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 fideicomtts, 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. 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 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. VI. IV. IV. Tax rate The corporate income tax rate remains at 30%. When two or more contributors are co-owners of a negotiation, the provisions of Article 108 of this Law will be in place. 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. To determine the amount of the investment contribution to be withdrawn, the result obtained according to the fraction I will be multiplied by the sum of the The refund made by the borrower for an amount equal to the property rights of the securities received on loan. 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%. in question. 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. That in no case more than 80% of your voting shares are owned by another or other companies, unless such companies are resident. Such provisional payments shall not be regarded as the assets of establishments located abroad. The results thus obtained will be added or subtracted, as the case may be. 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. 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. FROM FISCAL STIMULUS TO NATIONAL FILM AND THEATRICAL PRODUCTION AND DISTRIBUTION. 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. 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. Airplane*. For the purposes of this fraction, a source of wealth shall be deemed to exist on national territory, where the resident abroad has assets 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. 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. 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. 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. 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. VI. Article 109. 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. Dealing with income from mediations subject to preferential tax regimes that obtain residents abroad, the source of wealth is considered to be in territory. 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. Civil societies or associations engaged in scientific or technological research that are registered in the National Register of They will not be able to pay the tax in the terms of this Section: I. f) Educational, cultural, artistic, scientific and technological promotion and promotion. Chapter. Article 31. Article 120. 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. 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. Trying to reduce the capital of moral people, the calculation of the distributed utility per action determined according to Article 78 of this Law, It is understood that, among others, they are income in the terms of this Chapter: I. 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. update and up to the month in which the contribution or reimbursement is paid, as appropriate. Rate per mile. 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. 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. 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. In the case of real estate, the updated cost shall be at least 10% of the amount of the disposal in question. 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. technology transfer, duration and degree of protection. 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. 7% in the manufacture of pulp, paper and similar products; in the extraction and processing of crude oil and natural gas. 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. Where persons are not required to make an annual declaration, the withholding tax shall be considered as a final payment. 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. 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. 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. 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. 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 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. The General Congress of the United Mexican States, decrees: INCOME TAX LAW (Published in the Official Daily of the Federal Government for January 1st. I. c) In the case of use, enjoyment, or alienation, of tangible goods, such as the physical characteristics, quality, and availability of the good. 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. 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. 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. b) Regardless of the procedure chosen to determine the tax resulting from the deconsolidation referred to in point (a) of this fraction, when 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. 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. In order to determine the proportion referred to in this paragraph, investments in immovable property not affected by the preponderant activity shall be excluded. 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. 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. XIII. 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. through which the taxpayer made the transactions that generate income, for the purposes of determining the lower income tax referred to in this article. 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. multiple object. 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. 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 VI. For these purposes, the amount of the distributed utility shall include the income tax corresponding to it. 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. PDF Transfer Pricing Country Profile- Mexico - OECD VI. 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. III. 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. PDF Department of The Treasury Internal Revenue Service Washington, D.c. 20224 IV. 1. Financing entities belonging to foreign states, provided they are the effective beneficiaries of interest. Proportional amount of corporate income tax paid abroad referred to in the fourth paragraph of this article. 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. 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. Article 9. b) Keep tax vouchers showing the amount of income paid to taxpayers, the income tax that, if any, is 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. The resulting tax shall be added to the tax calculated in accordance with the preceding fraction. 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. 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 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 terms of Article 53 of the Income Tax Act that is repealed. 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. 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. b) Information about the functions or activities, assets used, and risks assumed by the taxpayer for each type of operation. VI. Article 44. 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. 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 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. 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 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. 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. 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. 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. Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2023-24 income year? IX. accounts in credit institutions or exchange houses of the taxpayer itself.