Rules Applicable To The Executive Order On The 2017 Repatriation Of Funds

On May 15, 2017 general rules were published by the Tax Administration Service ("SAT") applicable to the "Executive Order granting various income tax breaks for deposits or investments to be received in Mexico", in effect since January 19, 2017.

The Repatriation of Funds Executive Order (the "Executive Order") grants an income tax ("ISR") break to taxpayers resident of Mexico regarding income obtained from direct or indirect investments kept abroad until December 31, 2016. The tax break consists in applying an 8% ISR rate (without inflation adjustments or accruing interest thereon), with respect to income and investments returned to Mexico during the six months following the effective date of the Executive Order (before July 20, 2017).