ANNOUNCED AS TEMPORARYYes
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.
⚑ Please report this page in case you detect an inaccuracy in its content.