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Corporate & Business
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Tax Benefits May 2009

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Fiscal benefits offered by the Executive Power as a result of the sanitary contingency caused by influenza AH1N1?

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The epidemic of ?influenza AH1N1? that is currently present in Mexico has brought a significant impact in the national economy, mainly due to the encountered paralysis in the productive activities. As a result, in order to diminish the negative impact in the economy and seeking to contribute in the reactivation of the national economy, the Executive Power published last May 7^th, 2009 on the Official Gazette a Decree in use of the authority given to him in the Federal Fiscal Code, to condone or to exempt, totally or partially, the payment of contributions and their accessories, due to which the President has decided to offer the following fiscal benefits:

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1. During the fiscal year of 2009, the taxpayers of the Unique Rate Business Tax (IETU) will be allowed that, when a surplus of such contribution exists as a result of the provisional payments previously done, such surplus can be applied in the provisional payment of the Income Tax. Such designation will be considered as Income Tax effectively paid.
2. The Employers will be exempted for a quantity equal to 20% monthly of the payment of the labor obligations regarding the quotas established in the Social Security Law that are caused during May and June 2009. This quantity cannot be more than $17,500.00 Mexican pesos per month. The benefit will therefore be of a maximum of $35,000.00 Mexican pesos during the two months specified.
3. During the months of May, June and July 2009, the shipping companies responsible for the tourist maritime embarkations, as well as the companies dedicated to the air transportation of people, will be exempted for a quantity equal to 50% off regarding the payment of the rights for extraordinary migratory services and port administration as well as for the payment regarding the rights of use of Mexican Air Space respectively.

Finally, the Executive Power has offered a fiscal subsidy to the States that exempt the taxpayers of the sectors of hotels, restaurants, and services from the Payroll Tax and the Lodging Tax giving such States a reimbursement equivalent to 25% of the loss of the incomes that such measures represent during the months of May, June and July 2009.

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For additional information, you may contact any of the members of our Corporate & Business Practice Team.