These reforms aim to establish the payment of consideration for the extraction of minerals for the benefit of the states and municipalities in which such extraction is carried out.
This consideration will be charged to the concessionaires of mining concessions in production and will be equal to 5% of the amount obtained after reducing the taxable income of such concessionaires by the normal deductions permitted in accordance with the Income Tax Act, except the following:
- Financing costs
- Depreciation and Amortization
The bill was sent at the end of April to the Senate for debate and approval.
We consider that given the new context that prevails in constitutional matters, the obligation to pay taxes that exists through the creation of the special mining right is contrary not only to the doctrine that traditionally prevails in tax matters on rights, but that it also violates the human rights by affecting the property of taxpayers without a legitimate cause for it since the payment of the aforementioned right is not related to the cost to Mexico of providing the service for which it is attempting to charge such contribution.
The Courts have held in a number of cases that the amount contributed by way of rights must be consistent with the cost that for the Mexican State represents the rendering of the service.
As always, the tax practice at KPMG in Mexico is at your service to analyze in detail the effects that this reform could have on your business operations.