IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 19 Apr 2016 | Removal date: open ended
Still in force

Tax or social insurance relief

On April 18, 2016, the Mexican Government passed a Decree granting new deduction limits to taxpayers engaged in hydrocarbons extraction activities. In the previous legislation (the Hydrocarbon Revenue Law), taxpayers could only deduct from the right for the shared utility costs, expenses and investments with a maximum value of 12.50% of the annual value of the hydrocarbon produced. The new incentive provides taxpayers with a new option to calculate the deductible amount between 8.30 USD and 6.10 USD per barrel of crude oil extracted from land areas and maritime areas with a depth of fewer than 500 meters respectively or the amounts established in the previous legislation.

With this new legislation, the Government aims to guarantee the continuity of investments related to the exploitation and exploration of hydrocarbons.

 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

120 Crude petroleum & natural gas
2711 Petroleum gases and other gaseous hydrocarbons.
271111 Natural gas
271121 Natural gas
334 Petroleum gases & other gaseous hydrocarbons, except natural gas
2711 Petroleum gases and other gaseous hydrocarbons.
271112 Propane
271119 Other

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