This past November 13, 2023, the Decree issuing the Federal Revenue Law ("FRL") for fiscal year 2024 was published in the Official Gazette of the Federation ("OGF"), as well as the Decree amending, adding and revoking several provisions of the Federal Law of Fees ("FLF"). It should be noted that this year it was announced that there would be no amendments to the Miscellaneous Tax Resolution, so there will be no amendments to: (i) the Federal Tax Code ("FTC"); (ii) the Income Tax Law ("ITL"); (iii) the Value Added Tax Law ("VATL"); and (iv) the Special Tax on Production and Services Law ("STPSL").
Likewise, on December 26, 2023, the Decree amending, adding and revoking several provisions of the Mexico City Tax Code (“MCTC”) was published in the Official Gazette of Mexico City, as well as the decree enacting the Mexico City Revenue Law for the fiscal year 2024.
In this document you will find a summary of the amendments and additions to the provisions contained in the FRL, FLF, Mexico City Tax Code and the Mexico City Revenue Law for the fiscal year 2024.
- Federal Revenue Law
Surcharge rate for the extension for the payment of tax credits: It is maintained at 0.98% per month on the unpaid balances (article. 8, section I, FRL).
Surcharge rates to be applied on the unpaid balances and periods involved, when payment in installments is authorized in terms of the Federal Fiscal Code: (i) 26% per month for installment payments in installments of up to 12 months; (ii) 53% per month for installment payments in installments of more than 12 months and up to 24 months; and (iii) 82% per month for installment payments in installments of more than 24 months, as well as for deferred installment payments (article. 8, section II, paragraphs 1, 2 and 3, FRL).
- The following tax incentives are maintained:
IT credit against STPS in the case of the acquisition of diesel or biodiesel and its blends: Income Tax ("IT") credit against the Special Tax on Production and Services ("STPS") to persons engaged in business activities, who obtain in the fiscal year total annual income for purposes of the ITL less than 60 million pesos, if they are used exclusively as fuel in machinery in general, except vehicles. This incentive will also be applicable to marine vehicles that comply with the requirements established by the Tax Administration Service through general rules (art. 16, paragraph A, section I, FRL).
STPS credit against IT for transportation: To persons importing or acquiring diesel or biodiesel and its blends for final consumption and for automobile use in vehicles used exclusively for public or private transportation of people or cargo, as well as tourism (art. 16, paragraph A, section IV, FRL).
Credit of 50% of the expenses incurred for the payment of services for the use of the National Toll Highway Network: To taxpayers engaged exclusively in public and private land transportation of cargo or passengers, as well as tourism using the National Toll Highway Network, who obtain in the fiscal year in which they make use of such infrastructure total annual income of less than 300 million pesos (art. 16, section A, subsection V, FRL).
STPS credit against IT for purchasers of fossil fuels: To taxpayers that use fossil fuels in their production processes of other goods and that in their production process such fuels are not destined for combustion (art. 16, subsection A, section VI, FRL).
IT credit against the special mining tax: To taxpayers holding mining concessions and assignments whose total annual gross income from the sale or disposal of minerals and substances referred to in the Mining Law is less than 50 million pesos (art. 16, subsection A, section VII, FRL).
Additional deduction for income tax purposes for an amount equivalent to 8% of the cost of the books, newspapers and magazines acquired: To taxpayers individuals and legal entities resident in Mexico that sell books, newspapers and magazines, whose total income in the immediately preceding fiscal year has not exceeded the amount of 6 million pesos and whose income represents at least 90% of the total income in the fiscal year in question (art. 16, paragraph A, section VIII, FRL). It is important to mention that the incentives granted in accordance with the LIF will be considered as taxable income for purposes of the LISR, at the time they are effectively credited (article 16, paragraph A, penultimate paragraph, FRL).
Regarding exemptions: Taxpayers shall be exempted from the payment of the customs processing duty caused by the importation of natural gas, in accordance with article 49 of the LFD (art. 16, subsection B, second-to-last paragraph, LIF).
Exemptions: Exemption from the payment of the customs procedure duty caused by the importation of natural gas, under the terms of article 49 of the Federal Law of Fees (art. 16, subsection B, penultimate paragraph, FRL).
Withholding of IT by financial institutions: The annual withholding based on which financial institutions must withhold IT payable by holders that maintain capital invested in such institutions was increased from 0.15% to 0.50% (article 21, FRL).
- Federal Law of Fees
Tourists stay right: The income obtained from the collection of the right related to visitors without a permit to carry out remunerated activities that enter the country for tourism purposes, will be destined to the federal public trust fund constituted by the majority state-owned company called Tren Maya, S.A. de C.V. (art. 18-A, FLF).
Addition of a fixed rate to merchandise not subject to charges or fees on the value thereof: A fixed rate of $407.82 is added to the merchandise (in each operation), in import and export matters, when such merchandise is exempted, is returned definitively or temporarily in the same state, has no customs value and on merchandise that, according to international treaties, no charges or fees must be applied on the value thereof (art. 49, section IV, FLF).
Addition of a fee to the holders of assignments and concessions referred to in the Airport Law: A new fee is added to the holders of assignments and concessions, as well as to the decentralized agencies, that carry out the administration, operation, conservation, exploitation and, if applicable, construction of federal airports. To the holders of assignments and decentralized agencies, such right will be determined for each fiscal year, applying the 5% rate to the sum of gross income from airport, complementary and commercial services. To the holders of concessions referred to in the Airport Law, such duty will be determined for each fiscal year, applying the rate of 9% to the sum of the gross income from airport, complementary and commercial services. In both cases, the gross income must be indicated in their audited financial statements, and they must make bimonthly provisional payments, which will be calculated based on the gross income obtained during the immediately preceding two-month period (art. 219, 220, 220-A and 221, FLF).
The revenues obtained from the collection will be concentrated in the Federal Treasury and will be destined to the Ministries of National Defense and the Navy for the strengthening of the airport system under their coordination.
Addition of the fee for the use of the radio electric spectrum: The fee for the temporary use of frequencies of the radio electric spectrum referred to in the Federal Telecommunications and Broadcasting Law is added, and the payment of such fees must be made within three months following the granting of the corresponding authorization (art. 239, FLF).
- Mexico City Tax Code
Real Estate Acquisition Tax: The rates for calculating the corresponding tax are updated (art. 113, MCTC).
Likewise, a reduction equivalent to 50% of the Real Estate Acquisition Tax (“REAT”) will be applied, only in the event that the acquisition derives from a succession by inheritance, provided that some of the assumptions in art. 115, section I, third paragraph of the MCTC are complied with (Sixth transitory article, MCTC).
Property Tax: The rates for calculating the respective tax are updated (art. 130, section I, MCTC).
For the owners or possessors of properties that present damages due to the construction works of the Interurban Train called "Tren Toluca-Valle de México" a remission of between 75% and 100% will be applied, for which a General Resolution will be issued no later than January 31, 2024 where such remission will be contemplated (art. 29, MCTC).
Salaries and Wages Tax: Remunerations made in favor of Household Workers are exempted from such tax (art. 157, section XV, MCTC).
Public Shows: The fees for the issuance of permits for the celebration of public shows are updated as follows: (i) $6,074.00 for Musical shows; (ii) $10,127 for Sports shows; (iii) $6,074.00 for Bullfighting shows; (iv) $2,026.00 for Theatrical shows; (v) $1,943.00 for Cinematographic shows; and (vi) $1,943.00 for Circus shows (art. 190, CFCDMX).
Registrations, Notes or Cancellations made in the Public Registry of Property: The fee for such concepts is updated to $2,302. 00; and the fee is updated for (i) the registration of documents by which the ownership or possession of real estate or property rights is acquired, modified or extinguished; (ii) for the registration of documents by which charges or limitations to the ownership or possession of real estate are constituted, of gratuitous bailment contracts; and (iii) for the registration of acts related to the incorporation, modification, capital increase, spin-off or merger of legal entities. As well as the registration of acts related to financial leasing contracts, credit contracts with mortgage guarantee, refinancing contracts, or contracts for the granting of loans or advances, in the amount of $23,061.00 (art. 196, section I, MCTC).
Filming on public roads: The fees to be paid per day for filming permits on public roads are updated as follows: (i) $1,149.00 for filming on bicycle lanes; (ii) $1,149.00 for filming on pedestrian traffic lanes; (iii) $5,729.00 for filming on vehicular traffic lanes; (iv) $11,458. It is important to point out that such fees shall be increased by fifty percent when the requested filming takes place in the perimeter formed by Eje Central Lázaro Cárdenas, José María Izazaga and its continuation San Pablo, Anillo Circunvalación and its continuation Vidal Alcocer, Peña y Peña and its continuation Apartado and República de Perú; as well as in the road perimeter constituted by Hidalgo Avenue, Doctor Mora, Juárez Avenue and Eje Central Lázaro Cárdenas. (art. 269, MCTC).
It is mentioned that there will be a right to an 80% reduction in the fees for (i) filming in vehicular traffic roads; and (ii) urgent filming in vehicular traffic roads; as long as they are Mexican film productions and these are proven with the certificate issued by the Mexico City Film Commission. (art.280, MCTC).
- Ley de Ingresos de la CDMX (“LICDMX”).
Surcharge rates to be applied in the case of installment payments of tax credits, for purposes of the rate referred to in Article 45 of the Mexico City Tax Code: (i) the applicable rate will be 0.42% per month for installment payments in payments of up to 12 months; (ii) 0.67% per month for installment payments in payments of more than 12 months and up to 24 months; and (iii) 0.83% per month for installment payments in payments of more than 24 months, (third transitory article, MCRL).