduction, and the person who makes the payments must be retained, provided that the person is resident in the country or abroad with permanent establishment in the country. In other cases, those who obtain the income from the concepts referred to in this Article shall calculate the tax and find out by means of a declaration that they shall submit to the authorised offices corresponding to the place where the show or sporting event, the next day the income was obtained.

Taxpayers who have representatives in the country who meet the requirements set out in Article 174 of this Law, may choose to apply the maximum rate to be applied to the surplus from the lower limit set by the tariff contained in Article 152 of this Law, on the amount resulting from the reduction of the income obtained from the deductions authorized by Title II or Chapter II, Sections I or II of Title IV of this Law Law, as appropriate, that directly affect such income, independently of the place where they were carried out. In this case, the representative shall calculate the tax which results and will find out by means of a declaration that he will present to the authorized offices corresponding to the place where the public, artistic or sporting spectacle takes place, within the month following the conclusion of the same. This option may only be exercised when the guarantee of the tax interest is granted for an amount equivalent to that corresponding to the tax determined in accordance with the fourth paragraph of this Article, at the latest the following day when the income. In the latter case, the retainer shall be released from the holding referred to in the preceding paragraph.

taxpayers who receive income in the terms of this Article shall not be applicable to the provisions of Articles 154 and 156 of this Act for such income.

Article 171. Dealing with income taxed by this Title, collected by persons, entities deemed to be moral persons for tax purposes in their place of residence or which are deemed to be transparent in the same or any other legal figure created or incorporated under foreign law, the revenue of which is subject to a preferential tax regime, shall be subject to a withholding tax of 40% over such income, without any deduction, as opposed to the provision of the other provisions of this Title. The tax referred to in this paragraph shall be paid by withholding tax when the person making the payment is resident in Mexico or resident abroad with permanent establishment in the country.

The provisions of the preceding paragraph shall not apply to income from dividends and profits distributed by moral persons or, interest paid to foreign banks and to the interest paid to residents abroad, resulting from the placement of securities referred to in Article 8 of this Law, as well as the securities placed abroad, provided for in Article 166 of the same Law, in which case they shall be the provisions of Articles 10, 77 and 166 fractions I and II and paragraphs 20 and the first of the latter provision, as appropriate, provided that the requirements laid down in those provisions are met.

Dealing with income from mediations subject to preferential tax regimes that obtain residents abroad, the source of wealth is considered to be in territory. national when making the payment is resident in Mexico or is a permanent establishment of a resident abroad. Payments by commissions, corretages, agency, distribution, consignment or estimatory and in general, revenue from the management of foreign interests are considered as income.

For the purposes of the preceding paragraph, the tax shall be calculated by applying the rate of 40% on the income obtained, without any deduction, the person making the tax shall be retained. payments. Such retention shall be made by means of a declaration which shall be submitted within 15 days of the date of the operation to the offices authorised by the tax authorities.

Article 172. They are considered taxable income, in addition to those mentioned in this Title:

I. The amount of debts forgiven by the creditor or paid by another person. In this case, the source of wealth is considered to be in national territory when the creditor who makes the debt forgiveness is a resident in the country or resident abroad with permanent establishment in Mexico.

II. Those obtained by granting the right to participate in a business, investment or any payment for to hold or participate in legal acts of any kind. In this case, the source of wealth is considered to be in national territory when the business, investment or legal act is carried out in the country, provided that it is not a contribution to the social capital of a moral person.

III. Those arising from damages and income from criminal clauses or conventional. In this case, it is considered that the source of wealth is in national territory when the person making the payment of the income to which this fraction refers is a resident in Mexico or a resident abroad with permanent establishment in the country.

IV. Those that stem from the alienation of commercial credit. The source of wealth shall be deemed to be on national territory where the commercial credit is attributable to a person residing in the country or to a resident abroad with permanent establishment located in the country.

For the purposes of this fraction, a source of wealth shall be deemed to exist on national territory, where the resident abroad has assets used by a resident in Mexico or by a resident abroad with permanent establishment in the country, provided that the consideration derived from the disposal exceeds the market price of such goods. The difference between the market price of the assets on the date on which their ownership is transferred and the total amount of the market shall be presumed, unless proof to the contrary, as income derived from the sale of the commercial credit. pactated consideration, when the latter is greater. The tax authorities will be able to practice the market price of the assets owned by the resident abroad and in the event that the latter is less than 10% of the market price considered by the taxpayer. to determine the tax, the difference will be considered income for the purposes of this article.

The provisions of this fraction shall not apply to the gain in the disposal of shares.

The tax referred to in this Article shall be calculated by applying on income, without deduction, the maximum rate to be applied on the excess of the lower limit set by the tariff contained in Article 152 of this Law. In the case of part I above, the tax shall be calculated on the total amount of the debt forgiven, the payment of which is payable by the creditor who forgives the debt, by means of a declaration which he shall submit to the authorised offices on the following day to which the waiver is made.

Dealing with the income referred to in the second part of this article, the tax shall be calculated on the gross amount of the agreed consideration and in the case of the income indicated in the fraction III of the same, shall be determined on the gross amount of the indemnities or payments derived from penal or conventional clauses.

In the case of income referred to in section IV of this Article, the tax shall be calculated on the gross amount of the agreed consideration. In the case provided for in the second paragraph of the said fraction, the tax shall be calculated on the difference between the total amount of the agreed consideration and the value of the assets at the time the property is transferred, in accordance with the endorsement of the case by person authorised by the tax authorities, as the case may be.

In respect of the income mentioned in fractions II, III and IV of this article, the tax shall be paid by means of a withholding tax by the person making the payment if he is resident in the country or resident abroad with permanent establishment in Mexico. In a different case, the taxpayer shall enter the corresponding tax by means of a declaration which it shall submit to the authorised offices within 15 days of the receipt of the revenue.

Article 173. In the case of income from premiums paid or transferred to reinsurers, the source of wealth shall be deemed to be in national territory where such premiums paid or transferred are paid by a resident in the country or by a resident in the country. foreign establishment with permanent establishment in the country.

The tax will be calculated by applying to the gross amount that is paid to the resident abroad, without any deduction, the rate of 2%. The tax shall be paid by means of a withholding tax by the person making the payments.

Article 174. The representative referred to in this title must be resident in the country or resident abroad with permanent establishment in Mexico and keep at the disposal of the tax authorities, the documentation related to the payment of the tax on behalf of the taxpayer, for five years from the day following the day on which the declaration was lodged.

When the acquirer or the borrower of the work assumes the responsibility of solidarity, the representative will cease to be in solidarity; in this case the person responsible will have the availability of the documents to This article refers to the case where the tax authorities exercise their powers of verification.

The tax payers who are tax payers in this Title who during the calendar year acquire residency in the country will consider the tax paid during the calendar year as definitive. and shall calculate in the terms of Title IV of this Law the income tax that is levied or payable as of the date on which they acquired the residence.

Taxpayers who earn income from those mentioned in Article 168 of this Law, when they constitute permanent establishment in the country for their activities, will present a declaration within the three months following the date on which they constitute permanent establishment in the country by calculating the tax in the terms of Titles II or IV thereof, as the case may be, and shall make provisional payments from the following financial year to that in which constitute permanent establishment.

I. If when they did not constitute permanent establishment the tax was paid by withholding of 25% on the income obtained, they will apply that rate to the cumulative revenue for each interim payment.

II. If, when they did not constitute permanent establishment, the rate established in the first paragraph of Article 9 of this Law was applied to the amount resulting from the reduction of the income obtained from the deductions authorized by Title II of the same, shall determine their provisional payments as indicated in Articles 14 or 106 of this Law as the case may be.

Dealing with moral people will start their fiscal year on the date that their activities constitute permanent establishment in the country.

Article 175. For the purposes of this Title, revenue shall be considered as:

I. Salaries and in general for the provision of a subordinate personal service, those referred to in Article 94 of this Law, except for remuneration to members of management, supervisory, advisory or any other board, as well as the fees to administrators, commissioners and general managers.

II. Fees and, in general, for the provision of a professional service, those indicated in Article 100 of this Law.

III. Grant the use or temporary enjoyment of real estate, as referred to in Article 114 of this Law.

IV. Disposal of goods, derivatives of the acts mentioned in Article 14 of the Fiscal Code of the Federation, including in the case of expropriation.

V. Awards that result from the celebration of lotteries, raffles, raffles or games with bets and contests of all kinds, those mentioned in Article 137 of this Act.

VI. Business activities, revenue derived from the activities referred to in Article 16 of the Tax Code of the Federation. The revenue referred to in Articles 153 to 173 of this Law is not considered to be included.

VII. Interests, those provided for in Articles 163 and 166 of this Act, which are considered to be credit returns of any nature.

The provisions of fractions II, III and V of this article are also applicable to moral persons.

TITLE VI

OF PREFERENTIAL TAX REGIMES AND MULTINATIONAL COMPANIES

CHAPTER I

OF PREFERRED TAX REGIMES

Article 176. Residents in Mexico and foreign residents with permanent establishment in the country are required to pay the tax in accordance with this Chapter, for income subject to preferential tax regimes that they obtain through foreign entities or legal entities in which they participate, directly or indirectly, in the proportion that corresponds to them for their participation in them, as well as for the income they obtain through legal entities or figures foreign tax transparent.

The income referred to in this Chapter is those generated in cash, goods, services or credit by foreign legal entities or figures and those that have been presumed to be the tax authorities, even if such revenue has not been distributed by them to the taxpayers of this Chapter.

For the purposes of this Act, will be considered as income subject to preferential tax regimes, those that are not taxed abroad or are with an income tax of less than 75% of the tax on the income that would be caused and paid in Mexico, in the terms of Titles II or IV of this Law, as applicable. The dividend tax referred to in the second paragraph of Article 140 of this Law shall not be considered at the time of determining the income subject to preferential tax regimes.

Revenue shall be deemed to be subject to a preferential tax regime where the income tax effectively caused and paid in the country or jurisdiction in question is lower than the tax caused in Mexico in the terms of this article by the application of a legal, regulatory, administrative, resolution, authorization, return, accreditation or any other procedure.

To determine whether the income is subject to preferential tax regimes in the terms of the preceding paragraph, each of the operations that generates them will be considered. Where income is obtained by the taxpayer through a foreign entity in which it is a member, partner, shareholder or beneficiary of it, or through a legal figure deemed to be a tax resident in any country and is taxed as such in the income tax in that country, shall be considered the utility or loss generated by all the operations carried out in that country.

In cases where revenues are indirectly generated through two or more foreign entities or legal entities, the taxes effectively paid by all entities or legal entities shall be considered to be through which the taxpayer made the transactions that generate income, for the purposes of determining the lower income tax referred to in this article.

They will have the tax treatment of this Chapter, the income that is obtained through foreign legal entities or legal entities that are transparent tax abroad, even if those revenues do not have a tax regime. preference.

Foreign entities or legal entities are considered to be tax transparent, when they are not considered as income tax payers in the country in which they are constituted or have their principal administration. or effective address and revenue is attributed to its members, partners, shareholders, or beneficiaries.

Are considered foreign entities, companies and other entities created or constituted under foreign law that have their own legal personality, as well as moral persons constituted under Mexican law are resident abroad, and are considered as foreign legal figures, trusts, associations, investment funds and any other similar legal figure of foreign law that has no legal personality of its own.

Not to be considered as income subject to preferential tax regimes in the terms of this article, those obtained through foreign entities or legal entities that perform business activities, except that their income liabilities represent more than 20% of the total of their income.

For the purposes of this Chapter, they are considered to be passive income: interest; dividends; royalties; earnings in the disposal of shares, securities or intangible assets; earnings from financial transactions derivatives where the underlying relates to debts or shares; commissions and mediations, as well as income from the disposal of goods not physically located in the country, territory or jurisdiction where the underlying is or is foreign legal entity or entity and revenue from services provided outside that country, territory or jurisdiction, as well as income arising from the disposal of immovable property, those arising from the granting of the use or temporary enjoyment of property, as well as revenue received by way of free.

Not to be considered income subject to preferential tax regimes generated through foreign entities that are tax residents in any country, territory or jurisdiction and are taxed as such in income tax in the same way, where its profits are taxed at a rate equal to or greater than 75% of the rate laid down in Article 9 of this Law, provided that all of its revenue is taxable, except for dividends received from entities that are residents of the the same country, territory or jurisdiction, and that their deductions are or have actually been (a) the period of time of the year of the year of the year of the year of the year of the year. For these purposes, it is presumed, unless proof to the contrary, that the elements provided for in this paragraph are not met.

Neither shall any income subject to preferential tax regime be considered to be earned by foreign legal entities or figures for royalties paid for the use or grant of use of a patent or industrial secrets, provided that the following is true:

I. That such intangibles have been created and developed in the country where the entity or legal entity of the foreign entity is located or resides. It will not be necessary to comply with this requirement, if such intangibles were or are acquired at prices or amounts that would have been used by independent parties in comparable transactions, by such entity or legal figure abroad.

II. That paid royalties do not generate an authorized deduction for a resident in Mexico.

III. That royalty payments received by that entity or foreign legal figure are made at prices and amounts that they would have used with or between independent parties in comparable operations.

IV. Having at the disposal of the tax authorities the accounting of the foreign legal entities or figures referred to in this paragraph and present within the relevant period of the information declaration referred to in Article 178 of this Law.

Not to be considered as income subject to preferential tax regime, those that are generated on the occasion of an average participation per day in foreign legal entities or figures that does not allow the taxpayer have the effective control of them or the control of their administration, to a degree such that they can decide the moment of distribution or distribution of the income, profits or dividends of them, either directly or by person. For these purposes, it is presumed, unless proof to the contrary, that the taxpayer has control of the foreign legal entities or figures that generate the income subject to preferential tax regimes.

For the determination of effective control, the average daily interest of the taxpayer and its related parties shall be considered in the terms of Article 179 of this Law or related persons, are resident in Mexico or abroad. For the purposes of this paragraph, there shall be an agreement between persons, if one of them holds management or liability positions in one company of the other, if they are legally recognised as being associated in business or in the case of the other. spouse or the person with whom they live in concubinage or are family consanguineos in ascending or descending straight line, collateral or affinity, up to the fourth grade.

Tax authorities may authorize taxpayers in this Chapter not to apply the provisions of this Chapter to the taxable income generated by foreign legal entities or figures that are authorized to act as financing entities by the authorities of the country in which they reside, when such revenue is used to meet the requirements to be established for the granting of credits contracted with persons, figures or entities that are not considered as parties related in the terms of Article 179 of this Law and no authorized deduction is generated for a resident in Mexico.

The authorisation referred to in the preceding paragraph shall be subject to the conditions laid down in the general rules which the tax authorities may issue.

When shares are held within the same group, resulting from an international restructuring, including the merger and division, which generate income within this Chapter, the taxpayers may not apply the provisions of the same to such income, provided that they are met with the following requirements and documentation:

1. Submit a notice to the tax authorities prior to the completion of such restructuring, including the group's organisation chart, with the ownership and a detailed description of all the steps that will be taken in it.

2. That the Restructure realization is supported for valid business and economic reasons and reasons, without the main motivation of the restructure is to obtain a tax benefit, to the detriment of the Federal Tax Office. The taxpayer must explain in detail the reasons and reasons why the restructuring was carried out in the notice referred to in the previous number.

3. That they present to the tax authorities within 30 days of the end of the restructure, the documents with which they credit the performance of the acts within the aforementioned restructure.

4. That the shares that are part of the restructuring do not fall to a person, entity or legal entity that does not belong to that group, within the two years after the date the restructure was completed.

For the purposes of this Chapter, group shall mean the group of companies whose shares with the right to vote representative of the share capital are directly or indirectly owned by the same moral person. at least 51%.

Article 177. For the purposes of this Chapter, the income referred to in Article 176 of this Act shall be taxable for the taxpayer in the financial year in which it is generated, in accordance with the the provisions of Titles II or IV of this same Law, as appropriate, in the proportion of their average direct or indirect participation per day in that financial year in the foreign legal entity or entity that receives them, even if they do not distribute to the taxpayer.

The taxable income referred to in this Article shall be determined each calendar year and shall not be cumulated with the other income of the taxpayer, including for the purposes of Articles 14, 106, 144 and 145 of this Act, as appropriate. The tax resulting from such income shall be entered in conjunction with the annual declaration.

When revenues are generated through a foreign entity or through a foreign legal figure that is considered a tax resident in any country and is taxed as an entity in the tax on the income in that country, the tax utility of the exercise of that entity or foreign legal figure derived from that income shall be determined in the terms of Title II of this Law, considering as an exercise the one in the country in which it is constituted or resides. For these purposes, the tax utility of the financial year shall be determined in the foreign currency in which the entity or the foreign legal figure is to be kept and converted into national currency at the exchange rate of the closing day of the financial year. exercise.

The tax utility of the financial year resulting from the provisions of the preceding paragraph shall be taxable for the taxpayer in the calendar year in which the financial year of the institution or legal figure ends. In this case, the proportion of foreign direct or indirect participation per day in which the utility was used in this exercise was generated. In the event of a loss of tax, only subsequent fiscal years with the same entity or legal status as the genus may be reduced in the terms of Article 57 of this Law.

The income generated through foreign legal figures that do not tax in any country as entities resident in it, will be determined by each type of income separately, in the Title II or Title IV of this Law, as applicable to the taxpayer, and are taxable for the same in the calendar year in which they are generated, in the proportion corresponding to the average direct or indirect participation per day that it has had in that entity in that year, making its conversion to national currency at the rate of change on the last day of that year.

Taxpayers must have at the disposal of the tax authorities the accounting of the foreign legal entities or figures referred to in Article 176 of this Law and submit within the deadline the information declaration referred to in Article 178 of that declaration. In the event of non-compliance, the entire income of the foreign legal entity or figure, without any deduction, shall be considered taxable in the proportion corresponding to them for direct or indirect participation in it.

The tax will be determined by applying the rate provided for in Article 9 of this Act, to taxable income, tax utility or tax result referred to in this article, as the case may be.

The taxpayer shall have to bear an account for each of the foreign legal entities or figures in which it participates in generating the income referred to in Article 176 of this Law. This account shall be added to the taxable income, tax utility or tax result of each financial year of the entity or foreign legal figure that corresponds to the taxpayer for its participation in it that has already paid the tax to This article, subtracting from the amount of such tax, will be reduced with the income, dividends or profits that the entity or foreign legal figure distributes to the taxpayer. When the balance of this account is less than the amount of income, dividends or profits distributed to the taxpayer, the tax for the difference shall be paid by applying the rate provided for in Article 9 of this Law.

The balance of the account provided for in the preceding paragraph, which is held on the last day of each financial year, excluding taxable income, tax utility or the tax result of the financial year, shall be updated for the period from the month in which the last update was made and until the last month of the financial year in question. Where the taxpayer receives income, profits or dividends after the update provided for in this paragraph, the balance of the account held at the date of the distribution shall be updated for the period from the month in which the that the last update was made and until the month in which revenues, dividends or profits are distributed.

The income, dividends or profits collected by the moral persons resident in Mexico, decreased with the income tax paid by them in the terms of this article, will be added to the net tax utility referred to in Article 77 of this Act of such persons.

When the taxpayer enacts shares of the entity or foreign legal figure or its participation in it, the gain shall be determined in the terms of the third paragraph of Article 22 of this Law. The taxpayer may choose to apply the provisions of Article 22 of the same Law, as if it were actions issued by moral persons resident in Mexico.

Dealing with income arising from the liquidation or reduction of the capital of foreign entities referred to in this article, the taxpayer shall determine the taxable income in the terms of the Article 78 of this Law. For these purposes, the taxpayer will carry a capital account that will be added to the capital injections and the net premiums for subscription of shares made by each shareholder and will be reduced with the capital reductions. which are made to each shareholder.

The balance of the account provided for in the preceding paragraph of the closing day for each financial year shall be updated for the period from the month in which the last update was made until the end of the month. the closure of the financial year in question. Where contributions or capital reductions are made after the update provided for in this paragraph, the balance of the account held at that date shall be updated for the period from the month in which the last account was taken. update and up to the month in which the contribution or reimbursement is paid, as appropriate.

The updated share capital shall be determined by dividing the balance of the capital account of each shareholder, as referred to in this Article, between the total of the shares held by the shareholder. each of them from the moral person, to the date of reimbursement, including those corresponding to the reinvestment or capitalization of profits or any other concept that integrates the accounting capital of the same.

The taxpayers referred to in this Chapter may credit the tax paid abroad by foreign legal entities or entities in which they participate, in the same proportion as the income of such entities or figures is taxable for them, against income tax that they cause in Mexico, for such income, provided that they can check the payment abroad of the tax they credit.

Taxpayers will be able to carry out the income tax credit that has been withheld and learned in the terms of Title V of this Law, for the income received by the entities or figures. foreign legal entities in which they participate, in the same proportion in which such income is taxable for them, against the income tax they cause in Mexico, for that income in the terms of this Chapter, provided that the income taxable include income tax withheld and learned in Mexico.

The amount of the accreditable tax referred to in the preceding paragraph shall not exceed the amount resulting from the application of the fee provided for in the first paragraph of Article 9 of this Law, to the taxable income in the terms of Title V of the same. Where the tax is within the limit referred to in this paragraph and cannot be fully or partially credited, the credit may be made in the following 10 financial years until it is exhausted. In no case shall the taxpayer be entitled to the refund of the tax which he has not been able to prove.

The taxpayer's accounting for the income referred to in this Chapter shall meet the requirements set forth in Article 76 (XVII) (a) of this Law and shall be at the same time as the the provision of tax authorities. For the purposes of this Chapter, the taxpayer is deemed to have at the disposal of the tax authorities the accounting of the foreign legal entities or figures referred to in the first paragraph of Article 176 of this Law, when it must be provided to that authority when exercising its powers of verification.

For the purposes of this Title and the determination of the income of source of wealth in the country, the tax authorities may, as a result of the exercise of the powers of verification they grant to them laws, to determine the simulation of legal acts exclusively for tax purposes, which shall be duly founded and motivated within the verification procedure and declared to exist in the act of determination itself of the tax situation referred to in Article 50 of the Tax Code of the Federation, provided that it is operations between related parties in terms of Article 179 of this Law.

In the legal acts in which there is simulation, the taxable event shall be effectively carried out by the parties.

The resolution in which the simulation determines the simulation must include the following:

a) Identify the simulated act and the actually celebrated.

b) Quantifying the tax benefit obtained by virtue of the simulation.

c) Point out the elements by which the existence of that simulation was determined, including the intent of the parties to simulate the event.

For the purpose of testing simulation, the authority may rely, among others, on presumptional elements.

In cases that are determined to be simulated in the terms of the preceding four paragraphs, the taxpayer shall not be required to file the declaration referred to in Article 178 of this Act.

Article 178. The taxpayers of this Title, in addition to the obligations laid down in other articles of this Law, shall submit in the month of February each year, to the authorized offices, information statement on the revenue generated or generated in the previous financial year subject to preferential tax arrangements, or in companies or entities whose income is subject to such schemes, corresponding to the financial year previous immediate, accompanying the statements of account by deposits, investments, savings or any other, or, where appropriate, the documentation which, by means of general rules, establishes the Tax Administration Service. For the purposes of this article, income subject to preferred tax regimes, both deposits and withdrawals, are considered. The declaration referred to in this Article shall be used only for tax purposes.

Notwithstanding the provisions of this Chapter, taxpayers who generate income of any kind from any of the territories mentioned in the transitional provisions of this Law, as well as those who carry out transactions by means of foreign legal entities or entities which are transparent and fiscally transparent as referred to in Article 176 thereof, shall submit the information declaration provided for in the preceding paragraph, without (i) it is considered that income subject to schemes is being generated (b) preferential tax, unless they are in any of the cases provided for in Article 176 of this Law, or where they do not comply with the presentation of the information declaration referred to in this paragraph.

The holder and the revenue co-holders provided for in the first paragraph of this Article shall be those who shall submit the statement above and the financial institutions shall only be relieved of submit the same, provided that they retain a copy of the declaration submitted in time and form by the holder and co-holders of the revenue subject to a preferential tax regime.

The taxpayer is deemed to have omitted the submission of the statement referred to in this Article, where it does not contain the information relating to the entire income that the taxpayer has generated or generated subject to preferential tax regimes corresponding to the previous immediate financial year.

CHAPTER II

OF MULTINATIONAL COMPANIES

Article 179. Title II taxpayers of this Act, who conduct transactions with related parties residing abroad are required, for the purposes of this Act, to determine their cumulative income and authorized deductions, considering for those operations the prices and amounts of consideration that they would have used with or between independent parties in comparable transactions.

In the contrary case, the tax authorities will be able to determine the cumulative income and authorized deductions of the taxpayers, by determining the price or amount of the consideration in transactions concluded between related parties, considering for those transactions the prices and amounts of consideration that would have been used by independent parties in comparable transactions, whether they are with moral persons, residents in the country or abroad, natural persons and establishments permanent in the country of foreign residents, as well as in the case of activities carried out through trusts.

For the purposes of this Act, it is understood that transactions or companies are comparable, where there are no differences between them that significantly affect the price or amount of the consideration or the (a) the methods laid down in Article 180 of this Law are applicable, and where such differences exist, they shall be eliminated by reasonable accommodation. In order to determine these differences, the relevant elements that are required, according to the method used, shall be taken into account, inter alia, the following elements:

I. The features of operations, including:

a) In the case of financing operations, items such as the amount of principal, term, collateral, debtor's creditworthiness, and interest rate.

b) In the case of service delivery, items such as the nature of the service, and whether or not the service involves an experience or knowledge technical.

c) In the case of use, enjoyment, or alienation, of tangible goods, such as the physical characteristics, quality, and availability of the good.

d) In the event that the holding is granted or an intangible asset is transmitted, such items as if it is a patent, trademark, trade name or technology transfer, duration and degree of protection.

e) In the case of the disposal of shares, items such as the updated accounting capital of the broadcaster shall be considered as the present value of the earnings or projected cash flows or stock exchange rate of the last fact of the day of the disposal of the broadcaster.

II. The functions or activities, including the assets used and risks assumed in the operations, of each of the parties involved in the operation.

III. The contractual terms.

IV. Economic circumstances.

V. Business strategies, including those related to market penetration, permanence and expansion.

When business cycles or commercial acceptance of a taxpayer's product covers more than one financial year, corresponding comparable transactions may be considered for two or more years. later.

Two or more persons are considered to be related parties, when one participates directly or indirectly in the administration, control or capital of the other, or when a person or group of persons participate directly or indirectly in the administration, control or capital of such persons. In the case of joint ventures, they are considered to be related to their members, as well as to the persons who consider related parts of this paragraph.

Related parts of a permanent establishment, the parent or other permanent establishment thereof, as well as the persons referred to in the preceding paragraph and their establishments are considered permanent.

Except evidence to the contrary, it is presumed that transactions between residents in Mexico and companies or entities subject to preferential tax regimes are between related parties in which prices and amounts the consideration of the consideration is not agreed to those that would have used independent parts in comparable operations.

For the interpretation of the provisions of this Chapter, the Guidelines on Transfer Prices for Multinational Enterprises and Fiscal Administrations, approved by the Council of the European Union, will be applicable. Organization for Economic Cooperation and Development in 1995, or those that replace them, to the extent that they are consistent with the provisions of this Law and the treaties concluded by Mexico.

Article 180. For the purposes of Article 179 of this Act, taxpayers shall apply the following methods:

I. Uncontrolled comparable price method, which consists of considering the price or the amount of consideration that would have been agreed with or between independent parties in comparable transactions.

II. Resale price method, which consists of determining the purchase price of a good, the provision of a service or the consideration of any other transaction between related parties, by multiplying the resale price, or by the provision of the service or operation concerned by the result of the reduction of the unit, the gross utility per cent that would have been agreed with or between independent parties in comparable transactions. For the purposes of this fraction, the gross utility percent shall be calculated by dividing the gross utility between net sales.

III. Added cost method, which consists of determining the sale price of a good, the provision of a service or the consideration of any another operation, between related parties, multiplying the cost of the good, the service or the operation in question by the result of adding to the unit the percentage of gross utility that would have been agreed with or between independent parts in comparable operations. For the purposes of this fraction, the gross utility percent will be calculated by dividing the gross utility between the cost of sales.

IV. Utility partition method, which consists of assigning the operation utility obtained by related parties, in the proportion that would have been allocated with or between independent parts, as follows:

a) The global operation utility will be determined by the sum of the operation utility obtained by each of the related persons involved in the operation.

b) The global operation utility will be assigned to each of the related persons considering items such as assets, costs and expenses for each of the related persons, with respect to the transactions between those related parties.

V. Utility partition residual method, which consists of assigning the operation utility obtained by related parties, in the proportion that would have been assigned with or between independent parts according to the following:

a) The global operation utility will be determined by the sum of the operation utility obtained by each of the related persons involved in the operation.

b) The global operation utility will be assigned as follows:

1. The minimum utility that corresponds to each of the related parties will be determined by applying any of the methods to which it is refer to fractions I, II, III, IV and VI of this Article, without taking into account the use of significant intangibles.

2. The residual utility, which shall be obtained by decreasing the minimum utility referred to in paragraph 1 above, shall be determined from the operating utility global. This residual utility shall be distributed among the related parties involved in the transaction taking into account, inter alia, the significant intangibles used by each of them, in the proportion in which it was distributed with or between independent parties in comparable operations.

VI. Transaction utility transactional margin method, which consists of determining in transactions between related parties, the operation utility they have obtained comparable companies or independent parties in comparable transactions, based on profitability factors that take into account variables such as assets, sales, costs, expenses or cash flows.

From the application of any of the methods outlined in this article, you will be able to obtain a range of prices, amounts of consideration or profit margins, when there are two or more transactions comparable. These ranges will be adjusted by applying statistical methods. If the price, amount of consideration or profit margin of the taxpayer is within these ranges, such prices, amounts or margins shall be considered as agreed or used between independent parties. In case the taxpayer is outside the adjusted range, the price or amount of consideration that independent parties would have used is considered to be the median of that range.

Taxpayers must first apply the method provided for in section I of this Article, and may only use the methods set out in fractions II, III, IV, V and VI of this Article, where the The method provided for in part I cited is not the appropriate one to determine that the operations carried out are at market prices in accordance with the Transfer Pricing Guidelines for Multinational Enterprises and the Administrations Prosecutors referred to in the last paragraph of Article 179 of this Law.

For the purposes of the application of the methods provided for by fractions II, III and VI of this Article, the methodology shall be deemed to be met, provided that the cost and the selling price are shown are at market prices. For these purposes, they shall be construed as market prices, prices and amounts of consideration that they would have used with or between independent parties in comparable transactions or where the taxpayer has been granted a resolution. favourable in the terms of Article 34-A of the Tax Code of the Federation. It shall be demonstrated that the method used is the most appropriate or the most reliable according to the information available, with preference given to the methods provided for in fractions II and III of this Article.

For the purposes of this Article and Article 179 of this Act, revenue, costs, gross utility, net sales, expenses, operating income, assets and liabilities shall be determined on the basis of the financial information.

Article 181. A resident abroad shall not be deemed to have a permanent establishment in the country, derived from legal or economic relations that they maintain with companies that carry out maquila operations, which regularly process in the country, goods or goods held in the country by the resident abroad, using assets provided, directly or indirectly, by the resident abroad or any related company, provided that Mexico has concluded, with the country of residence of the resident abroad, a treaty to avoid double taxation and compliance with the requirements of the treaty, including the friendly agreements concluded in accordance with the treaty in the manner in which they have been implemented by the parties to the treaty, so that the resident abroad is deemed to have no permanent establishment in the country. The provisions of this Article shall only apply provided that undertakings carrying out maquila operations comply with the provisions of Article 182 of this Law.

For the purposes of this article, it is considered a maquila operation that meets the following conditions:

I. The goods supplied by the resident abroad on the occasion of a maquila contract under a Maquila Program authorized by the Secretariat of Economy, which undergo a process of transformation or repair, is temporarily imported and returned abroad, including through virtual operations, carried out in accordance with the Customs Law and the rules of general character which for that effect the Service of Tax Administration. For the provisions of this fraction the return abroad of mermas and waste is not required.

The goods referred to in this fraction may only be the property of a third party resident abroad when they have a commercial relationship of manufacture with the company resident abroad, which in turn has a maquila contract with which it performs the maquila operation in Mexico, provided that these goods are supplied for such commercial relations.

For the purposes of this fraction, the processes to be carried out with the goods consisting of: dilution in water or in water are considered as processing. other substances; washing or cleaning, including removal of oxide, grease, paint or other coatings; application of preservatives, including lubricants, protective encapsulation or preservation paint; adjustment, liming or cutting; conditioning in doses; packaging, repackaging, packed or repackaged; the submission to tests, and marking, labelling or classification, as well as the development of a product, except for trade marks, commercial notices and trade names.

II. That all of your income from your productive activity come exclusively from your maquila operation.

III. That when companies with a Program that perform the processing or repair processes referred to in the section I of this article, incorporate in their production processes domestic or foreign goods, which are not imported temporarily, they must be exported or returned in conjunction with the goods which they have temporarily imported.

IV. That the processing or repair processes referred to in the section I of this article are performed with machinery and equipment owned by the resident abroad with which the companies with the Program have concluded the maquila contract, provided that they have not been the property of the company that performs the operation of maquila or another company resident in Mexico of which it is a related party.

The processing and repair process may be supplemented by machinery and equipment owned by a third-party resident abroad who has a relationship The invention relates to a manufacturing commercial with the foreign-resident company, which in turn has a maquila contract with the company that performs the maquila operation in Mexico, provided that these goods are supplied for such a commercial relationship, or are the property of the undertaking performing the maquila operation or with machinery and equipment leased to an unrelated party. In no case shall the machinery or equipment mentioned above may have been owned by another company resident in Mexico, of which the undertaking performing the maquila operation is a related party.

The provisions of this fraction shall be applicable provided that the resident abroad with whom the maquila contract is held is the owner of the less than 30% of the machinery and equipment used in the maquila operation. The percentage referred to shall be calculated in accordance with the general rules which the Tax Administration Service may issue for that purpose.

No maquila operation shall be deemed to be the processing or repair of goods whose disposal is carried out on a national territory and is not covered with an export request for which the provisions of Article 182 of this Law shall not apply.

Article 182. For the purposes of Article 181 of this Act, companies carrying out maquila operations shall be deemed to comply with the provisions of Articles 179 and 180 of the Act and that persons resident abroad for whom they act do not have permanent establishment in the country, when the maquiladora companies determine their tax utility as the largest amount resulting from applying the following:

I. The 6.9% on the total value of assets used in the maquila operation during the fiscal year, including those owned by the a person residing in the country, of residents abroad or of any of its related parties, even if they have been granted in use or temporary enjoyment of that maquiladora.

It is understood that the assets are used in the maquila operation when they are in national territory and are used in whole or in part that operation.

The assets referred to in this fraction may be considered only in the proportion in which they are used provided they obtain authorization from the tax authorities.

(a) The person residing in the country may exclude from the calculation the value of the assets that have leased them related parts of this fraction resident on a national territory or non-related parties resident abroad, provided that the assets leased have not been owned or by their related parties resident abroad, except where the disposal of the property is has been agreed in accordance with Articles 179 and 180 of this Law.

The value of the assets used in the maquila operation, owned by the person resident in the country, shall be calculated in accordance with the procedure set the Tax Administration Service by general rules.

The value of fixed assets and inventories owned by foreign residents, used in the transaction in question, shall be calculated in accordance with the next:

1. The value of inventories of raw materials, semi-finished and finished products, by the sum of the monthly averages of such inventories, for all months of the financial year and dividing the total between the number of months in the financial year. The monthly average of the inventories will be determined by the sum of these inventories at the beginning and end of the month and by dividing the result between two. Inventories at the beginning and end of the month shall be valued in accordance with the method that the person resident in the country has in place based on the value that for such inventories has been entered in the accounts of the owner of the inventories at the time of being imported into Mexico. Such inventories shall be valued in accordance with generally accepted accounting principles in the United States of America or generally internationally accepted accounting principles when the owner of the assets resides in a country other than the United States of America. For the case of the values of the semi-finished or finished products processed by the person resident in the country, the value shall be calculated by considering only the value of the raw material.

When the monthly averages referred to in the previous paragraph are denominated in dollars from the United States of America, the resident person in the country must convert them to national currency, applying the exchange rate published in the Official Journal of the Federation in force on the last day of the month corresponding. In the event that the Bank of Mexico has not published such exchange rate, the last exchange rate published in the Official Journal of the Federation shall be applied before the date of the month's closing. Where the said quantities are denominated in a foreign currency other than the dollar of the United States of America, the exchange rate referred to in the United States of America's dollar equivalent shall be multiplied. the currency concerned, according to the table published by the Bank of Mexico in the immediate month following the one to which the import corresponds.

2. The value of fixed assets will be the amount to be deducted, calculated in accordance with the following:

i) The purchase amount of such assets by the resident abroad shall be considered as the original amount of the investment.

ii) The amount outstanding to be deducted will be calculated by decreasing the original amount of the investment, as determined in accordance with the preceding subparagraph, the the amount resulting from the application to the latter amount by the maximum of the authorised maximum of hundreds of the maximum permitted under Articles 34, 35, 36, 37 and the other applicable of this Law, as appropriate for the good in question, without any application of the Article 51 of the Law on Income Tax in force until 1998 or in the Article 220 of the Law cited in force until 31 December 2013. For the purposes of this sub-paragraph, the deduction shall be considered for full months, from the date on which they were acquired until the last month of the first half of the financial year for which the tax utility is determined. Where the property in question has been acquired during that financial year, the deduction shall be considered for a full month, from the date of acquisition of the good until the last month of the first half of the period in which the goods have been allocated to the operation in question in that year.

In the case of the first and last financial year in which the good is used, the average value of the good shall be determined by dividing the above result between 12 and the quotient shall be multiplied by the number of months in which the good has been used in those exercises.

The amount to be deducted calculated in accordance with this item of goods denominated in dollars of the United States of America will be converted into national currency using the exchange rate published in the Official Journal of the Federation in force on the last day of the last month corresponding to the first half of the year in which the goods were used. In the event that the Bank of Mexico has not published such exchange rate, the last published exchange rate shall apply. The conversion to dollars of the United States of America referred to in this paragraph, of securities denominated in other foreign currencies, shall be made using the dollar equivalent of the United States of America of this last currency of agreement with the table that the Bank of Mexico publishes monthly during the first week of the immediate month following the one to which it corresponds.

iii) In no case shall the amount outstanding to be deducted be less than 10% of the amount of acquisition of the goods.

3. The person residing in the country may choose to include deferred charges and charges on the value of the assets used in the maquila operation.

Persons residing in the country must have at the disposal of the tax authorities the appropriate documentation in which, if necessary, they contain the provided for in numerals 1 and 2 of section I of this article. The obligation to make available to the tax authorities the documentation referred to above shall be deemed to be fulfilled where such authorities are provided, where appropriate, within the time limits laid down in the tax provisions.

II. 6.5% on the total amount of the operating costs and expenses of the operation in question, incurred by the person resident in the country, determined in accordance with financial reporting standards, including those incurred by residents abroad, except for the following:

1. The value corresponding to the purchase of goods, as well as of raw materials, semi-finished or finished products, used in the maquila operation, which are carried out by own account residents abroad.

2. The deduction of investments from fixed assets, expenses, and deferred charges owned by the maquiladora company, intended for the maquila operation, is calculated by applying the provisions of this Law.

3. The effects of inflation determined in the financial reporting rules should not be considered.

4. Financial expenses should not be considered.

5. Extraordinary or non-recurring expenses of the transaction shall not be considered in accordance with the financial reporting rules. It is not considered to be extraordinary expenses for which reserves and provisions have been created in the terms of the financial information rules and for which the maquiladora company has expressly provided liquid funds. intended to make your payment. Where the taxpayer has not created the reserves and provisions cited and for which the maquiladora company has liquid funds expressly to make its payment, they shall not consider as extraordinary expenses the payments that carry out the concepts in respect of which the above reserves or provisions were to be constituted.

The concepts referred to in this numeral should be considered in their historical value without inflation updating, with the exception of the provisions of the numeral 2 of this fraction.

For the purposes of this fraction only expenses incurred abroad by foreign residents for services directly to be considered related to the operation of the maquila by relocations made on behalf of the person resident in the country to cover own obligations contracted in national territory, or expenses incurred by residents abroad for subordinate personal services to be provided in the maquila operation, where the stay the service provider on national territory is more than 183 calendar days, consecutive or not, in the last twelve months, in accordance with Article 154 of this Law.

For the purposes of the calculation referred to in the preceding paragraph, the amount of expenses incurred by foreign residents for subordinate personal services relating to the operation of maquila, which are provided or used on national territory, shall comprise the total of the salary paid in the tax year concerned, including any of the benefits referred to in the rules of character General that the Tax Administration Service, granted to the person, is issued physical.

Where the physical person of the subordinate personal service is resident abroad, instead of applying the provisions of the preceding paragraph, it may be considered in proportional form of the expenditure referred to in that subparagraph. In order to obtain this ratio, the total amount of the salary received by the natural person in the fiscal year concerned shall be multiplied by the ratio resulting from dividing the number of days spent on national territory. person between 365. It shall be considered as a number of days that the natural person remains on national territory, those in which he has a physical presence in the country, as well as on Saturdays and Sundays for every 5 working days of stay on national territory, holidays when the natural person concerned has stayed in the country for more than 183 days in a 12-month period, short-term work interruptions, as well as sick leave.

Persons residing in the country who choose to apply the provisions of this fraction shall submit to the tax authorities a written statement that the utility For the financial year, I represent at least the largest amount resulting from the application of the provisions of Sections I and II of this Article, at the latest within three months of the end of that financial year.

Companies with a maquila program that apply the provisions of this Article shall submit annually to the tax authorities, no later than the month of June of the year in question, an information statement of their operations. of maquila in terms of what the Tax Administration Service establishes by general rules.

The person residing in the country may obtain a particular resolution under the terms of Article 34-A of the Tax Code of the Federation in which it is confirmed that Articles 179 and 180 of this Law are complied with. Such a particular resolution will not be necessary to satisfy the requirements of this article.

Persons residing in the country who have chosen to apply the provisions of this Article shall be exempt from the obligation to present the information declaration indicated in section X of Article 76 of this Law, only by the maquila operation.

Persons residing in the country who perform, in addition to the maquila operation referred to in Article 181 of this Law, activities other than this, may avail themselves of the provisions of this article only by the maquila operation.

Article 183. It shall not be deemed to have permanent establishment in the country of foreign residents who directly or indirectly provide raw materials, machinery or equipment to carry out maquila activities through companies with the maquila programme under the form of shelter approved by the Secretariat of the Economy, provided that such residents abroad are not related parts of the company with a maquila program under the shelter in question, or from a related party of that company.

The provisions of this Article shall apply provided that undertakings with a maquila programme under the form of shelter, submit annually to the tax authorities, no later than the month of June of the year in question, information statement of the operations carried out through the maquiladora company in the mode of shelter or its related parts. The information referred to in this paragraph must be broken down by each of the foreign residents who carry out maquila activities through the company with a maquila program under the hostel mode.

To companies with a maquila program under the hostel mode that apply the provisions of this article, in no case will you apply the provisions of Articles 181 and 182 of this Law.

Companies with a maquila program in the form of shelter must comply, in addition to the obligations set out in this article and in the tax and customs provisions, with the following:

I.           Observe the provisions of the fifth paragraph of Article 32-D of the Fiscal Code of the Federation, only in respect of fractions I, II and III of that legal precept.

II. Submit the following statements in the terms and conditions set out in the tax provisions:

a) Annual and monthly final federal taxes to which they are required, regardless of whether or not the amount is payable.

b) Information about operations with third parties.

c) Module corresponding to its foreign trade operations of the Information Statement of Manufacturing, Maquiladora and Services Companies Export.

When a company with a maquila program in the form of shelter does not comply with any of the obligations under the above, the Tax Administration Service will require that the company so that, within a period not exceeding 30 calendar days, it shall clarify what is appropriate to its right to the non-compliance and in the event that the same is not remedied within the said period, the suspension of that undertaking shall be carried out in the Register of Importers as referred to in Article 59, fraction IV of the Customs Act.

Overseas residents who carry out maquila activities through the maquila company under the hostel mode, will only be able to apply the provisions of this article for a period of 4 years. consecutive.

Article 184. When, in accordance with an international tax treaty concluded by Mexico, the competent authorities of the country with which the treaty was concluded, make an adjustment to the prices or amounts of In the case of a resident taxpayer in that country and provided that the adjustment is accepted by the Mexican tax authorities, the related party resident in Mexico may submit a supplementary declaration reflecting the corresponding adjustment. This supplementary declaration shall not be taken into account within the limit laid down in Article 32 of the Tax Code of the Federation.

TITLE VII

OF FISCAL STIMULUS

CHAPTER I

OF PERSONAL SAVINGS ACCOUNTS

Article 185. The taxpayers referred to in Title IV of this Law, who make deposits in the special personal savings accounts, make insurance contract premium payments that are based on pension plans related to the age, retirement or retirement that the Tax Administration Service may authorize by means of general provisions, or acquire shares in investment companies that are identifiable in terms of which the referred to as general provisions, they may be subtract the amount of such deposits, payments or acquisitions, from the amount to which the rate of Article 152 of this Law would apply to you not having carried out the transactions mentioned, corresponding to the financial year in which they were made or to the prior immediate exercise, when carried out before the respective declaration is made, in accordance with the rules set out below:

I. The amount of deposits, payments or acquisitions referred to in this Article may not exceed the calendar year in question. equivalent to $152,000.00, considering all concepts.

The shares of the investment companies referred to in this Article shall remain in the custody of the investment company to which they correspond, not being able to be (a) to third parties, reimbursed or repurchased by that company, before a period of five years has elapsed from the date of its acquisition, except in the case of the death of the holder of the shares.

II. The amounts that are deposited in the personal accounts, are paid for insurance contracts, or are invested in shares of the companies of investment, as referred to in this Article, as well as interest, reserves, sums or any amount obtained by way of dividends, divestiture of the shares of the investment companies, indemnities or loans deriving from these the accounts, the respective contracts or the shares of the investment companies, they must be regarded as a cumulative income of the taxpayer in their declaration for the calendar year in which they are received or withdrawn from their special personal account for the saving, the insurance contract in question or the the investment company from which the shares have been acquired. In no case shall the rate applicable to the cumulative amounts in the terms of this fraction be greater than the tax rate which the taxpayer would have paid in the year in which the deposits were made, the payments of the premium or the acquisition of the actions, if not received.

In the event of the death of the holder of the special account for the savings, the insured or the acquirer of the shares, as referred to in this Article, the designated beneficiary or heir shall be obliged to accrue to your income, withdrawals from the account, contract or investment company, as the case may be.

Persons who have entered into marriage under a conjugal society may consider the special account or the investment in shares referred to in this article, such as from both spouses in the (a) a proportion of their share, or of one of them, in which case the deposits, investments and withdrawals shall be considered in their entirety. This option must be exercised for each account or investment at the time of its opening or completion and cannot be varied.

Taxpayers who make insurance contract premium payments that are based on age, retirement or retirement pension plans and also secure the life of the contractor, will not be able to make the deduction referred to in the first paragraph of this Article by the part of the premium corresponding to the life component. The insurance institution shall, in the insurance contract, break down the part of the premium covering life insurance. The amount paid by the insurance institution to the designated beneficiaries or to the heirs as a result of the death of the insured person shall be given the treatment provided for in Article 93 (XXI), first paragraph of this Law, part of life insurance. Insurance institutions which make payments to cover the premium corresponding to the life component under the funds made up to cover the pension, retirement or retirement of the insured person shall retain as a provisional payment the tax which results in the terms of Article 145 of this Law.

CHAPTER II

OF EMPLOYERS HIRING PEOPLE WITH DISABILITIES AND OLDER ADULTS

Article 186. The pattern that contracts people with motor disabilities and who, in order to overcome it, requires permanent use of prostheses, crutches or wheelchairs; mental; hearing or language, in eighty percent or more of the normal capacity or in the case of blind persons, may deduct from their income an amount equal to 100% of the income tax of these workers retained and learned under Chapter I of Title IV of this Law, provided that the employer is in compliance in respect of such workers with the obligation contained in Article 12 of the Insurance Act Social and also obtain from the Mexican Social Security Institute the worker's disability certificate.

A fiscal stimulus will be granted to those who hire older adults, consisting of the equivalent of 25% of the salary effectively paid to people 65 and older. For these purposes, the whole of the salary which serves as the basis for calculating, in the corresponding year, the deductions of the income tax of the worker concerned, must be considered in the terms of Article 96 of the Law.

CHAPTER III

OF TRUSTS DEDICATED TO THE ACQUISITION OR CONSTRUCTION OF BUILDINGS

Article 187. For the purpose of encouraging real estate investment in the country, the tax treatment provided for in Article 188 of this Law will be given to trusts that are dedicated to the acquisition or construction of real estate that is intended for lease or acquisition of the right to receive income from the lease of such assets, as well as to grant financing for those purposes, when the following requirements are met:

I.           That the trust has been constituted or is constituted in accordance with Mexican law and the trust is a credit institution resident in Mexico authorized to act as such in the country.

II.          That the primary purpose of the trust be the acquisition or construction of immovable property that is intended for the lease or acquisition of the right to receive income from the lease of such assets, as well as to grant financing for those purposes with mortgage collateral for the leased goods.

III.         That at least 70% of the trust's assets are invested in the real estate, the rights or credits to which the previous fraction refers and the remainder is invested in securities by the Federal Government registered in the National registry of securities or shares of investment companies in debt instruments.

IV.         That the immovable property to be built or acquired is intended for the lease and does not become available before at least four years after the completion of its construction or acquisition, respectively. The real estate that is sold before the deadline will not have the preferential tax treatment set out in Article 188 of this Law.

V.          That the trustee issue certificates of participation for the assets that integrate the trust's assets and that such certificates are placed in the country between the large investor public or acquired by a group of (a) investors consisting of at least 10 persons, who are not related parties to each other, in which none of them is the owner of more than 20% of all the certificates of participation issued.

VI.         That the trustee distribute among the holders of the certificates of participation at least once a year, no later than 15 March, at least 95% of the tax result of the previous immediate year generated by the goods members of the trust's estate.

VII. That when the fiduciary is stowed in the lease agreements or contracts that to determine the amount of the consideration are included amounts variables or percentages, except in cases where the consideration is determined according to a fixed percentage of the lessee's sales, these concepts may not exceed 5% of the total amount of annual revenue per Trust income concept.

VIII. You are registered in the Register of Trusts dedicated to the acquisition or construction of real estate, in accordance with the rules issue the Tax Administration Service.

Article 188. Trusts that meet the requirements set out in Article 187 of this Act will be as follows:

I.           The fiduciary shall determine in the terms of Title II of this Law, the tax result of the financial year derived from the income generated by the assets, rights, credits or securities that integrate the trust's assets.

II.          The fiscal result of the exercise shall be divided between the number of certificates of participation issued by the trust by the trust to determine the amount of the tax result corresponding to each of the aforementioned certificates on the individual.

III.         There shall be no obligation to make the provisional income tax payments referred to in Article 14 of this Law.

IV.         The trustee must retain the holders of the certificates of participation in the income tax for the tax result that they distribute to them by applying the rate of Article 9 of this Law, on the amount distributed of the income tax. result, unless the holders who receive them are exempt from the income tax payment for that income.

When the certificates of participation are placed among the large investor public, it will be the financial intermediary that holds the said certificates certificates who shall make the withholding tax referred to in the preceding paragraph and the fiduciary shall be relieved of the obligation to hold such a withholding tax.

V.          The holders of the certificates of participation that are resident in Mexico or residents abroad who have permanent establishment in the country will accumulate the tax result that the trustee or the intermediary distributes to them financial assets arising from the assets, rights, claims or securities that integrate the assets of the trust issuer of such certificates, without deducting the tax held by them, and the profits they obtain from the disposal of the said certificates certificates, unless they are exempt from the payment of the tax for such profits, and may credit the tax that is retained for such income and profit, against the income tax that they cause in the financial year in which they are distributed or obtain them.

Natural persons resident in Mexico shall consider that the distributed tax result corresponds to the income referred to in section II of the article 114 of this Act.

The retention to be made to holders of participation certificates that are resident abroad will be considered as the final payment of the tax.

VI.         The pension and retirement funds referred to in Article 153 of this Law that acquire the certificates of participation may apply the exemption granted in that article to the income received from the property, rights, claims and securities which integrate the assets of the trust issuer of the certificates referred to and the capital gain they obtain from the disposal of the certificates.

VII.        When any of the fixed immovable property is in place before the minimum period referred to in Article 187 (IV) of this Law has elapsed, the trustee must pay, within 15 days of the date of the disposal, the tax for the profit obtained in such disposal, which results from applying the rate of Article 9 of this Law to the amount of that profit determined in the terms of Chapter IV of Title IV of this Law, for the account of the holders of the certificates of participation, without identifying them, and this tax shall be accreditable for the holders to whom the trust will distribute the profit to them, provided that it is cumulative for them, without having to retain the tax for the distribution of that profit.

VIII.       When the fiscal result of the financial year derived from the revenue generated by the fideicomitides is greater than the amount distributed to the holders of the certificates of participation until March 15 of the immediate year later, the trustee will have to pay the tax for the difference, applying the rate of Article 9 of this Law, to that difference, on behalf of the holders of the related certificates, without identifying them, within the fifteen days following that date, and the tax paid shall be credited to the holders of such certificates as they receive subsequently the income from the said difference, provided that it is cumulative for them, without having to retain the tax for the distribution of such difference.

IX.         The holders of the certificates of participation will cause income tax for the gain they obtain in the disposal of said certificates, which will result from subtracting the income they receive in the disposal, the average cost by certificate of each of the certificates that are issued.

The average cost per certificate of participation will be determined by including in its calculation all the certificates of the same issuer trust that has the enajenante to the date of the disposal, even if it does not aliene all of them.

The calculation of the average cost per certificate of participation will be made by dividing the proven cost of acquiring the totality of the related certificates of the same issuer trust which has the date of disposal, updated from the month of its acquisition up to the month of disposal, among the total number of such certificates owned by the enajenante.

Where the enajenant does not complete all the certificates of participation of the same issuer trust that has the date of the disposal, the Certificates that have not been completed will have as proven cost of acquisition in the calculation of the average cost per certificate to be done in subsequent enajenations in the terms of this fraction, the average cost per certificate of participation determined in accordance with the calculation carried out in the previous immediate disposal and as the acquisition date of the last disposal.

The acquirer of the certificates of participation shall retain 10% of the gross income of the receive, without deduction, for income tax, except that the enajenante is a moral person resident in Mexico or is exempt from the payment of the tax for the income received from the goods, rights, credits or securities that integrate the assets of the escrow certificates.

When the trustee gives the holders of the participation certificates a greater amount than the fiscal result of the financial year generated by the fideicomitid goods, the difference will be considered as capital reimbursement and will decrease the proven cost of acquisition of said certificates that have the holders that receive it, updating the amount of such difference from the month in which it is delivered until the month in which the The holder partially or fully enengages the certificates that you have in the immediate post-delivery disposal that you perform.

For the purposes of the preceding paragraph, the fiduciary shall carry an account in which he/she registers the capital and shall give the holders of the certificates of participation a constancy for the reimbursements they receive, except in the case of certificates of participation placed between the large public investor.

X.          When the certificates of participation are placed between the large investor public and are posted through the recognized markets referred to in Sections I and II of Article 16-C of the Fiscal Code of the Federation, be exempt from the payment of income tax on foreign residents who do not have permanent establishment in the country and the natural persons resident in Mexico for the gain they obtain in the disposal of such certificates as carry out through those markets.

XI.         People who act as a trustee to provide immovable property to the trust and receive certificates of participation for the full or partial value of such assets may defer payment of the income tax due to the trust. profit obtained in the disposal of those goods made in the contribution they make to the trust, corresponding to each of the certificates of participation that they receive for the same until the moment in which each one of the said certificates certificates, updating the amount of the tax caused for each certificate enajene for the period from the month of the contribution of the real estate to the trust until the month in which the certificates are issued.

For the purposes of the preceding paragraph, the tax shall be calculated by applying the rate of Article 9 of this Law the amount of the gain obtained in the disposal of the real estate and shall be paid within 15 days following the disposal of the corresponding certificates of participation.

The gain obtained by the disposal of the real estate made in the contribution of the The trust corresponding to each of the certificates of participation received by those goods shall be determined in the terms of this Law, considering as the price of the disposal of such goods the value that has been given to them in the minutes of issue of the certificates and the resulting gain, between the number of participation certificates that is obtained from dividing that value between the nominal value that has the certificate of participation in the individual.

The deferral of the payment of the tax to which this fraction refers will end when the trustee enajene the immovable property and the person who has contributed the immovable property must pay the immovable property within 15 days of the disposal of the property.

For the taxpayers of Title II of this Law will be cumulable the profit in the exercise in which they do the certificates or the trust enajene the fideicomítítís, updating its amount for the period from the month in which the goods were contributed to the trust until the month in which the certificates or the real estate have been carried out, and the tax paid in accordance with the provisions of this fraction shall be considered as payment Provisional duty for that financial year.

The persons who receive certificates of participation for their contribution to the property trust, will have as proven cost of acquisition of each one of those certificates the amount that results from dividing the value that have been given to those real estate in the act of issue of the referred certificates between the number of certificates to be obtained from dividing that value from the nominal value of the certificate of participation in the individual and as the date of acquisition the date on which they receive them for the aforementioned contribution. The gain derived from the disposal of the certificates referred to in this paragraph shall be determined in the terms of the section VII of this same article.

XII.        When the trustees provide real estate to the trust that is immediately leased to such items by the trustee, they may defer payment of the income tax due to the gain obtained in the the disposal of the goods until the end of the lease, provided that it does not have a period of more than ten years, or the moment when the trustee is in charge of the real estate provided, whichever is the case first. Upon termination of the lease or the sale of the real estate by the trustee, the tax shall be paid for the profit resulting from applying the rate of Article 9 of this Law to the updated amount of such gain for the period after the month in which the assets were provided to the trust until the month in which the lease is terminated or the assets are completed by the trustee.

CHAPTER IV

FROM FISCAL STIMULUS TO NATIONAL FILM AND THEATRICAL PRODUCTION AND DISTRIBUTION

Article 189. A tax stimulus is granted to income tax payers, consisting of applying a tax credit equal to the amount that, in the tax year of in the case of investments in national film production or in the distribution of national film films, against the income tax which they hold in respect of the financial year in which the credit. This tax credit will not be cumulative for income tax purposes. In no case, the stimulus may exceed 10% of the income tax in the immediate financial year preceding that of its application.

When that credit is higher than the income tax that you hold in the tax year in which the stimulus is applied, taxpayers will be able to credit the difference that it is against the income tax that they hold in the next ten years until they are exhausted.

For the purposes of this article, they will be considered as investment projects in national film production, investments in national territory, specifically aimed at making of a film film through a process in which the creation and realization of film are conjugated, as well as the human, material and financial resources necessary for such an object.

In addition, investment projects will be considered in the distribution of national film films, the proposal of actions, activities and strategies to distribute National film films with artistic merits, both in commercial and non-commercial circuits, as well as those that stimulate the formation of audiences and encourage the circulation of national film production.

For the application of the fiscal stimulus referred to in this Article, the following shall be:

I. An Inter-Institutional Committee to be created by a representative of the National Council for Culture and the Arts, one of the Mexican Institute of Cinematography and one of the Secretariat of Finance and Public Credit, who will chair the Inter-Institutional Committee and will have a vote of quality.

II. The total amount of the stimulus to be distributed among the aspirants of the benefit, shall not exceed 650 Millions of pesos for each fiscal year for investment projects in domestic film production or 50 million pesos for each fiscal year for investment projects in the distribution of film films. national.

The quantities referred to in the preceding paragraph shall be divided into equal amounts for distribution in two periods during the tax year.

III. In the case of investment projects in national film production the amount of stimulus will not exceed 20 million pesos for each taxpayer and investment project.

Dealing with investment projects for the distribution of national film films, the The stimulus will not exceed two million pesos for each taxpayer and investment project. In the event that two or more contributors distribute the same national film film, the Inter-Agency Committee may grant the same amount to only two of the contributors.

IV. The Inter-Agency Committee shall publish no later than the last day of February of each fiscal year, the amount of the stimulus distributed during the previous financial year, as well as the beneficiaries and the investment projects in the national film production and distribution of national film films for which were worthy of this benefit.

V. Taxpayers will have to comply with the general rules for granting the encouragement to publish the Interinstitutional Committee.

Article 190. A fiscal stimulus is granted to income tax payers, consisting of applying a tax credit equivalent to the amount that, in the tax year in question, will contribute to investment projects in the production of the theater. (a) national, against income tax for the year and for interim payments for the same financial year, caused in the year in which the credit is determined. This tax credit will not be cumulative for income tax purposes. In no case shall the stimulus exceed 10% of the income tax in the immediate financial year preceding that of its application.

When the credit referred to in the preceding paragraph is higher than the income tax in the financial year in which the stimulus is applied, taxpayers may apply the difference resulting from the against income tax in the next ten years until it is exhausted.

For the purposes of this article, they will be considered as investment projects in the national theater production, investments in national territory, specifically aimed at the assembly of dramatic works through a process in which the creation and theatrical performance are combined, as well as the human, material and financial resources required for such an object.

For the application of the fiscal stimulus referred to in this Article, the following shall be:

I. An Inter-Institutional Committee will be set up to be formed by a representative of the National Council for Culture and the Arts, one of the Institute National of Fine Arts and Literature and one of the Secretariat of Finance and Public Credit, who will chair the Committee and have a vote of quality.

II. The total amount of the fiscal stimulus to be distributed among the candidates for the benefit will not exceed 50 million pesos for each fiscal year or 2 millions of pesos for each taxpayer and investment project in the national theater production.

III. The Interinstitutional Committee referred to in section I of this article shall publish no later than the last day of February of each fiscal year, the amount of the fiscal stimulus distributed during the previous financial year, as well as the beneficiaries and the projects for which they were worthy of such benefit.

IV. Taxpayers will have to comply with the general rules that for the granting of the stimulus will publish the Inter-Institutional Committee refers to the fraction I of this article.

CHAPTER V

OF TAXPAYERS DEDICATED TO BUILDING AND DISPOSING OF REAL ESTATE DEVELOPMENTS

Article 191. Taxpayers who engage in the construction and disposal of real estate developments may choose to deduct the cost of acquiring land in the year in which they are used. acquire, as long as they comply with the following:

I. That the land be destined for the construction of real estate development, for its disposal.

II. That the corresponding cumulative revenue comes from the realization of real estate developments at least eighty-five percent.

Dealing with taxpayers who initiate transactions, they may exercise the option referred to in this Article, provided that the revenue is cumulative for that financial year they come from the realisation of real estate developments at least eighty-five per cent and comply with the other requirements set out in this Article.

III. That at the time of the disposal of the land, the total value of the disposal of the land in question is considered to be cumulable, instead of the gain as referred to in Article 18, fraction IV of this Act.

Where the disposal of the land is carried out in any of the years following that in which the deduction referred to in this Article was made, an amount equal to 3% of the amount deducted in accordance with this Article shall be further considered as a cumulative income in each of the financial years from the year in which the land was acquired and until the immediate financial year prior to the one in which the same applies. For the purposes of this paragraph, the amount deducted under this Article shall be updated by multiplying it by the updating factor corresponding to the period from the last month of the year in which the land was deducted and up to the last month of the year in which the 3% referred to in this paragraph is accumulated.

IV. The cost of land acquisition is not included in the estimate of direct and indirect costs referred to in Article 30 of this Regulation. Law.

V. That in the public deed in which the acquisition of these lands is recorded, the information provided by the Regulation of this Law is settled.

Taxpayers who have not made the land after the third immediate post-exercise exercise after which they were acquired, should consider the cost of acquiring such land as a cumulative income, updated by the period from the date of acquisition of the land and until the last day of the month in which the entry is accumulated.

Taxpayers applying this article must do so in respect of all their land which is part of their working assets, for a minimum period of 5 years from the date of exercise in which they exercise the option referred to in this Article.

CHAPTER VI

OF PROMOTING INVESTMENT IN VENTURE CAPITAL IN THE COUNTRY

Article 192. To promote investment in venture capital in the country, the tax treatment established in Article 193 of this Law will be given to persons who invest in shares issued by Mexican companies resident in Mexico that are not listed in exchange at the time of the investment, as well as in loans granted to these companies to finance them, through the trusts in which the following requirements are met:

I.           That the trust be established in accordance with Mexican law and the trust is a credit institution resident in Mexico to act as such in the country.

II. That the primary purpose of the trust is to invest in the capital of Mexican companies resident in Mexico not listed at the time of the investment and participate in their board of directors to promote their development, as well as grant them funding.

III. That at least 80% of the trust's equity is invested in the shares that integrate the investment in the capital or in financing granted to the promoted companies referred to in the previous Part II and the remainder shall be invested in securities by the Federal Government entered in the National Securities Register or in shares of investment companies in debt instruments.

IV. That the actions of the promoted societies that are acquired do not come into being before the end of at least a two-year period counted from of the date of its acquisition.

V. The trust will last for a maximum of 10 years.

At least 80% of the revenue received by the trust in the year shall be distributed at least two months after the end of the year.

VI. The requirements that are met by general rules of the Tax Administration Service are met.

Article 193. People who invest in venture capital through the trusts referred to in Article 192 of this Law shall be as follows:

I.           They will cause the tax in the terms of Titles II, IV, or V of this Law, as appropriate, by the income that the trust institution gives them from the shares and securities that make up the trust's assets or that they derive from the alienation of them, as well as those arising from the financing granted to the societies promoted.

II.          The trust institution must bear an account for each type of income it receives from the shares and the securities, as well as from those arising from the disposal of them, and those arising from the financing granted to them. the societies promoted. In an account it shall record the dividends it receives for the shares; in another it shall record the interest it receives for the securities and the profits obtained in its disposal; in another it shall record the interest it receives for the financing granted to the the companies promoted, and in another more will record the profits that are obtained by the disposal of the shares.

Each of the accounts referred to in the preceding paragraph shall be increased with the income corresponding to it received by the trust institution and it shall be reduced by the revenue that the institution gives to the trustees from the institution.

III.         The trust institution must also keep an account for each of the persons who participate as a trustee and trustee in the trust, in which it records the contributions made by each of them in the individual to the trust.

Each person's account will be increased with the contributions made by it to the trust and will be reduced with the repayments of such contributions that the Trust institution will deliver you. The balance of each of these accounts as at 31 December of each year shall be updated for the period from the month in which the last update was made and until the month of December of the year in question. Where contributions or capital repayments are made after the update provided for in this subparagraph, the balance of the account held at that date shall be updated for the period from the month in which the last account was taken. update and up to the month in which the contribution or reimbursement is paid, as appropriate.

IV. When trustees are natural persons resident in the country or persons residing abroad, the trust institution shall retain them. the tax applicable for the type of income that is given to them in the terms of Title IV or V of this Law, respectively, or, where applicable, in accordance with the provisions of the agreements to avoid double taxation concluded by Mexico with the countries in which persons residing abroad who receive the income are resident. Persons who pay interest to the trust institution for the funds granted and the securities held by the trust, or who acquire from it shares of the companies promoted shall not retain income tax on them. revenue or acquisitions.

V.          The trust institution must provide evidence of the income and, where appropriate, of the tax withheld by them, as well as the reimbursement of contributions, to the persons who receive them as trustees of the trust in question.

VI. When any of the trustees give in to the rights held in the trust, they shall determine their gain in the disposal of the assets. members of the trust that implies the transfer, as expressly provided in the section VI of Article 14 of the Fiscal Code of the Federation, considering as proven cost of acquisition of the same the amount that will result from add to the balance you have in your individual account of the transfer to the date of the disposal; the party that corresponds to him for those rights in the individual of the balances of the income accounts referred to in the second paragraph of this article and the balance of the account referred to in the following paragraph, to that same date. When the trustee does not give up all the rights that he has in the trust, but only a part of them, his proven cost of acquiring the goods in the end will be the amount that will be multiplied by the amount to which he refers. This paragraph shall be the percentage that results from dividing the percentage share in the trust that represent the rights in the same percentage of the percentage of the share in the trust representing all the rights that it has to the date of the disposal.

For the purposes of the preceding paragraph, the trust institution shall bear an account in which it records the holding of the trust in the net tax profits of the companies promoted by the investment made in them, which are generated from the date on which their shares are acquired in the trust and which are part of the balance of the net tax utility of the such companies.

When the rights that are transferred have been acquired from third parties, the proven cost of acquiring them will only increase or decrease, respectively, for the difference between the balance on the date of disposal and the balance at the date of acquisition of the rights, updated up to the date of disposal, of the income accounts referred to in the second part of this Article and of the the account referred to in the preceding paragraph.

VII. When any of the requirements referred to in Article 192 (IV) and (V) of this Law are not met, the trustees shall cause the tax. at the rate established in the first paragraph of Article 9 of this Law for the tax utility deriving from the income received by the trust institution, in the terms of Article 13 of this same Law, from the immediate year after that where the non-compliance occurs.

CHAPTER VII

OF PRODUCTION COOPERATIVE SOCIETIES

Article 194. Cooperative production companies that are only constituted by natural persons, to calculate the income tax that corresponds to them activities that they perform, instead of applying the provisions of Title II of this Law, may apply the provisions of Section I of Chapter II of Title IV thereof, considering the following:

I.          Calculate the tax for the financial year of each of its members, determining the part of the taxable profit of the financial year corresponding to each partner for their participation in the cooperative society concerned, applying the the provisions of Article 109 of this Law.

The cooperative production companies referred to in this Chapter may defer the entire tax referred to in this Chapter until the tax year in which they distribute to their partners the taxable profit that corresponds to them.

In cases where the companies referred to above, determine utility and do not distribute it in the following two years from the date on which they are determined, the tax will be paid in the terms of this Chapter.

When the cooperative society in question distributes to its partners profits from the taxable income account, it will pay the deferred tax applying to the amount of the utility distributed to the partner concerned the rate referred to in Article 152 of this Law.

For the purposes of the preceding paragraph, the first utilities to be distributed are considered to be the first utilities that were generated.

The tax that in the terms of this fraction corresponds to each of its partners, will be paid by declaration that will be presented to the offices approved by 17 of the immediate month following that in which the taxable profits were paid, the partner of the cooperative concerned may prove in its annual declaration of the financial year corresponding to the tax paid in respect of the the terms of this paragraph.

For the purposes of this Chapter, the cooperative production company shall be deemed to distribute profits to its members, when the utility is taxable to This fraction shall be invested in financial assets other than accounts receivable from clients or resources necessary for the normal operation of the company concerned.

For the purposes of this Chapter, cooperative production companies that do not distribute returns to their partners may only invest such resources in goods which in turn generate more jobs or cooperative partners.

II. Cooperative production societies will carry a taxable profit account. This account shall be added to the taxable profit of the financial year and shall be reduced by the amount of the taxable amount paid.

The balance of the account provided for in this fraction, which is held on the last day of each financial year, without including the taxable income of the financial year, shall be updated by the period from the month in which the last update was made and until the last month of the financial year in question. When distributing profits from this account after the update provided for in this paragraph, the balance of the account held at the date of the distribution shall be updated for the period from the month in which the account is taken. the last update was made and until the month in which those utilities were distributed.

The balance of the taxable income account shall be transmitted to another company or other company in the case of merger or division. In the latter case, that balance shall be divided between the company being divided and the divided companies, in the proportion in which the accounting capital of the state of financial position approved by the general assembly is carried out. extraordinary and has served as the basis for the split.

The taxable utility referred to in this section shall be that determined by the cooperative society concerned, in accordance with Article 109 of this Law, for the whole of the partners that make up the company.

III.        No interim income tax payments will be made for income earned by the cooperative society.

IV.        The income and advances granted by cooperative societies to their members shall be regarded as income equivalent to income from the provision of a subordinate personal service and the provisions of Articles 94 and 96 of this Act.

Article 195. Cooperative production companies that choose to apply the provisions of this Chapter may not change their option in subsequent years, except when complying with the requirements to be laid down in the Regulation of this Law. When taxpayers stop paying the tax in the terms of this Chapter, they will not in any case be able to retribute in the terms of this Chapter.

TEMPORARY VALIDITY PROVISIONS OF THE INCOME TAX LAW

ARTICLE EIGHTH. For the purposes of the provisions of section I, paragraph (a), 2 of Article 166 of the Income Tax Act, during the fiscal year 2014, interest shall be This provision may be subject to a rate of 4.9%, provided that the beneficial owner of those interests is resident of a country with which a treaty is in force to avoid double taxation with Mexico and meet the requirements laid down in that treaty for the application of the The same applies to this type of interest.

TRANSITIONAL PROVISIONS OF THE INCOME TAX LAW

ARTICLE NINTH. In connection with the Income Tax Act referred to in Article 7 of this Decree, you will be the following:

I. The Income Tax Act referred to in Article 1 of this Decree shall enter into force on 1 January 2014, except in other cases. articles of the same are set to different entry dates.

II. The Income Tax Law published in the Official Journal of the Federation on January 1, 2002 is repealed. The Regulation of the Income Tax Law dated October 17, 2003 will continue to apply in what is not opposed to the present Income Tax Law and until a new Regulation is issued.

The obligations and rights arising from the Income Tax Act which is repealed under this fraction, which would have been born during its term of office, by the implementation of the legal or factual situations provided for in that Law, must be complied with in the forms and time limits laid down in that law and in accordance with the provisions, resolutions to consultations, interpretations, authorizations or permits of a general nature or which have been granted in particular, in accordance with the Law that is repealed.

III. When in the Income Tax Act reference is made to legal or factual situations, relating to earlier exercises, they shall be construed as including, where applicable, those that were verified during the lifetime of the Income Tax Act that is repealed.

IV.         As of the date of the entry into force of the Income Tax Law, the laws, regulations, administrative, resolutions, consultations, interpretations, authorizations or permits of a character are without effect. general or which would have been granted in a particular way, which contravene or object to the provisions of this Law.

V. The taxpayers who prior to the entry into force of the Income Tax Act had made investments in the terms of the Article 38 of the Law on Income Tax which is repealed, which have not been deducted in their entirety prior to the date of entry into force of this Law, shall apply the deduction of such investments under Section II of the Chapter I of Title II of the Law on Income Tax, only on the balance that according to The Law of Income Tax that is opened is pending to be deduced, and considering as the original amount of the investment the one that corresponded in the terms of this last Law.

VI. The taxpayers who before the entry into force of the Income Tax Act, would have suffered tax losses in the terms of the Chapter V of Title II of the Income Tax Act which is repealed, which would not have been reduced in full to the date of entry into force of this Law, will decrease those losses in the terms of Chapter V of Title II of the Law of the Income Tax, considering only the balance of that outstanding loss of decrease, according to the Income Tax Law that is repealed, is pending to be decreased.

VII.        Until as long as the new Conventions of Administrative Collaboration in the Federal Fiscal Matters enter into force, the delegated powers regarding the income tax contained in the Conventions of Collaboration will continue in force. Administrative in Federal Fiscal Matters concluded by the Federal Government through the Secretariat of Finance and Public Credit with the federal entities in force and corresponding annexes, as well as their respective amending agreements.

The exercise of the delegated powers in respect of income tax, in accordance with the existing conventions referred to in the preceding paragraph, shall be construed as referring to the Income Tax Act as of the date of its entry into force.

The matters relating to income tax which at the date of entry into force of this Law are pending before the tax authorities of the entities They will be concluded by these, in the terms of the Income Tax Act that is repealed.

VIII.       The federative entities will maintain in force the powers of verification referred to by the Fiscal Code of the Federation and the Law of Income Tax that is repealed, so that it makes the tax obligations of the taxpayers for the financial year 2013 and earlier.

IX. Taxpayers who are required to submit information statements in the terms of the Income Tax Act that is repealed shall submit the statements for the financial year ending on 31 December 2013 at the latest by 15 February 2014.

X. For the purposes of the obligation to present the information and constances provided for in Articles 86, fractions III, IV, VIII, IX, X, XIV, 101, VI, 118, III, V, 143, last paragraph, 144 and 164 of the Income Tax Act which is repealed, shall be complied with in the terms of that Act, from 1 January 2014 until 31 December 2016.

XI. Taxpayers who have chosen to consider as income obtained in the year, the share of the price actually charged in a term disposal in terms of Article 18, section III of the Law on Income Tax which is repealed, which still have outstanding amounts to accrue to the entry into force of this Decree, in respect of the period of time held until December 31, 2013, they will be as follows:

(a) Will apply the provisions of the Income Tax Act that is repealed, up to as long as they accumulate the outstanding amount of the total price agreed upon in the disposal, in respect of all the time-limits.

The tax resulting from the scheme contained in the second paragraph of Article 18 (III) of the Income Tax Act which is repealed, may be entered in the two equal parts, 50% in the year in which the income is accumulated and the remaining 50% in the following financial year.

The tax which may be deferred in accordance with the preceding paragraph, shall be that which corresponds to the proportion of the time-limits in respect of all the the operations carried out by the taxpayer in the period in question. The tax that is deferred under this paragraph will be updated from the month the option was taken, and until the month in which the option is paid.

b) When the taxpayer enacts the pending collection or payment documents, you will need to consider the amount outstanding to accumulate as income earned in the financial year. To do the disposal or the payment in payment, in terms of the Income Tax Law that is repealed.

c) In the event of non-compliance with the term contracts, the enajenante shall consider as income obtained in the financial year the amounts collected in the same year. buyer, decreased by the amounts that would have already been returned under the respective contract, in terms of the Income Tax Act that is repealed.

XII. Taxpayers who have chosen to accumulate their inventories, to determine the cost of the sold, shall continue to apply the provisions of fractions IV, V, VI, VII, IX and XI of the Third Article of the Transitional Provisions of the Income Tax Act of the Decree for which they are reformed, add, repeal and establish various provisions of the Law on Income Tax and the Law of the Tax on the Asset and establishes the Employment and Employment Allowances Entry, published in the Official Journal of the Federation on 1 December 2004.

XIII. Capital investment companies as at 31 December 2013, would have exercised the option provided for in Article 50 of the Tax Act. The income that is opened, and only in respect of investments in promoted societies that they have made up to that date, shall accumulate the profits by disposal of shares, interests and the annual adjustment for inflation, until the financial year tax on which they distribute dividends to their shareholders.

For the purposes of the preceding paragraph, the capital investment companies shall update the proceeds from the disposal of shares and the interest from the month in which they obtain them and up to the month in which they distribute them to their members. The companies that exercised the above options will deduct the annual adjustment for deductible inflation, updated interest, as well as the updated losses by disposal of shares, in the year in which they distribute the profit or the interests identified. The deductible interest and the loss by disposal of shares shall be updated for the period from the month in which the interest was due or the loss occurred and until the last month of the financial year in which the interest was paid. deduce.

When capital investment companies that have chosen to accumulate income under the terms set out in the preceding paragraph, distribute dividends, they must be within the meaning of Article 10 of the Income Tax Act.

In the cases referred to in the preceding paragraph, the investment company concerned shall be reduced from the net tax profit to be determined in respect of the terms of the third paragraph of Article 77 of the Income Tax Act, corresponding to the year in which the distribution was made, the amount of dividends distributed in the terms of this fraction.

The provisions of this fraction shall apply only to investments in shares of companies promoted which have been carried out until 31 December 2013.

Capital investment companies for the proceeds by disposal of shares, interest and the annual adjustment for inflation, in respect of investments in companies promoted from January 1, 2014, for their accumulation, will be within the provisions of the Law of Income Tax.

XIV. Effective January 1, 2014, credit institutions will not be able to deduct losses from bad credits, which come from creation or increase of global preventive reserves that have been deducted under Article 53 of the Income Tax Act that is repealed.

When the accumulated balance of the global preventive reserves for which the option provided for in Article 53 of the Income Tax Law was exercised which is opened, which in accordance with the tax provisions or those laid down by the National Banking and Securities Commission, have the credit institutions at 31 December of the financial year in question, whichever is less than the cumulative balance updated of the abovementioned reservations which would have been taken on 31 December of the immediate financial year the difference shall be considered as a cumulative income in the financial year in question. The balance of the global preventive reserves that the credit institutions have on December 31, 2013 in terms of the fourth paragraph of Article 53 of the Income Tax Act that is repealed, may be maintained in the accounting account. that for these purposes the National Banking and Securities Commission establishes and does not apply the provisions of this paragraph until they are liquidated, broken, renewed or restructured the credits that gave rise to those reserves. Taxpayers who apply the provisions of this paragraph shall report by 15 February each year at the latest the concepts which they deducted in the terms of this paragraph in the preceding immediate calendar year, in accordance with the provisions of this paragraph. provisions that the Tax Administration Service will issue.

The cumulative balance of the overall preventive reserves shall be updated for the period from the last month of the previous immediate financial year to the last month of the financial year in question. In this case, the cumulative income referred to in the preceding paragraph may be reduced, until exhausted, the updated surplus of the overall preventive reserves to be deducted, provided that they have not been deducted prior to the terms of Article 53 of the Income Tax Act that is repealed.

For the calculation of the cumulative income referred to in the preceding paragraph, the reductions applied against the reserves shall not be considered as order or authorize the National Banking and Securities Commission.

The credit institutions which, as of 31 December 2013, have surplus of Global Preventive Reserves to be applied in accordance with Article 53 of the Income Tax Law, which is repealed, may be deducted in each financial year provided that the amount of the losses due to nonperforming loans in the financial year corresponding to the corresponding financial year is less than 2.5% of the average annual balance of the appropriations for the financial year concerned. The amount deducted shall be the amount that is deducted from the amount of the annual average balance of the financial year of the financial year the amount of the losses due to bad loans deducted in the corresponding financial year.

Once the credit institution has deducted, in accordance with the previous paragraph, the total of the surplus of Global Preventive Reserves pending application, may deduct, in addition to the provisions of Article 27 (XV) of this Law, the amount of the quests, grants, bonuses and discounts on the portfolio of credits representing services for which interest on their behalf, as well as the amount of the losses arising from the sale (a) to carry out such a portfolio, and for any losses incurred during payment. The above as long as it does not lead to a double deduction in time and has not been performed between related parties.

XV.        Taxpayers who, as of December 31, 2013, were authorized to determine their consolidated tax result in the terms of Chapter VI of Title II of the Income Tax Act that is repealed and completed. with the five-year period provided for in the third paragraph of Article 64 of that Law, they shall be as follows:

a) On the occasion of the abrogation of the Income Tax Act, the controlling company must unconsolidate all the companies in the group, including and to pay the deferred tax which they have pending from the whole to 31 December 2013, applying for such effects the procedure provided for in Article 71 of the Income Tax Act which is opened, or the following procedure:

1. Recognizes the effects of deconsolidation at the end of the financial year 2013, by means of a supplementary declaration of that financial year, for which, subtract, as the case may be, the consolidated tax utility or the consolidated tax loss for that financial year:

i) Special concepts of consolidation, which, if any, have continued to be determined by the operations corresponding to fiscal years prior to the fiscal year 2002 in the terms of the second paragraph of section XXXIII of the Second Article of the Transitional Provisions of the Income Tax Law, published in the Official Journal of the Federation on 1 January (a) to be considered as having been carried out in 2002, third parties, from the date on which the operation was performed which made them qualify as special consolidation concepts, calculated in the terms of Article 57-J of the Income Tax Act and other applicable provisions until on 31 December 2001.

ii) The amount of prior exercise tax losses that controlled companies and the controller have the right to decrease at the time of the deconsolidation, considering for these purposes only those exercises in which the tax losses of these companies were subtracted to determine the consolidated tax result.

The outstanding losses as referred to in the preceding paragraph and those referred to in the second paragraph of Article 71 of the Income Tax Act be opened, shall include both those determined at 31 December 2012 and those generated in the financial year 2013.

iii) The amount of losses arising from the disposal of shares of controlled companies and the controller, where such losses would have been subtracted to determine the consolidated tax result of the year in which they were generated and provided that such losses could not have been deducted by the company that generated them.

For the purposes of this numeral, the special concepts of consolidation and fiscal losses of prior years, as well as losses in disposal of shares in the controlled companies and the controller shall be added or subtracted, as appropriate, in the consolidated holding of the financial year 2013. The special consolidation concepts for pre-1999 financial years of controlled companies and of the controller shall be added or subtracted as appropriate, in the average daily share of the financial year 2013. The participations referred to in this paragraph are those that are determined in accordance with the provisions of the penultimate paragraph of section I of article 68 of the Income Tax Act that is repealed.

The special consolidation concepts referred to in the preceding paragraph shall be updated for the period from the last month of the fiscal year to the operation which led to those concepts was carried out in the case of the transactions referred to in Articles 57-F, fraction I and 57-G, fractions I and II of the Income Tax Act until 31 December 2001, and from the last month of the period in which the update was made in the case of the deduction by the investment of goods subject to the operations referred to and until the month in which the deconsolidation is carried out. The losses arising from the disposal of shares shall be updated from the month in which they occurred and until the month in which the deconsolidation takes place. In the case of pending tax losses of the controlled companies and the controller, they shall be updated from the first month of the second half of the year in which they occurred and until the month in which the deconsolidation.

Once the consolidated fiscal utility of the 2013 financial year resulting in this number is determined, the controller shall determine the tax that is in the terms of Article 10 of the Income Tax Act that is repealed. Such controller shall determine the corresponding consolidated net tax profit and the surplus in this respect from the net tax profit of the financial year referred to in the statement above to which it is to be submitted in accordance with the provisions of the the first paragraph of this numeral may increase the balance of the consolidated net tax utility for the purposes of the mechanics provided for in the following number 3.

2. The controlling company must pay the tax that is caused in the terms of Article 78, the first paragraph of the Income Tax Act that is (a) in respect of dividends or profits not from its net tax profit account, or from its reinvested net tax profit account, which has been paid by the controlled companies to other companies in the same consolidation group. The tax shall be determined by applying the rate laid down in Article 10 of that Law, to the amount resulting from multiplying by the factor of 1.4286 the updated amount of such dividends or profits for the period elapsed since the month of your payment until the month in which the deconsolidation is performed.

For the purposes of the preceding paragraph, the controlling company shall not consider dividends or profits in cash or goods paid or distributed with prior to 1 January 1999 which did not come from the net tax utility account.

dividends or profits distributed in cash or goods, in accordance with the preceding paragraph, shall not increase the accounts of the companies which have received.

For the purposes of the first paragraph of this numeral, it may be chosen that the corresponding tax is to be found by the company having the character of controlled the distribution of dividends or profits, in which case the whole shall be effected within five months of the month in which the deconsolidation referred to in point (a) of this fraction is carried out. In this case, the company that makes the whole may credit the tax in terms of the provisions of the section I of article 10 of the Law on Income Tax in force from 1 January 2014 and must decrease the balance of the Net tax utility to January 1, 2014 the amount that will result from dividing the tax effectively paid in the terms of this paragraph between the factor of 0.4286.

In the event that the amount that is reduced is greater than the balance of the account, the difference will be reduced from the balance of the net tax income account that be determined in the following exercises until exhausted.

Once the whole of the tax referred to in the preceding paragraph has been made, the company which has received the dividend or utility in question may increase the balance of your net tax income account with the updated amount of the dividends or profits for which the tax has been paid. For such purposes, the company which has had the character of the control and which carries out the whole shall issue a constancy to the receiving company of the said dividend or utility, containing the data indicated by the Management Service. Tax by general rules.

The application of the above option will be subject to the fact that the company which has had the character of the controller submits a notice to the Service of Tax administration no later than the last day of February 2014, by means of a free letter stating the name or social reason of each of the companies that will make the payment of the tax, indicating both the amount of the dividend or utility as the tax corresponding to each of them, as well as the the name or social reason of the company or companies which have received the dividend or utility in question and which shall increase the balance of its net tax profit account on the basis of the option exercised.

3. The controller will determine, if applicable, the utility that corresponds to the net tax utility account balances, as applicable next:

Compare the balance of the individual net tax utility accounts of the controlled companies and that of the controller to the corresponding share, with the consolidated net tax profit account, including, where applicable, the effects indicated in paragraph 1 of this paragraph. In the event that the latter balance is higher than the first balance, the balance of the consolidated net tax income account shall be reduced only by the individual balance of the controls and the controller itself. If, on the other hand, the balance of the consolidated net tax profit account is less than the sum of the individual balances of the controlled and the controller itself, the result of multiplying the difference between both balances by the factor of 1.4286. On that utility the controller will determine the tax that results in the terms of article 10 of the Income Tax Law that is opened and will be reduced from the balance of the consolidated net tax income account the balance of the individual accounts of the controls and the controller itself, until it is taken to zero.

For the purposes of the comparison referred to in this numeral, only the balances of the individual net tax profit accounts of the the controller and the controls, as well as the consolidated net tax profit account which was generated from 1 January 2008 until 31 December 2013.

The income tax payable on the basis of the deconsolidation shall be the sum of the tax determined in accordance with the numerals 1, 2 and 3 of this paragraph.

The procedure referred to in this paragraph shall not proceed with respect to the concepts by which the taxpayer has already informed the deferred tax that refers to section VI of Article 4 of the Transitional Provisions of the Income Tax Law, published in the Official Journal of the Federation on 7 December 2009, or referred to in Article 70-A of the same Law, or when the tax is to be found to be subject to the scheme of payments as set out in the above tax provisions.

The controlling company which has special consolidation concepts referred to in paragraph 1 (i) of this point (a) may pay the deferred tax corresponding to the same, until the goods that gave rise to these concepts are alienated from persons outside the group in terms of Chapter VI of Title II of the Law that is repealed.

b) Regardless of the procedure chosen to determine the tax resulting from the deconsolidation referred to in point (a) of this fraction, when the controlling company in the financial years 2010, 2011, 2012 or 2013 has chosen to apply the provisions of Rule I. 3.5.17. of the Miscellaneous Fiscal Resolution for 2009, published in the Official Journal of the Federation on March 31, 2010; I. 3.6.16. of the Miscellaneous Fiscal Resolution for 2010, published in the Official Journal of the Federation on December 28, 2010 or I. 3.6.13. of the Miscellaneous Fiscal Resolutions for 2011, 2012 and 2013, published in the Official Journal of the Federation on July 2011, December 28, 2011 and December 28, 2012, respectively; shall determine and find out the income tax corresponding to the comparison of the balances of the consolidated net tax income account record that the option exercised was not determined or found in the exercise corresponding.

For the purposes of the preceding paragraph, the company which has had the character of the controller may increase the registration of the account of the Consolidated net tax utility the amount resulting from the reduction in the amount of tax losses for which the deferred tax referred to in point (a) of Article 4 (VIII) of the Transitional Provisions was determined of the Law on Income Tax, published in the Official Journal of the Federation on 7 March In December 2009 or in Part I of Article 71-A of the same Law, the income tax that has been imposed on them in terms of the provisions set forth.

c) The tax to be determined in accordance with the provisions of (a) and (b) of this fraction, the company which had the controlling character in five fiscal years must be aware of the following payment scheme:

1. 25%, no later than the last day of May 2014.

2. 25%, no later than the last day of the month of April 2015.

3. 20%, no later than the last day of the month of April 2016.

4. 15%, no later than the last day of the month of April 2017.

5. 15%, no later than the last day of the month of April 2018.

The payments referred to in numerals 2 to 5 of this paragraph shall be made up to date with the factor corresponding to the period from month to the payment referred to in the numeral 1 of this paragraph and until the immediate month preceding that in which the payment is made.

d) Companies that have had the character of controllers at 31 December 2013 and that are subject to the content payment scheme at that date in section VI of Article 4 of the Transitional Provisions of the Income Tax Act, published in the Official Journal of the Federation on 7 December 2009, or in Article 70-A of the Income Tax Act, which is (a) the tax which would have been deferred on the basis of the fiscal consolidation in the financial years 2007 and above in accordance with the above provisions, until their payment is terminated under the scheme outlined.

e) The controlling company to determine the tax on the asset that will have to be entered by the deconsolidation as well as the one that will be able to recover the assets controlled companies and itself, must be within the provisions of the third article of the Third Article of the Decree for which various provisions of the Law on Income Tax, of the Fiscal Code of the Law of the European Union, are amended, added and repealed. Federation of the Law on the Special Tax on Production and Services and the Tax Law to the Value Added, and the Employment Allowance is established, published in the Official Journal of the Federation on 1 October 2007.

The balance of the consolidated net tax profit account as at 31 December 2013, which is, if applicable, after the deconsolidation is effected refers to this fraction, shall not have any subsequent tax effect.

XVI.       Taxpayers who, as of December 31, 2013, are authorized to determine their consolidated tax result in the terms of Chapter VI of Title II of the Income Tax Act that is repealed, and are within of the five-year period referred to in the third paragraph of Article 64 of that Law, may continue to determine the consolidated income tax during the fiscal years to be completed to conclude that period, in accordance with the provisions laid down in that Chapter and in Chapter V of the Title II of the Regulation of the Law on Income Tax and other provisions that were found in force on 31 December 2013. Also, those taxpayers must comply with the obligations relating to the submission of the notices referred to in Chapter VI, resulting in the applicable infringements and fines referred to in the fractions XI and XII of the Articles 81 and 82 of the Tax Code of the Federation, in force until 31 December 2013.

For the purposes of the above, after the end of the five-year period, the controlling company shall determine the deferred tax in accordance with the provisions of the previous XV fraction and enter it in accordance with the following payment scheme:

a) 25% in the month of May of the first fiscal year after the end of the five financial years.

b) 25% in the month of April of the following fiscal year to that mentioned in the preceding paragraph.

c) 20% in the month of April of the following fiscal year to that mentioned in the preceding paragraph.

d) 15% in the month of April of the following fiscal year to that mentioned in the preceding paragraph.

e) 15% in the month of April of the following fiscal year to that mentioned in the preceding paragraph.

The integers referred to in points (b) to (e) of this fraction shall be updated with the update factor corresponding to the period from the the month in which the payment referred to in point (a) of this fraction was made and until the immediate month preceding that in which the integer of the bias in question is made.

XVII.      Taxpayers who, as of December 31, 2013, were authorized to determine their consolidated tax result in the terms of Chapter VI of Title II of the Income Tax Act that is repealed, may exercise from 1 January 2014, the option referred to in Chapter VI of Title II of the Income Tax Act, without it being necessary to obtain the authorization referred to in Article 63 of the Income Tax Act; prior to the date of the date of the date of the date of the entry into force of the date of the entry into force of this Regulation. indicate that it will exercise such an option and manifest the name or social reason of all the companies that will make up the group as well as the percentage of inclusive participation of the integrating society in each integrated society.

For the purposes of the foregoing paragraph, the group of companies shall meet the requirements referred to in Articles 60 and 61 of the Income tax and in addition not to be located in any of the cases referred to in Article 62 of that Law. The integrative company that, as of January 1, 2014, does not have the participation established in Article 61 of this Law in its integrated societies, will be able to exercise the option in commented, provided that at 31 December 2014 it complies with the the participation required in those Articles and is not a company referred to in Article 62 of the same Law. In the event of failure to comply with that participation to the latter date, the integrating company must disintegrate the company concerned in accordance with the provisions of Article 68 of that Law, considering as a date of disincorporation 1 January 2014, and will have the obligation to pay the income tax that was deferred in the interim payments for the exercise with update and surcharges, calculated from the time they were due to be made and until the payments are made.

The companies referred to in the first paragraph of this fraction with tax losses from previous financial years to be reduced in terms of the provisions of Article 57 of the Law on Income Tax which have been generated up to 31 December 2013 may be incorporated into this optional regime for groups of companies, without thereby reducing them losses.

XVIII.     The controlling companies which, in the financial year 2013, have opted to determine their deferred income tax in accordance with the procedure laid down in Article 71-A of the Income Tax Act which is repealed, may choose to determine the effects of deconsolidation, as follows:

a) You must determine the deferred tax from the financial years 2008 to 2013 by applying the provisions of Article 71-A of the Law of the Income Tax which is repealed and to make its whole in terms of the provisions of Article 70-A of the aforementioned Law.

b) Defend the asset tax that is due to be learned as well as the asset that can be retrieved by the deconsolidation companies that have had the character of control and control, for which they shall apply the provisions of the (e) of the fifteenth part of this transitional article.

(c) Where the controlling character of the company has opted for the financial years 2010, 2011, 2012 or 2013 by applying the provisions of Rule I. 3.5.17. of the Miscellaneous Fiscal Resolution for 2009, published in the Official Journal of the Federation on March 31, 2010; I. 3.6.16. of the Tax Miscellaneous Resolution for 2010, published in the Official Journal of the Federation on 28 December 2010 or I. 3.6.13. of the Miscellaneous Fiscal Resolutions for 2011, 2012 and 2013, published in the Official Journal of the Federation on 1 July 2011, 28 December 2011 and 28 December 2012 respectively; they shall determine and find out the deconsolidation of the income tax corresponding to the comparison of the balances in the register of the consolidated net tax income account that was not determined or learned in the respective financial year.

For the purposes of the preceding paragraph, the company which has had the character of the controller may increase the a consolidated net tax profit account record the amount resulting from the reduction in the amount of tax losses for which the deferred tax referred to in point (a) of Article 4 (VIII) of the fourth subparagraph is determined. Transitional provisions of the Income Tax Act, published in the Official Journal of the Federation on December 7, 2009 or section I of article 71-A of the same Law, the income tax that has corresponded to them in terms of the provisions set forth.

XIX. Companies that would have had the character of controllers will be able to make payment of the tax referred to by the (e) of the XV or the sub-paragraph (b) of the 18th fraction of this transitional article, as the case may be, in terms of the provisions of the provisions of the provisions of the sixth paragraph of the sixth paragraph of Article 70-A of the Income Tax Act which is repealed and considering the updating of the referred to in the seventh paragraph of that Article.

XX. For the purposes of the provisions of Article 62, part IX of the Income Tax Act, they shall be deemed to be those tax losses that would not have been diminished in their entirety and that were obtained in accordance with the provisions of Article 61 of the Income Tax Act that is repealed.

XXI. The moral persons who before the entry into force of this Law were taxed in accordance with Title II, Chapter VII of the Income Tax Law that is repealed, must comply with its members with the outstanding obligations that have been generated until December 31, 2013 in terms of the Income Tax Law that is repealed.

From the entry into force of this Law, the natural or moral persons belonging to the moral persons referred to in the preceding paragraph, they shall individually comply with the obligations laid down in this Law, in the terms of the Title applicable to them.

XXII. Civil societies or associations engaged in teaching, with authorization or recognition of official validity of studies in terms of the General Law of Education, as well as the institutions created by presidential decree or by law whose object is the teaching, that do not have authorization to receive deductible donations, as well as the associations or civil societies organised for sporting purposes, from The entry into force of this Decree must comply with the obligations of Title II of the new Law on Income Tax, however, must determine the distributable remnant generated before the entry into force of this Decree in the terms of Title III of the Income Tax Act which is repealed and its members and members shall consider as income to such remnant when the aforementioned moral persons are delivered to them in cash or in goods.

XXIII. The Tax Administration Service, by means of general rules, may grant administrative and for compliance with the tax obligations of the tax payers of the agricultural, livestock, forestry or fisheries scheme. The administrative facilities for checking the number of workers employed in the field, livestock feeding and minor expenditure may not exceed 10% of their own income with a limit of 800 000. thousand pesos.

XXIV.    For the purposes of Article 78 of the Income Tax Act, taxpayers who have commenced their activities before 1 January 2014 may consider as the initial balance of the capital account the amount of the capital account, the amount of that account would have been determined as at 31 December 2013, in accordance with Article 89 of the Income Tax Act until that date.

XXV. For the years 2001 to 2013, the net tax utility will be determined in the terms of the Income Tax Act in force in the fiscal year. in question. Also, for that period the dividends or profits received will be added and the dividends distributed in accordance with the provisions of the Law in force in the above exercises will be subtracted.

Where the sum of the income tax paid in the financial year in question, of the non-deductible items for the purposes of that tax and, where applicable, The difference will be reduced from the sum of the net tax profits to 31 of the same financial year, the difference will be reduced from the sum of the net tax profits to 31 of the (a) December 2013 or, where applicable, the net tax profit to be determined in the following financial years; until exhausted. In the latter case, the amount to be reduced shall be updated from the last month of the year in which it was determined and until the last month of the year in which it is reduced.

For the purposes of the preceding paragraph, income tax shall be that paid under the terms of Article 10 of the Income Tax Act. until 31 December 2013, and within the non-deductible items shall not be considered to be those referred to in Article 32 (VIII) and (IX) of the Income Tax Act in force until 31 December 2013.

Net tax profits obtained, dividends or profits received and dividends or profits distributed in cash or in goods shall be updated for the period from the last month of the year in which they were obtained, of the month in which they were received or of the month in which they were paid, as appropriate, until 31 December 2013.

XXVI.    Taxpayers who, as of December 31, 2013, were taxed under Section III of Chapter II of Title IV of the Income Tax Act that is repealed and, as of January 1, 2014, do not qualify for tax purposes. in the terms of Section II of Chapter II, Title IV of the Income Tax Act, shall pay the tax in accordance with Section I of the last Chapter mentioned.

For the purposes of the provisional payments to be made in the first financial year in accordance with Section I referred to in the preceding paragraph, consider as a utility coefficient the one that corresponds to its preponderant activity in the terms of Article 58 of the Fiscal Code of the Federation.

The taxpayers referred to in the first paragraph of this fraction, as of the date on which they are due to be taxed in Section I referred to in the paragraph above, they may deduct the investments made during the time they were taxed in Section III of Chapter II of Title IV of the Income Tax Act which is repealed, provided that they were not previously deducted and has the evidence of such investments which meets the tax requirements.

Dealing with fixed assets, the investment to be deducted will be determined by subtracting the original amount of the investment, the amount resulting from the multiply that amount by the sum of the maximum of hundreds authorized by the Law of Income Tax that is opened to deduct the investment in question, corresponding to the exercises in which the taxpayer has had such assets.

In the first financial year to pay the tax under Section I of Chapter II, Title IV of the Income Tax Act, to the original amount of the (i) investment in goods, the percentage of which shall be applied by the law for the good in question, in the proportion which they represent, in respect of the whole of the financial year, the months after the tax is paid in accordance with Section I mentioned.

Taxpayers who would have earned income from credit operations for which the tax would not have been paid in the terms of the penultimate paragraph Article 138 of the Income Tax Act, which is repealed, and which is no longer taxed under Section III of Chapter II of Title IV of the Income Tax Act which is repealed, in order to do so in the terms of Section I of the Chapter II of Title IV of the Income Tax Act, will accumulate such income in the month in which are charged in cash, goods or services.

XXVII.   The cooperative production societies which prior to the date of entry into force of the Income Tax Act, have been taxed in terms of Chapter VII-A of Title II of the Income Tax Act which is repealed, who have chosen to defer the tax for the financial years, will continue to apply the provisions of Article 85-A of the Income Tax Act which is repealed, until the tax is covered that would have been deferred only by the revenue received up to 31 December 2013.

From the entry into force of this Decree, the natural persons belonging to the moral persons mentioned in the (a) the income tax as a single legal entity in terms of income tax shall not be individually fulfilled by the obligations laid down in the new Income Tax Act; This Law.

The taxpayers referred to in the first paragraph of this fraction who have accumulated their income under the Law of the Income tax that is repealed, when they were actually collected, and that upon the entry into force of this Law will have income pending collection, will continue to apply the provisions of the Income Tax Law that is repealed, until they actually receive the amount outstanding, solely on the basis of revenue received until 31 December 2013.

XXVIII. The cooperative production societies that have been taxed in terms of Chapter VII-A of Title II of the Law of the Income tax which is repealed, and which has deferred tax in respect of the financial years before 1 January 2014, shall pay such tax in the tax year in which the taxable profit which is distributed to its members is distributed to its members. For these purposes, the deferred tax will be paid by applying to the amount of the utility distributed to the partner concerned, the rate referred to in Article 152 of the Income Tax Act.

Cooperative production societies, as from the entry into force of this Decree, will have to comply with their tax obligations in terms of Title II of the Income Tax Act.

XXIX. Financial intermediaries shall not hold withholding on interest income that they pay to natural persons, from the securities and securities, as referred to in Article 2, fractions LII, LXXII, fifth paragraph of the Transitional Provisions of the Income Tax Act, published in the Official Journal of the Federation on 1 January 2002, and Article 2, fractions XI and XV of the Transitional Provisions of that Law, published in the Official Journal on 30 December 2002, until the interest rate can be revised or revised, in accordance with the conditions laid down in its issuance.

XXX. The additional tax provided for in the second paragraph of Article 140, and fractions I and IV of Article 164 of this Law, only applicable to profits generated from the year 2014 that are distributed by the resident moral person in Mexico or permanent establishment. For this purpose, the moral person or permanent establishment who will make such a distribution will be obliged to maintain the net tax utility with the profits generated until December 31, 2013 and start another utility account Net fiscal with profits generated from January 1, 2014, in the terms of Article 77 of this Law. Where moral persons or permanent establishments do not carry the two accounts separately or when they do not identify the aforementioned utilities, the same shall be understood to be generated from the year 2014.

XXXI.    For the purposes of the last paragraph of Article 152 of the Income Tax Act, the oldest month of the period to be considered shall be the month of December 2013.

XXXII.   For the purposes of the third paragraph of Article 129 (a) and the ninth paragraph of Article 161 of this Law, in the case of the disposal of shares issued by Mexican companies or of securities that represent exclusively such shares, where its disposal is carried out on the markets for the concession securities or derivatives markets recognised in the terms of the Securities Market Act or shares issued by foreign companies listed on those stock exchanges or markets of derivatives, the disposal of securities representing equity indices in such stock exchanges or derivatives markets, and the disposal of shares issued by Mexican companies or securities which represent exclusively such shares, provided that the disposal of the shares or securities referred to is carried out in stock exchanges or derivatives markets located in recognized markets as referred to in Article 16-C of the Fiscal Code of the Federation of countries with which Mexico has a treaty to avoid double taxation; when the acquisitions of such shares or securities have been made prior to the the entry into force of this Law, instead of considering the average cost of acquisition, as referred to in point (a) of the third paragraph of Article 129 of this Law, to make the determination of the profits or losses arising from the disposal of shares and securities for each issuing company or securities representing such stock indices, it may be chosen to make such a determination by decreasing the selling price of the shares or securities, reduced by the fees for the intermediation paid for its disposal, the average acquisition value resulting from the the last twenty-two closing prices of those shares or immediate titles prior to the entry into force of this Law. If the last twenty-two closing prices are unusual in relation to the behaviour of the shares in question in the previous six months in respect of the number and volume of transactions, as well as their value, instead of taking the twenty-two Last closing prices will be considered the values observed in the last facts of the previous six months. Where the previous procedure is chosen, the average acquisition value of the shares or securities may be updated from the date of 31 December 2013 until the immediate month preceding the date of the first disposal.

XXXIII. For the purposes of the third paragraph of Article 88 and the second paragraph of Article 151 of this Article Law, in the event that the acquisitions of shares issued by the equity investment companies have been made prior to the entry into force of this Law, rather than considering the price of the assets under investment. of variable income at the date of acquisition, as referred to in the paragraph third of Article 88 of this Law, in order to make the determination of the gains or losses arising from the disposal of such shares, it may be chosen to make such a determination by decreasing the price of the assets under investment variable income on the date of sale of the shares of that investment company, the average value resulting from the last twenty-two closing prices of the immediate variable income investment items prior to the entry into force of this Law. If the last twenty-two closing prices are unusual in relation to the behaviour of the variable-income-invested assets in question in the preceding six months in respect of the number and volume of transactions, as well as their value, instead of taking the last twenty-two closing prices, the values observed in the last facts of the assets under investment of variable income of the previous six months shall be considered.

XXXIV. Taxpayers who prior to the entry into force of this Law have opted for make the immediate deduction of new assets of fixed assets, in accordance with Chapter II of Title VII of the Income Tax Act, which is repealed, they may not deduct the non-deductible part thereof.

When they fill in the goods to which they applied the immediate deduction, they lose them or cease to be useful, calculate the deduction for the amount to be applied, to the original amount of the investment adjusted with the updating factor corresponding to the period from the month in which the asset was acquired and until the last month of the first half of the period in which the deduction referred to in the Article has been made 220 of the Income Tax Act, which is repealed, by hundreds that are in accordance with the number of years since the deduction was made and the percentage of the immediate deduction applied to the good in question, according to the provided for in Article 221 of the Income Tax Act which is repealed.

For the purposes of employee participation in the profits of companies, the taxpayers who have chosen to apply the immediate deduction of the goods to which this fraction refers, they shall consider the deduction of such assets which would have been corresponding to them, in the amount to be applied to the original amount of the investment, the details set out in Articles 34, 35, 36 and 37 of the Law of Income tax.

XXXV. Commercial companies that as of December 31, 2013, would have applied the stimulus established in the Article 224-A of the Income Tax Act that is repealed, shall be as follows:

1. The shareholders who contributed real estate to the company, will accumulate the profit for the disposal of the assets contributed, when any of the following assumptions are updated:

a) Enajenen the shares of that company, in the proportion that these shares represent the total of the shares which the shareholder received for the contribution of the building to the company, provided that such a profit had not been previously accumulated.

(b) The company shall dispose of the assets provided, in proportion to the proportion of the assets represented by the same goods, provided that no such gain was previously accumulated.

If, as of December 31, 2016, the assumptions referred to in the preceding paragraphs have not been given, the shareholders referred to in this numeral shall accumulate the the total gain from the disposal of the assets that have not been previously accumulated.

2. The gain that is accumulated according to the previous number, will be updated from the month it was obtained and up to the month in which it is accumulated.

XXXVI. The taxpayers who until before the entry into force of this Law have chosen to deduct the cost of acquiring the land in the financial year The person who acquired them, in accordance with Article 225 of the Income Tax Act, must at the time of the disposal of the land, consider as a cumulative income the total value of the disposal of the land in question, in place of profit as referred to in Article 20 fraction IV of the Tax Law on the Income that is being abrogated.

Where the disposal of the land is carried out in any of the years following that in which the deduction referred to in this subparagraph was made, an amount equal to 3% of the amount deducted in accordance with this fraction shall be further considered as a cumulative income, in each of the financial years from the year in which the land was acquired and until the immediate financial year prior to the one in which the same applies. For the purposes of this paragraph, the amount deducted under this fraction shall be updated by multiplying it by the updating factor corresponding to the period from the last month of the year in which the land was deducted and up to the last month of the year in which the 3% referred to in this paragraph is accumulated.

XXXVII. The patterns that would have been established during the term of Chapter VIII, Title VII of the Income Tax Act that is repealed. new creation to be occupied by workers of first employment in the terms and conditions laid down in those Chapters, shall have the benefit to which the same applies in respect of such employment for up to a period of 36 months, according to the provided for by Article 232 of the Income Tax Act which is repealed.

XXXXVIII. Taxpayers who would have been obliged to pay the tax to the asset, which in the tax year in question effectively pay the tax income tax, may continue to apply, in its terms, the Third Transitional Article of the Business Tax Act to the Single Rate, published in the Official Journal of the Federation on October 1, 2007.

XXXIX. For the purposes of Article 189 of the Income Tax Law, the Inter-Agency Committee shall publish the general rules for the granting of stimulus to investment projects in the distribution of film films. at the latest by 15 January 2014 at the latest.

XL. Moral persons resident in Mexico who have accumulated income from dividends distributed by foreign residents in fiscal years Prior to 2014 and having to prove the proportional amounts tax on the income paid by foreign companies in the first and second corporate level for such income, they will be obliged to take the registration to refers to Article 5 of this Law. However, failure to comply with this obligation will not cause the loss of the right to credit provided for in that Article.

XLI. The Tax Administration Service, by means of general rules, will be able to provide administrative and verification facilities for the compliance with the tax obligations of the taxpayers dedicated exclusively to the land transportation of federal cargo, foreign passenger and tourism, up to an amount of 4% of its own revenues. In the case of such a facility, it may be established that an income tax shall be withheld from the amounts in question, without exceeding 17%.

XLII. These are territories for which the information declaration referred to in Title VI of the Income Tax Act and Title IV is to be filed. Chapter II of the Fiscal Code of the Federation, the following:

Anguilla

Antigua and Barbuda

Netherlands Antilles

Svalbard Archipelago

Aruba

Ascension

Barbados

Belize

Bermuda

Brunei Darussalam

Campione D' Italia

Commonwealth of Dominica

Commonwealth of the Bahamas

United Arab Emirates

Bahrain State

Kuwait State

State of Qatar

Independent State of Western Samoa

Commonwealth of Puerto Rico

Gibraltar

Grenada

Greenland

Guam

Hong Kong

Cayman Island

Christmas Island

Norfolk Island

San Pedro and Miguelon Island

Isle of Man

Qeshm Island

Azores Islands

Canary Islands

Cook Islands

Cocos or Kelling Islands

Islands of Guernsey, Jersey, Alderney, Great Sark Island, Herm, Little Sark, Brechou, Jethou Lihou (Channel Islands)

Falkland Islands

Pacific Islands

Solomon Islands

Turkish and Caicos Islands

British Virgin Islands

U.S. Virgin Islands of America

Kiribati

Labuan

Macau

Madeira

Malta

Montserrat

Nevis

Niue

Patau

Pitcairn

French Polynesia

Principality of Andorra

Principality of Liechtenstein

Principality of Monaco

Kingdom of Swaziland

Kingdom of Tonga

Hashemite Kingdom of Jordan

Republic of Albania

Republic of Angola

Republic of Cape Verde

Republic of Costa Rica

Republic of Cyprus

Republic of Djibouti

Republic of Guyana

Republic of Honduras

Republic of the Marshall Islands

Republic of Liberia

Republic of Maldives

Republic of Mauritius

Nauru Republic

Republic of Panama

Republic of Seychelles

Republic of Trinidad and Tobago

Republic of Tunisia

Republic of Vanuatu

Republic of Yemen

Eastern Republic of Uruguay

Democratic Socialist Republic of Sri Lanka

American Samoa

San Kitts

Saint Vincent and the Grenadines

Santa Elena

Saint Lucia

Serenisima Republic of San Marino

Sultania of Oman

Tokelau

Trieste

Tristan de Cunha

Tuvalu

Canary Special Zone

Free Zone Ostrava

XLIII.     The Federal Executive shall issue within a period of not more than 30 days from the entry into force of this Decree general rules in which economic incentives are established to facilitate the incorporation of tax payers. the scheme referred to in Section II of the Income Tax Act.

Incentives should include financing schemes through development banks, other institutions or individuals, for modernization of the operations of these contributors; flexibility in the rates for the use of public services according to the profits; programs of training, entrepreneurship and business growth or of the business, as well as of culture contributive.

EMPLOYMENT ALLOWANCE

DECIMAL item. The employment allowance is granted in the following terms:

I. Taxpayers who receive income from those provided for in the first paragraph or fraction I of Article 94 of the Income Tax Act, except those levied on the basis of seniority, withdrawal and severance payments or other separation payments, shall be subject to the employment allowance which shall be applied against the tax payable under Article 96 of the same Regulation. Law. The employment allowance shall be calculated on the basis of the income to be used as the basis for calculating the income tax corresponding to the calendar month concerned, the following:

TABLE

Subsidio for monthly employment

Limit Lower

Limit Top

Subsidio for Employment

0.01

1, 768.96

407.02

1, 768.97

1, 978.70

406.83

1, 978.71

2, 653.38

359.84

2, 653.39

3, 472.84

343.60

3, 472.85

3.537.87

310.29

3.537.88

4, 446.15

298.44

4, 446.16

4, 717.18

354.23

4, 717.19

5, 335.42

324.87

5, 335.43

6, 224.67

294.63

6, 224.68

7, 113.90

253.54

7, 113.91

7, 382.33

217.61

7, 382.34

0.00

In cases where the tax charged by the taxpayer that is obtained from the application of the tariff of article 96 of the Law of the Income Tax is less than the monthly employment allowance obtained in accordance with the table above, the retainer must give the taxpayer the difference that is obtained. The retainer may prove against the income tax on his or her charge or from the withheld to third parties the amounts he gives to the taxpayers in the terms of this paragraph. The revenue to be collected by the taxpayer from the employment allowance shall not be cumulable or shall form part of the calculation of the taxable amount of any other contribution for not being a remuneration for personal work. subordinate.

In cases where employers make payments for wages, which include periods of less than one month, to calculate the subsidy for the employment corresponding to each payment, they will divide the corresponding amounts to each of the columns of the table contained in this fraction, between 30. 4. The result thus obtained shall be multiplied by the number of days to which the payment period corresponds to determine the amount of the allowance for the employment corresponding to the worker for such payments.

When salary payments are for periods of less than one month, the amount of the allowance for employment that corresponds to the worker for all payments made in the month, may not exceed that corresponding to the table provided for in this fraction for the total amount received in the month in question.

When employers perform in a single display payments for wages that comprise two or more months, To calculate the subsidy for the employment corresponding to that payment, the amounts corresponding to each of the columns of the table contained in this fraction shall be multiplied by the number of months to which such payment corresponds.

When taxpayers provide services to two or more employers they will have to choose, before any make the first payment to them for the provision of personal services under the calendar year in question, to the employer who will give them the employment allowance, in which case they must communicate this situation to the In the case of the other employers, in order for them to no longer give them the employment allowance corresponding.

II. Persons who are required to carry out the annual income tax calculation referred to in the Article 97 of the Income Tax Act, in respect of the concepts referred to in the first paragraph or Article 94 (I) of the same Law, which have applied the employment allowance in the terms of the preceding fraction, shall be the following:

a) The annual tax will be determined by decreasing the entire income earned in a year of (i) a timetable for the concepts referred to in the first subparagraph or section I of Article 94 of the Income Tax Act, the local tax on wages and salaries in general for the provision of a subordinate personal service; would have retained in the calendar year, the result obtained will be applied to the Article 152 of the same Law. The tax charged by the taxpayer will be reduced by the sum of the amounts that the taxpayer has paid for the monthly employment allowance.

b) In the event that the tax determined pursuant to Article 152 of the Income Tax Act exceeds the sum of the amounts which, for the purposes of the monthly employment allowance, the taxpayer is responsible for, the retainer shall consider as tax payable by the taxpayer any surplus resulting from it. The amount of the provisional payments made shall be credited against the tax payable.

c) In case the tax determined pursuant to Article 152 of the Income Tax Act is less than the sum of the amounts which, for the purposes of the monthly employment allowance, the taxpayer has paid, will not have been imposed by the taxpayer nor will any amount be given to the taxpayer for the benefit of the employment.

The taxpayers referred to in the first paragraph and section I of article 94 of the Tax Law on the Income, who are obliged to submit annual declaration in the terms of the Law, they will prove against the tax of the year determined according to Article 152 of the same Law the amount that for the concept of subsidy for the employment was determined in accordance with the previous fraction during the fiscal year provided for in the tax proof that for such purposes is provided by the employer, without exceeding the amount of tax for the financial year determined in accordance with Article 152.

In the event that the taxpayer has had two or more employers during the financial year and any of them (a) the amount of the allowance for employment in the terms of the second subparagraph of the preceding subparagraph has been given to it; this amount shall be reduced from the amount of the deductions made in that financial year, up to the amount of the same.

III. Those who make payments to taxpayers who are entitled to the employment allowance can only credit against income tax on their income. (a) the amount to be paid to the taxpayer by that concept, where it complies with the following requirements:

a) Carry the records of the payments for the income received by the taxpayers referred to in the first paragraph or section I of Article 94 of the Income Tax Law, identifying in them, on an individual basis, each of the contributors to whom these payments are made.

b) Keep tax vouchers showing the amount of income paid to taxpayers, the income tax that, if any, is has retained and any differences in favour of the taxpayer on the basis of the employment allowance.

(c) Cumplan with the obligations provided for in Sections I, II and V of Article 99 of the Income Tax Act.

d) Conservancy the written submissions of the taxpayers in the terms of the sixth paragraph of section I of this precept, if any.

e) Submit to the authorized offices, no later than 15 February of each year, statement providing information of the amounts paid by the (a) the employment allowance in the preceding period, identifying for each worker the total income obtained during the financial year in question, which served as the basis for determining the allowance for employment, and the amount of the latter in accordance with the general rules which the Service of Tax Administration.

(f) Pay the social security contributions to your position by the workers who enjoy the employment allowance and those referred to in Article 93, X, of the Income Tax Act, that correspond to the income in question.

g) Log on the tax vouchers that you give to your workers, on the basis of the personal service income, the amount of the Employment allowance by identifying it expressly and separately.

h) Provide people who have provided personal services to them under the tax voucher of the amount of employment subsidy that is determined during the corresponding tax year.

i) Deliver, if applicable, cash the employment allowance, in the cases referred to in the second paragraph of section I of this precept.

ARTICLES TENTH TO TENTH THIRD. ..........

TRANSIENT

First. This Decree will enter into force on January 1, 2014.

Second. The Law on Income Tax, published in the Official Journal of the Federation on January 1, 2002; the Law of Business Tax on the Single Rate, and the Law on the Tax on Deposits, will be repealed at the entry into force of this Decree. in Cash.

Mexico, D.F., as of October 31, 2013.-Sen. Raul Cervantes Andrade, President.-Dip. Ricardo Anaya Cortes, President.-Sen. Lilia Guadalupe Merodio Reza, Secretary.-Dip. Magdalena del Socorro Núñez Monreal, Secretariat.-Rubicas."

In compliance with the provisions of Article 89 (I) of the Political Constitution of the United Mexican States, and for its due publication and observance, I request this Decree in the Residence of the Federal Executive Branch, in Mexico City, Federal District, to six December of two thousand thirteen.- Enrique Peña Nieto.-Rubrias.-The Secretary of the Interior, Miguel Angel Osorio Chong.-Rubrias.