Mexico City, August 27 2024
Yesterday, it was published in the Official Gazette of the Federation the Decree granting tax benefits to the indicated taxpayers.
To promote the country’s hydrocarbon exploration and extraction activities, the Federal Executive deemed it necessary to provide tax incentives to benefit assignees obligated to pay shared profit and hydrocarbon extraction fees. These incentives apply to the shared profit fee for May, June, and July 2024, and to the hydrocarbon extraction fee for June and July 2024, under the following terms:
- A tax incentive is granted to assignees required to make monthly provisional payments towards the shared profit fee for May, June, and July 2024.
The incentive includes a tax credit equivalent to 100% of the shared profit fee in May, June, and July 2024. This credit must be applied against the same cost due for those months as part of the annual fee for the fiscal year 2024.
- A tax incentive is granted to assignees required to make monthly payments towards the hydrocarbon extraction fee for June and July 2024.
The incentive includes a tax credit equivalent to 100% of the hydrocarbon extraction fee in June and July 2024. This credit must be applied against the same cost due for those months.
- These tax incentives do not constitute taxable income for fiscal purposes and will not result in any refunds.
- The Tax Administration Service is authorized to issue the necessary general provisions for the application of this decree.
This Decree comes into force today August 27, 2024.
Sincerely,
Gerardo Nieto
nieto@basham.com.mx
Gil Zenteno
zenteno@basham.com.mx
Alejandro Barrera
barrera@basham.com.mx
Víctor Barajas
mbarajas@basham.com.mx
Francisco Matus
fmatus@basham.com.mx
Norberto Ruiz
nruiz@basham.com.mx
