2002 FISCAL
AMENDMENTS
CONTENTS
2002 ECONOMICAL PERSPECTIVES ................................................................................................... 6
Gross
Domestic Product (PIB) ................................................................................................................... 8
Inflation
...................................................................................................................................................... 9
Rate of Exchange ........................................................................................................................................ 9
Interest Rate ................................................................................................................................................ 9
Oil income ................................................................................................................................................... 9
EXECUTIVE SUMMARY OF FISCAL
AMENDMENTS FOR 2002
IVA (IVA) ................................................................................................................................................. 11
ISR (ISR) (INCOME TAX)
....................................................................................................................... 12
General
remarks ......................................................................................................................................... 14
Federal revenue
.......................................................................................................................................... 15
Extension
for payment of fiscal credits ...................................................................................................... 15
Fiscal
incentives ......................................................................................................................................... 15
TITLE I GENERAL PROVISIONS
Permanent
Establishment .......................................................................................................................... 24
System
for the “maquila” industry ............................................................................................................ 25
International
treaties ................................................................................................................................. 25
Transfer
of property by merger or split .................................................................................................... 26
Creditable
tax ............................................................................................................................................ 26
Profit-Sharing
associations
....................................................................................................................... 26
Definition
.................................................................................................................................................. 26
TITLE II CORPORATIONS
Tax
rate
..................................................................................................................................................... 27
Settlement
in payment
.............................................................................................................................. 27
Distribution
of dividends
.......................................................................................................................... 27
Capital
reduction ....................................................................................................................................... 29
Settlement
(Liquidation)
.......................................................................................................................... 30
Provisional
payments................................................................................................................................. 30
Adjustment
from inflation ......................................................................................................................... 31
Cumulative
income .................................................................................................................................... 31
Gain
on sale of shares ................................................................................................................................ 32
Corporate
re-structuring ............................................................................................................................ 33
IMSS dues for
shares
................................................................................................................................ 34
Interest
and annual adjustments for inflation ............................................................................................ 34
Deduction
Requirements
General
requirements
................................................................................................................................ 34
Payments
made by checks ......................................................................................................................... 34
One-time
deductions ................................................................................................................................. 35
Alcoholic
Beverages ................................................................................................................................. 35
Interest
...................................................................................................................................................... 35
Payments
for natural persons and corporate
entities simplified system .................................................. 35
Social
welfare benefits .............................................................................................................................. 36
Irrecoverable
credits .................................................................................................................................. 36
Wages and
salaries .................................................................................................................................... 37
Non-deductible
expenses
Travel expenses ........................................................................................................................................ 37
Automobile
rentals .................................................................................................................................... 37
PTU .......................................................................................................................................................... 37
Derivative
financial transactions
............................................................................................................... 38
Dining
in restaurants
................................................................................................................................. 38
Reserve
for pension and retirement funds ................................................................................................ 38
Contributions
to training, investigation and Technology funds
............................................................... 39
Investments
Immediate
deduction ................................................................................................................................ 39
Automobiles
............................................................................................................................................. 40
Applicable
rates
........................................................................................................................................ 40
Losses
resulting from Acts of God or force majeure
................................................................................ 40
Foreign
affiliates
....................................................................................................................................... 41
Other deductions
....................................................................................................................................... 41
Yields
on inversions
.................................................................................................................................. 42
Credit
institutions
...................................................................................................................................... 42
Insurance
institutions ................................................................................................................................ 43
Fiscal
consolidation
.................................................................................................................................. 43
New simplified system ............................................................................................................................. 44
Taxpayers of the system
........................................................................................................................... 45
Optional system
........................................................................................................................................ 46
Obligations
............................................................................................................................................... 46
Provisional payments
................................................................................................................................ 47
Annual tax
................................................................................................................................................ 47
Members
of coordinates
.......................................................................................................................... 48
Facilities for land
transportation
............................................................................................................... 48
Termination of the previous simplifies system ........................................................................................ 49
TITLE III NON-PROFIT CORPORATE ENTITIES ............................................................. 50
Tax returns
................................................................................................................................................ 51
Mutual funds ............................................................................................................................................. 51
TITLE IV ............................................................................................................................................. 52
General provisions
.................................................................................................................................... 52
Investments in tax heavens
....................................................................................................................... 53
Presumed income
...................................................................................................................................... 53
Indemnification of risks and illness
.......................................................................................................... 53
Social welfare
........................................................................................................................................... 53
Saving funds
............................................................................................................................................. 54
Other payments from labor relation
......................................................................................................... 54
Sale of homes
........................................................................................................................................... 54
Interest
..................................................................................................................................................... 54
Indemnity for insurances
.......................................................................................................................... 55
Donations
.................................................................................................................................................. 55
Sale of stock
.............................................................................................................................................. 55
Agriculture, livestock, forestry and fishing activities
............................................................................... 56
Copyrights
................................................................................................................................................. 56
Sale by settlement in payments
................................................................................................................. 56
Business
or professional activities
............................................................................................................ 57
Tax
return-exempt income
........................................................................................................................ 57
Chapter I Wages
and Salaries
Income in services ............................................................................................................................. 57
Payment of withholdings ................................................................................................................... 58
Calculation procedure and tariffs ...................................................................................................... 58
Workers obligations .......................................................................................................................... 59
Employers obligations ....................................................................................................................... 59
Credit to salary ................................................................................................................................... 59
Chapter II Business and
professional activities
Income
................................................................................................................................................ 60
Time for accumulating income
.......................................................................................................... 60
Deductions
......................................................................................................................................... 61
Investments
........................................................................................................................................ 61
Requirements for the deductions ....................................................................................................... 62
Provisional payments
........................................................................................................................ 62
Adjustment to provisional payments ................................................................................................. 63
Fiscal losses ...................................................................................................................................... 63
Calculation of the annual tax ............................................................................................................. 64
Crediting of ISR against IMPAC
...................................................................................................... 64
Obligationa
....................................................................................................................................... 64
Intermediate system
Subjects
............................................................................................................................................. 65
Obligation
........................................................................................................................................ 65
Investments
....................................................................................................................................... 66
Small taxpayer system
Subjects.............................................................................................................................................. 66
Rate
.................................................................................................................................................... 66
Obligations ....................................................................................................................................... 66
Aspects to be considered in regard to the
system as the result of the amendment ............................ 67
Chapter III Income from
lease
General Aspects
................................................................................................................................ 67
Income
............................................................................................................................................... 67
Deductions ........................................................................................................................................ 68
Provisional payments ........................................................................................................................ 68
Informative return
............................................................................................................................. 68
Chapter IV Sale of
Commodities
General Aspects
................................................................................................................................. 69
Fiscal cost of shares of mutual funds
................................................................................................. 69
Deductible losses
................................................................................................................................ 69
Informative return of notaries or brokers
............................................................................................ 69
Chapter V Acquisition of
properties
General Aspects ................................................................................................................................. 70
Chapter
VI Interest
General Aspects ................................................................................................................................. 70
Concept of Interest
............................................................................................................................ 70
Accrual .............................................................................................................................................. 70
Loss in the inflationary adjustment
................................................................................................... 71
Interest paid by insurance companies
................................................................................................ 71
Provisional payments on interest
....................................................................................................... 72
Obligations
........................................................................................................................................ 73
Withholding
....................................................................................................................................... 74
Payer obligations ............................................................................................................................... 75
Chapter VIII Income from
dividends.
Acumulation
..................................................................................................................................... 75
Crediting
............................................................................................................................................ 75
Constructive dividends ...................................................................................................................... 76
Chapter IX Other income
General aspects
................................................................................................................................. 76
Interest
.............................................................................................................................................. 76
Estimate of income
........................................................................................................................... 76
Income of insurance companies
......................................................................................................... 76
Income from royalties ........................................................................................................................ 76
Income from retirement plans
............................................................................................................ 76
Informative tax return
........................................................................................................................ 77
Derivative financial transactions
....................................................................................................... 77
Chapter X Requirements for
Deductions
Non-deductible expenses
.................................................................................................................. 78
Automobiles
..................................................................................................................................... 78
Salaries, commissions and fees
........................................................................................................ 78
Consumption at bars and restaurants
................................................................................................ 78
Chapter XI Annual Return
Filing date ......................................................................................................................................... 78
Personal deductions
.......................................................................................................................... 78
Mortgage interest
.............................................................................................................................. 78
Voluntary contributions
.................................................................................................................... 80
Insurance premiums .......................................................................................................................... 80
Calculation of the annual tax
............................................................................................................ 80
TITLE V FOREIGN
RESIDENTS WITH INCOME DERIVED FROM A SOURCE
OF
WEALTH LOCATED IN NATIONAL TERRITORY
Parties
subject to the tax
........................................................................................................................... 81
Income
from fees ...................................................................................................................................... 81
Payments
to members of the board, examiners, etc. ................................................................................ 82
Income
from the lease of real properties .................................................................................................. 82
Income
from the lease of personal properties .......................................................................................... 82
Time-shared
tourist service agreements ................................................................................................... 82
Income
from the sale of real properties .................................................................................................... 82
Income from the sale of shares
................................................................................................................. 82
Restructuring of
companies that form part of the same
group ................................................................ 83
Ingresos por operaciones de sustitución de
deuda pública por capital
.................................................... 84
Income from derivative financial
transactions payable in cash ................................................................ 84
Income from dividends............................................................................................................................. 84
Income from interest ................................................................................................................................ 84
Royalties
................................................................................................................................................... 85
Income from construction
services
.......................................................................................................... 86
Premiums
................................................................................................................................................. 86
Income of artists and athletes
.................................................................................................................... 86
TITLE VI TERRITORIES WITH
PREFERENTIAL FISCAL SYSTEMS
AND
MULTINATIONAL COMPANIES
Territories
with preferential fiscal systems ............................................................................................... 86
Multinational companies .......................................................................................................................... 88
TAX THAT SUBSTITUTES CREDIT TO SALARY
Parties
subject to payment ......................................................................................................................... 88
Rate
.......................................................................................................................................................... 89
Annual tax
................................................................................................................................................. 89
Provisional
payments ................................................................................................................................ 89
Exemption
of the tax
................................................................................................................................. 89
Concept
of a single corporate entity ......................................................................................................... 90
LAW OF THE SPECIAL TAX ON PRODUCTION AND SERVICES
New
activities taxed
................................................................................................................................. 91
Levying
of the tax
..................................................................................................................................... 91
Crediting
................................................................................................................................................... 91
General
Rules
............................................................................................................................................ 92
Exports ..................................................................................................................................................... 92
Alcoholic
beverages
................................................................................................................................. 92
Soft
drinks and hydrating beverages
Parties
subject to the tax ........................................................................................................................... 93
Exempt
activities ...................................................................................................................................... 93
Exempt
inventories
.................................................................................................................................. 93