Federal New-Car Tax Law

Original Language Title: Ley Federal del Impuesto sobre Automóviles Nuevos

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Federal New Car Tax Law

FEDERAL LAW ON NEW CAR TAX

Official Journal of the Federation on 30 December 1996

Last reform published in the DOF on December 27, 2006

Amounts updated by Miscelanea Resolution Fiscal DOF 13-01-2015

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

ERNESTO ZEDILLO PONCE DE LEÓN, 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 CONGRESS OF THE MEXICAN UNITED STATES, D E C R E T A:

LAW THAT ESTABLISHES AND MODIFIES VARIOUS TAX LAWS

Articles First to Tenth Fourth.-..........

Article Tenth Fifth.- The following is issued:

FEDERAL LAW ON NEW CAR TAX

Article 1o.- They are required to pay the new car tax set out in this Act, the natural persons and the moral persons who perform the following acts:

I.     They have new cars. It is understood by new car that it is first employed by the consumer by the manufacturer, assembler, authorized dealer or dealer in the field of vehicles.

II.   The automobile country is ultimately important, provided that it is different from the manufacturer, assembler, authorized dealer or dealer in the field of vehicles.

For the purposes of the above fractions, the imported cars for which the tax established in this Law is caused, are the ones that correspond to the model year after application of the Law, to the model year in which the import is carried out, or to the previous 10 years.

Article 2o. The new car tax will be calculated by applying the rate or rate set out in Article 3o. of this Law, as applicable, to the price of the sale of the automobile to the consumer by the manufacturer, assembler, authorized distributors or merchants in the field of vehicles, including the optional equipment, common or of luxury, without diminishing the amount of discounts, rebates, or bonuses.

Dealing with armoured cars, except trucks, the tariff referred to above shall apply to the disposal price referred to in the preceding paragraph, without including value of the material used for the shielding. In no case will the tax that has to be paid for these vehicles be less than the one that would have to be paid for the higher price version of a car without shielding the same model and year. Where there is no unshielded vehicle corresponding to the same model, year and version of the armoured car, the tax for the latter shall be the amount to be applied to the total value of the vehicle, in the abovementioned terms, the tariff set out in the precept cited in the preceding paragraph, multiplying the result by the factor of 0.80.

It shall not be part of the price referred to in this article, the value added tax that is caused by such disposal.

In the case of definitive import cars, including those destined to remain definitively in the northern border strip of the country and in the states of Baja California, Baja California Sur and the partial region of the State of Sonora, the tax will be calculated by applying the tariff set in this Law, to the price of disposal referred to in the first paragraph of this article, added with the tax general import and with the amount of the contributions to be paid on the occasion of the import, with the exception of value added tax.

The value referred to in the preceding paragraph shall apply even if the general import tax is not to be paid for the automobile in question.

In the case of vehicles referred to in Part II of Article 3o. of this Law, the tax shall be calculated by applying the rate indicated in that fraction to the price of the sale to the consumer by the manufacturer, assembler, authorized distributor or importer.

DOF Reform 26-12-2005: Defeat article then penultimate paragraph (formerly reformed by DOF 31-12-2003)

Article 3o.- For the purposes of Article 2o. of this Law will be the following:

I.- For cars with a capacity of up to 15 passengers, at the disposal price of the car in question, the following applies:

RATE

Limit Lower

Limit Top

Cuota fixed

Percent to be applied to the lower Limit

$

$

$

%

0.01

75.098.87

0.00

2

75.098.88

90,118.61

1,501.96

5

90.118.62

105,138.43

2,252.97

10

105,138.44

135,177.89

3,754.94

15

135,177.90

ON FORWARD

8,260.86

17

If the car price is greater than $207,373.49, it will be reduced from the amount of the given tax, the amount that will result from applying 7% on the difference between the unit price and $207,373.49.

The amounts corresponding to each of the tranches of the tariff of this article, as well as those contained in the preceding paragraph, shall be updated in the month of January of each year, with the updating factor corresponding to the period from November of the penultimate year to the month of the immediate November preceding the month in which the update is made, the same as that obtained from compliance with Article 17-A of the Tax Code of the Federation. The Secretariat of Finance and Public Credit will publish the update factor in the Official Journal of the Federation during the month of December of each year.

II.- Treating trucks with load capacity of up to 4,250 kilograms, including panel types with maximum capacity of three passengers and trailers and housing type trailers, the disposal price of the vehicle in question shall be applied to the 5% rate.

Article 4o.- The tax will be calculated for tax years, except in the case of imports as referred to in Article 10 of this Act.

The taxpayers shall make provisional payments by day 17 of each of the months of the financial year, by means of a declaration which they shall submit to the authorised offices in respect of the made in the previous immediate month.

The tax on the financial year, deducted from provisional payments, shall be paid by means of a declaration to be filed with the authorised offices within three months of the end of the same financial year.

If a taxpayer has one or more establishments located in a federal entity other than that of the tax domicile of the parent or principal establishment, it must present in each of the entities (a) a statement of the following establishments, a monthly declaration of provisional payment and a declaration of the financial year, for the operations corresponding to those establishments, which must be submitted in the offices approved by the competent tax authority. In addition, the parent or principal office shall submit its interim payment declaration and the statement of the financial year for the transactions it carries out in the institution in which it is located.

Article 5o.- For the purposes of this Act, it is understood by:

a).- Cars, transport of up to fifteen passengers, trucks with load capacity up to 4,250 kilograms including panel type, as well as trailers and semi-trailers of type housing.

b).- Northern border strip of the country, between the international dividing line with the United States of America and the parallel line at a distance of 20 kilometers to the interior of the country, in the stretch between the limit of the partial region of the State of Sonora and the Gulf of Mexico, as well as the Border Municipality of Cananea, in the State of Sonora.

c).- Partial region of the State of Sonora, to the extent of the following limits: to the north, the international dividing line from the river Colorado to the point located on that line to 10 kilometers to the west of Sonoita, from that point, a straight line to the east of Puerto Peñasco; from there, following the riverbed of that river, to the north until finding the international dividing line.

d) Traders in the field of vehicles, to natural and moral persons whose activity is the disposal of new or used vehicles.

Article 6o. For the purposes of this Law, it is understood by alienation, in addition to what is stated in the Tax Code of the Federation, the incorporation of the automobile the fixed assets of the car manufacturers, assemblers or importers, including those of authorised dealers and dealers in the field of vehicles, or those for sale for more than one year, except in the case of: motor vehicles for which the tax to which this Law has already been paid has already been paid. In such cases, the tax shall be calculated in accordance with Article 2. of this Act, as applicable.

It is understood that cars are incorporated into the firm's fixed assets when used for the development of the taxpayer's activities.

Article 7o.- For the purposes of this Law it is considered an import that has the definitive character in the terms of the customs legislation, except in cases where the customs legislation has already been paid tax established in this Act.

Article 8o.- The tax set forth in this Act will not be paid, in the following cases:

I.- In the export of automobiles with a definitive character, in the terms of customs legislation.

II. In the sale to the consumer by the manufacturer, assembler, authorized dealer or dealer in the field of vehicles, whose price of disposal, including the optional equipment, common or luxury, without decreasing the amount of discounts, rebates or bonuses do not exceed the amount of $217,231.38. The value added tax will not be considered in the above price.

Dealing with automobiles whose disposal price is between: $217,231.39 and up to $275,159.75, the exemption will be fifty percent (a) the payment of the tax established by this Law. The provisions of this paragraph and the preceding paragraph shall also apply to the importation of automobiles.

The price referred to in the preceding paragraph shall be updated in the month of January of each year, applying the factor corresponding to the period from December of the penultimate year to the month The following shall be made immediately prior to the date on which the update is made, as shall be obtained in accordance with Article 17-A of the Fiscal Code of the Federation. The Secretariat of Finance and Public Credit will publish the update factor in the Official Journal of the Federation within the first three days of January each year.

III.- On the importation of vehicles in relief, in accordance with Article 62, fraction I, of the Customs Law, or with international treaties or agreements signed by Mexico, provided that the requirements and conditions specified by the Secretariat of Finance and Public Credit are met by means of general rules.

Article 9o.- An automobile is considered to be involved at the time any of the following assumptions are made:

I.- Be sent to the acquirer. In the absence of shipment, when the car is physically delivered.

Il.- The price is partially or fully paid.

Ill.- The proof of the disposal is issued.

IV.- When entering the fixed asset or after the one-year period referred to in the first paragraph of the article 6o. of this Law.

Article 10. Dealing with cars imported definitively by persons other than the manufacturer, the assembler, their authorized distributors or the traders in the field of vehicles, the tax referred to in this Law, shall be paid at the customs office by declaration, together with the general import tax, including where the payment of the second is deferred by virtue of being cars in the tax warehouse in general warehouse warehouses. Vehicles may not be removed from customs, tax or tax grounds, without prior payment being made in accordance with this Law.

Article 11.- No refund or compensation shall be made for the tax set out in this Law, even if the car is returned to the enajenante.

For the purposes of this Act, no new cars will be considered, those for which the tax set out in this Law has already been paid, including those that are return to the enajenante.

The manufacturers, assemblers, authorized dealers of cars or dealers in the field of vehicles, will not make the separation of the amount of this tax in the document that will protect the disposal.

Article 12.- When taxpayers have establishments in two or more Federative Entities, they must keep the accounting records necessary to inform the Secretariat of Finance and Credit Public, in the statement of the exercise, of the sales made in each federal entity.

Article 13.- New car manufacturers, assemblers or authorized dealers, as well as those who import cars to stay in shape In the northern border strip of the country and in the states of Baja California, Baja California Sur and the partial region of the State of Sonora, they will have to include in the document that will cover the corresponding disposal, the vehicle key that corresponds to the enajenada version. The Secretariat of Finance and Public Credit will establish the way in which the key is to be integrated, by means of general rules.

The value of the vehicle shall be expressed in the relevant national currency voucher. "

Article 14. A New Car Tax Compensation Fund is created to compensate the entities attached to the National System of Fiscal Coordination and to have concluded with the Federation Convention of administrative collaboration in the field of the new car tax, the reduction in revenue resulting from the extension of the exemption from this tax, which is granted by Article Eighth of the Decree laying down the conditions for the definitive importation of used motor vehicles, published in the Official Journal of the Federation of 22 August 2005, equivalent to $1,589,492,298.00.

Monthly will be distributed the amount that results from dividing the amount set in the first paragraph of this article between 12 to the Federative Entities, according to to the distribution coefficients of the following table:

Entity

Coefficient

Hot-Agusts

0.010201

Low California

0.024732

Baja California Sur

0.004627

Campeche

0.005038

Coahuila

0.032702

Colima

0.005974

Chiapas

0.015838

Chihuahua

0.033976

District Federal

0.229286

Durango

0.007617

Guanajuato

0.032040

Guerrero

0.008630

Hidalgo

0.009030

Jalisco

0.078613

Mexico

0.108289

Michoacán

0.028170

Morelos

0.009869

Nayarit

0.003937

New Leon

0.070119

Oaxaca

0.012463

Puebla

0.044415

Queretaro

0.014387

Quintana Roo

0.0021638

San Luis Potosi

0.017531

Sinaloa

0.027518

Sonora

0.026867

Tabasco

0.016162

Tamaulipas

0.040972

Tlaxcala

0.003656

Veracruz

0.037974

Yucatan

0.013333

Zacatecas

0.004396

Total 1.000000

The Federal Executive, through the Secretariat of Finance and Public Credit, will distribute the resources of the fund referred to in the second paragraph of this article, within the first 25 days of each month and shall be considered as a final payment. The federative entity concerned must distribute at least 20% of the resources it receives from this fund to the municipalities of the entity, which shall be distributed among the latter, in the manner in which the respective legislature determines.

The amount of the fund referred to in the first paragraph of this article will be determined annually in the Federation's Government Budget, which will be updated every year. year, applying the factor corresponding to the period from July of the last year to the month of July immediately preceding the month in which the update is made, the same as shall be obtained in accordance with Article 17-A of the Tax Code of the Federation.

TRANSIENT

First.- This Law will take effect from 1o. of January 1997.

Second.- Cars that are in the process of being imported at the date of entry into force of this Law, will have to pay the tax established in the same in the terms of Article 10 of this Law. Law.

Third.- New cars of national manufacture of model years 1996 and earlier, as well as vehicles imported by commercial enterprises that have registered with the Secretariat of Trade and Industrial Development as a commercial company to import used cars, which will be used for the first time to the consumer as from the entry into force of this Law, will cause the tax according to the tariff or rate corresponding to the with the same.

Fourth.- Federative entities that conclude an agreement of administrative collaboration with the Federation regarding the tax on new cars, will be able to receive from the Federation the collection which is obtained in accordance with Article 10 of this Law, provided that the federative entity concerned accredit that the registration of the imported motor vehicle was authorised in its entity in the final manner referred to in that provision and that it has been (a) for the first time the movement plates for such a vehicle.

The collection referred to in the preceding paragraph shall be assigned in accordance with the rules to be established by the Secretariat of Finance and Public Credit and the Federal Entities.

Fifth.- For the purposes of the provisions of this Law, during the year of 1997, taxpayers will multiply by the factor of 0.4 the amount of new car tax resulting from the compliance with the provisions of Article 3o. of this Law. The result will be the tax payable.

Sixth.- For the purposes of this Law, during the year of 1998, taxpayers will multiply by the factor of 0.7 the amount of new car tax that will result from the compliance with the provisions of Article 3o. of this Law. The result will be the tax payable.

Seventh.- As from the entry into force of this Law the provisions that are contrary to this Law are without effect.

Articles Tenth Sixth to Twenty-one.- ..........