ARTICLE 43: SCHEDULER TAXES THAT MAY BE ESTABLISHED BY FEDERAL ENTITIES

The Federative Entities may establish scheduler taxes on the income obtained by individuals who receive income for the provision of professional services, for granting the temporary use or enjoyment of real estate, alienation of real estate or for business activities, without being considered as a breach of the agreements concluded with the Secretary of Finance and Public Credit (Secretaría de Hacienda y Crédito Público) or of article 41 of this Law (LIVA: Art. 41), when said taxes meet the following characteristics:

For the purposes of this section, income from the provision of professional services shall be understood as the remuneration derived from independent personal services that are not assimilated to the income from the provision of subordinate personal services, in accordance with article 94 Law on Income Tax (Ley del Impuesto sobre la Renta). The Federative Entities may tax within the scheduler tax on wages or salaries, independent personal income that is assimilated to the income for the provision of a subordinate personal service.

The Federal Entities that establish the tax referred to in this section, may only consider as taxable, the taxable profit of the taxpayers that is attributed to the fixed bases in which they provide the services that are in the Federal Entity in question When services are provided outside the fixed base, it will be considered that the activity is carried out in the premises that serve as the basis for the person who provides said services.

When a taxpayer has fixed bases in two or more Federal Entities, to determine the tax that corresponds to each one of them, the taxable profit obtained by all the fixed bases that has been considered, and the result will be divided among them in the proportion that represent the income obtained by each fixed base, with respect to the total income.

The income tax for granting the temporary use or enjoyment of real estate will correspond to the Federative Entity where the real estate in question is located, regardless of whether the taxpayer has its fiscal address outside said Federative Entity.

The Federal Entities that establish the tax referred to in this section may only tax the taxable income obtained by the taxpayers, by the establishments, branches or agencies that are in the Federal Entity in question.

When a taxpayer has establishments, branches or agencies, in two or more Federal Entities, to determine the tax that corresponds to each of them, the sum of the taxable profit obtained by all the establishments, branches or agencies that have, and the result will be divided among them in the proportion that represents the income obtained by each establishment, branch or agency, with respect to the total income.

The Federative Entities may establish different rates within the limits established by this article for each of the scheduler taxes referred to in this article.

The basis of the scheduler taxes referred to in this article, shall consider the same income and the same deductions that are established in the Law on Income Tax (Ley del Impuesto sobre la Renta) of federal character, for income similar to those contemplated in the aforementioned scheduler taxes, not including the local scheduler tax.

When the income referred to in section III of this article derives from the contribution of real estate that the trustors, individuals, carry out the trusts referred to in article 187 of the Law on Income Tax (Ley del Impuesto sobre la Renta), the scheduler tax must consider the gain at the same time as the Law on Income Tax (Ley del Impuesto sobre la Renta) establishes for the accumulation of said income.

The Federative Entities that establish the scheduler tax referred to in section III of this article, may not tax the alienation of non-amortizable real estate participation certificates, when they are registered in the National Registry of Securities (Registro Nacional de Valores) and Intermediaries and their alienation is made in a stock market concession under the terms of the Securities Market Law (Ley del Mercado de Valores) or in recognized markets according to international treaties that Mexico has in force.

Likewise, the Federal Entities may agree with the Federation, through the Secretary of Finance and Public Credit (Secretaría de Hacienda y Crédito Público), that the local taxes that may be established in their Federal Entity are paid in the same federal income tax declarations.