MARCH 2008 EDITION ARCHIVE
Legal Updates
Mexican Employers Receive Partial Exemption from Employer Portion of Social Security Payments
On March 3, 2008, Mexico’s federal government issued the “Decree Providing a Partial Exemption for Payment of Employer Social Security Law Payments” in order to stem possible negative effects of a downturn in Mexican economic growth. Such Decree relieves employers of the obligation to pay amounts equivalent to five percent of the employer portion of Social Security Law payments corresponding to workplace risk, illness and maternity, disability and life, and employee benefits insurance... [Read More]Mexico Revises Tax Incentives Applicable to the Cargo and Passenger Transportation Services Industry
Through a decree published in the Official Journal of the Federation on March 4, 2008, Mexico revised previously enacted tax incentives applicable to the cargo and passenger transportation services industry, as well as the incentives granted to companies that provide urban passenger bus transportation services. Such tax incentives seek to promote the substitution of older vehicles with newer more efficient ones. The tax incentives also apply to manufacturers, assemblers or authorized distributors... [Read More]Confidentiality in the Workplace
It is advisable for businesses to, at the time of entering into individual labor agreements, clearly specify that their employees agree not to divulge to any individual or company trade secrets, administrative processes, professional advice, production, sales, manufacturing, distribution or any other confidential information that such employees obtain in the course of their employment, the dissemination of which could cause harm to the company. In addition, such labor agreements should specify that... [Read More]Decree Grants Tax Incentives Pertaining to Mexican Income Tax and Single Rate Business Tax
On March 4, 2008, tax benefits relating to the Income Tax (Impuesto Sobre la Renta or ISR) and Single Rate Business Tax (Impuesto Empresarial a Tasa Única or IETU) were published in the Official Journal of the Federation and apply to individuals and entities carrying our business and professional activities in Mexico, as well as those parties who receive income from real property leasing activities. The purpose of such benefit is to stimulate economic activity and protect jobs in Mexico. With... [Read More]Decree Establishes Job Creation Program for Marginal Economic Areas
On March 5th the “Decree Establishing a Job Creation Program for Marginal Economic Areas” entered into force, the purpose of which is to encourage job growth and promote the installation and operation of production centers located in parts of Mexico with high or very high poverty rates, according to the most recent official statistics, where the local population does not exceed 50,000 persons and where such project will create permanent jobs. A production center is defined as an establishment... [Read More]Decree Providing for Administrative Processes to Obtain Renewals of Expired National Water Concessio
On February 27th a Decree providing administrative processes to National Water concession holders was published in the Official Journal of the Federation suspending the federal land, reserves and regulated zones for concession holders of national water rights that expired between January 1, 2004 and December 31, 2008, or which are currently in force but have not yet applied for a renewal of the concession according to the terms of article 24 of the National Waters Law (Ley de Aguas Nacionales) (at... [Read More]Environmental Notes – Prohibition on Development of Projects that Include Removal of Mangrove
Last year’s amendments to article 60 TER of the General Wildlife Law (Ley General de Vida Silvestre) drastically limit certain activities such as removing mangrove from real property, allowing only those developments that have as their objective the protection, restoration, study or conservation of such areas to proceed, which serves as an obstacle to developing many projects and makes certain projects impossible to develop, including infrastructure, tourism and real estate projects all along... [Read More]Business & Politics Outlook
Mexico Develops Energy Reform Proposals
The government of President Felipe Calderon has proposed energy reforms to increase Mexico’s oil production through deep water drilling in the Gulf of Mexico, according to Jordi Herrera, Undersecretary of Energy Planning and Technology Development of the Mexican Department of Energy. For their part, federal legislators of the National Action Party (PAN) and the Institutional Revolutionary Party (PRI) have worked together to arrive at their energy reform proposals, without the input of Petróleos... [Read More]Possible Renegotiation of a North American Free Trade Agreement and the Impact on Mexico’s Agricul
On March 6th, federal legislators from the United States, Mexico and Canada announced the formation of a working group to renegotiate the North American Free Trade Agreement (NAFTA). Such group plans to meet in the coming months to define a strategy for carrying out reforms to the 1994 trilateral trade pact. In relation to such a possible renegotiation, the Agriculture and Ranching Committee of the Mexican House of Representatives (Cámara de Diputados) announced that in the coming weeks it... [Read More]Economic Indicators
Pesos/Dollar Exchange Rate
The quoted exchange rate as of March 13, 2008 was $10.77 pesos per dollar.Mexican Stock Exchange
The Mexican Stock Exchange (BMV) closed on March 13, 2008 at 29,703.09 points.Interest Rates
On March 13, 2008, the Average Interbank Interest Rate (TIEE) for a 28-day period was at 7.91%.Mexico IP Info
Fictitious Characters
In addition to literary, artistic, musical and software works, etc., the Mexican Federal Copyright Law (Ley Federal del Derecho de Autor) protects the rights of authors, which grants such authors the exclusive use of names, titles, denominations, distinct physical and psychological characteristics or characteristics of original operational applications, periodical publications, periodical disseminations, human personal caricatures or fictitious or symbolic characters, persons or groups dedicated... [Read More]Feature Website
www.gob.mx
This month we recommend our readers visit the webpage of the Mexican Federal Department of the Interior, www.gob.mx, to find information related to various transmittals, services, statistics and legislation as well as links to web pages of Mexican federal agencies and information of interests on various federal agencies.