Doing Business

Doing Business in Mexico 2015

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203 Doing Business in Mexico 2015 Appendix I Corporate tax rates I Corporate tax rates General rate The tax rate for corporate taxpayers is 30%. Special industry rates Two special regimes will be in place for the primary sector and for truck freight service, which, generally speaking, continue to provide the same benefits applicable up to 2013 with certain modifications, principally: 1. Coordinated entities managing and operating fixed assets and land directly or indirectly related to freight or passenger transportation may continue to comply with their tax obligations through the coordinating entity, on the basis of the rules for individuals engaged in business activities. The tax authorities may grant a simplified approach to support deductions of up to 4% of their income, and allow a compliance with withholding obligations by applying a tax not exceeding 17% from amounts disbursed. 2. Agricultural, cattle breeding, forestry and fishing activities, applicable to taxpayers engaged exclusively in that sector, with tax determined as follows: a. Entities will have an exemption on an amount equivalent to 20 times the general minimum wage for the geographic area corresponding to the taxpayer, calculated per year for each member, not to exceed 200 times the general minimum wage for the Federal District. b. Individuals will have an exemption of an amount equivalent to 40 times the general minimum wage for the geographic area corresponding to the taxpayer, calculated for the year. c. Entities and individuals with income of up to an amount equivalent to 423 times the general minimum wage for the geographic area of the taxpayer, calculated for the year, will have the aforementioned exemptions, as well as a reduction of tax on the excess, i.e., 40% for individuals and 30% for entities, that is to say, they will apply the effective tax rate of 21%. d. Individuals and entities with income exceeding an amount equivalent to 423 times the general minimum wage for the geographic area of the taxpayer, calculated for the year, apply the above-mentioned exemption and tax deduction and must determine and pay tax at the rate of 30% or at the rate applicable for calculating tax payable by individuals.

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