On February 20, 2007 asset tax incentives were published in the Official Journal of the Federation applicable to certaintaxpayers, which consists of providing an exemption to individuals and corporations whose 2006 fiscal year gross income,derived from business activities and real property leasing used by other taxpayers that pay Mexican asset tax, that do notexceed $4,000,000 (four million) Mexican pesos (approximately $360,000 U.S. dollars). However, these taxpayers mustcalculate asset tax that they would have paid in conformity with new tax regulations in force since January 1, 2007, as if theyhad not been exempt from such payment, putting “zero” annotation in the corresponding box. It is important to note that thisincentive does not change in any way the new provisions of the asset tax law against which many taxpayers have filedappeals alleging the unconstitutionality of such new amendments (see CCN Mexico Report No. 38, February 2007).
