Newsletter
Corporate & Business
�

Car Tenancy Tax Benefit Jun 2010

Car Tenancy Tax Benefit

�

In 2009, new automobile sales suffered a 26.3 % loss caused by the worldwide crisis that affected automobile industry.

This economic behavior has affected the automobile industry as well as the family economy by not being able to satisfy their transportation needs. Even though the Federal Government implemented ?The Automobile Renovation Program? with a two hundred and fifty million pesos fund and thirteen thousand four hundred and twenty one units sold, it is necessary to adopt additional measurements to improve the economic recovery of the automobile section.

Through Decree published in the Official Gazette in June 25th, 2010, the Executive ordered a tax benefit to manufacturers, assemblers, distributors and traders to opt paying car tenancy tax of new vehicles bought during this Decree validity for natural persons, which value has to be less than two hundred and fifty thousand pesos.

This benefit consists in a tax credit equivalent to the amount of the car tenancy tax, either federal or local, paid in the same year of the new car purchase.

For vehicles over two hundred and fifty thousand pesos, the limit benefit will be the same as the car tenancy tax that corresponds to the new car value.

For legal persons, the benefit consists on a tax credit obtained by the difference of the car tenancy tax and the deductible amount of the expenditure according the Law of Income Tax.

�

�

�

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