DECEMBER 2007 EDITION ARCHIVE
Legal Updates
U.S. Internal Revenue Service Clarifies Position on Crediting Single Rate Business Tax (IETU) Paymen
The Internal Revenue Service (IRS) has finally issued its preliminary position with respect to the Single Rate Business Tax (Impuesto Empresarial de Tasa Única or IETU) for purposes of crediting such tax, which is paid in Mexico, in the United States. In release 2008-3, the IRS stated that it will continue to analyze the details of the IETU in order to conclusively define if it is truly an income tax, for purposes of determining the propriety of recognizing IETU tax payments as international... [Read More]General Notes on Mexican Holiday Bonus (Aguinaldo) Pay
Article 87 of the Federal Labor Law (Ley Federal del Trabajo or LFT) establishes that employees have a right to an annual holiday bonus, which must be paid on or before December 20th of each year, and is at least equivalent to 15 days of salary. For employees who have not completed a full year of service, or those who leave the company prior to the holiday bonus year end period, they also have a right to receive a proportional part of the holiday bonus in conformity with the time they worked, however... [Read More]Application of Federal Law to Prevent and Eliminate Discrimination in the Workplace
The Federal Law to Prevent and Eliminate Discrimination (La Ley Federal para Prevenir y Eliminar la Discriminación or LFPED) was published in the Official Journal of the Federation on June 11, 2003. Even though such law has been in effect since then, there has not been an agency responsible for its application until recently, when the National Council for the Prevention of Discrimination was created (Consejo Nacional Para Prevenir La Discriminación). This law protects employees from... [Read More]Decree Establishing Operational Regulations of the Public Registry of Consumers No-Call List
Regulations for the Operation of the Public Registry of Consumers (Reglas de Operación de Registro Publico de Consumidores or RPC) were recently published in the Official Journal of the Federation, which was created by decree pursuant to amendments to the Federal Consumer Protection Law (Ley Federal de Protección al Consumidor or LFPC). The RPC allows consumers to register their telephone number when they do not wish their contact information to be used by marketers or advertising agencies... [Read More]Business & Politics Outlook
Mexican Congress’ Chamber of Deputies Approves Draft Amendments to the Federal Code of Electoral I
On December 11th, Mexico’s Lower House of Congress approved draft amendments to the Federal Code of Electoral Institutions and procedures (Código Federal de Instituciones y Procedimientos Electorales or COFIPE). The new amendments would prohibit candidates, political parties and groups from contracting for electoral propaganda services through electronic media; impose the sanctions in case of serious violations of the law; and provide the possibility of allowing parties to build electoral... [Read More]Direct Foreign Investment in Mexico Increases During First Quarter of 2007
Figures presented on November 21st by the Department of the Economy and Banco de Mexico showed that Foreign Direct Investment (FDI) in Mexico reached $18.397 billion dollars during the first three months of 2007, which is equal to a 30.3% increase in relation to the $14.114 billion dollars in FDI figure registered during the same period in 2006. FDI in Mexico during this period was invested principally in the manufacturing industry, which received 51.1%; the services sector received 31.4%; trade... [Read More]Economic Indicators
Pesos/Dollar Exchange Rate
The quoted exchange rate as of December 13, 2007 was $10.80 pesos per dollar.Mexican Stock Exchange
The Mexican Stock Exchange (BMV) closed on December 13, 2007 at 30,088.04 points.Interest Rates
On December 13, 2007, the Average Interbank Interest Rate (TIEE) for a 28-day period was at 7.92%.Mexico IP Info
New Regulations in the Area of Judicial Competency
The Mexican Institute of Industrial Property (Instituto Mexicano de Propiedad Industrial or IMPI) is the competent Mexican authority to resolve controversies involving industrial property rights. Resolutions of the IMPI may be reviewed by the Federal Court of Tax and Administrative Justice through a contested administrative procedure. Prior to the issuance of the new Organic Law of the Federal Court of Tax and Administrative Justice, which was published on December 6, 2007, competency to resolve... [Read More]Feature Website
http://www.sat.gob.mx
This month we recommend our readers visit the webpage of the Taxpayer Administration Service, http://www.sat.gob.mx where they may obtain detailed information on Mexico’s tax system and, in particular, information published regarding IETU tax payments made in Mexico in other countries.