New tax benefits for assignees engaged in hydrocarbon in the exploration and extraction of hydrocarbons

The publication in the evening edition of the Official Gazette of the Federation ("DOF") of the Decree granting tax benefits.

On January 24, 2024, a Decree was published in the evening edition of the Official Gazette of the Federation ("DOF") granting tax benefits to the indicated taxpayers, allowing state-owned productive companies exclusively engaged in the exploration and extraction of hydrocarbons (the "Assignees"), consisting of a deferral and payment schedule concerning the provisional payments on account of the annual fee for the shared profit, as well as the monthly payments of the hydrocarbons extraction fee (the "Decree").

To whom is it addressed?

State production companies that hold concessions for the exploration and extraction of hydrocarbons in the country and that are obliged to make provisional monthly payments of the right to share in the profits, and the right to extract hydrocarbons for the last months of the fiscal year 2023.

What are the benefits?

The Decree authorizes Assignees to make monthly provisional payments of the production sharing right and the hydrocarbon extraction right for the months of October, November, and December 2023, with a 100% deferral of the corresponding tax, according to the following payment schedule:

What does the application of these benefits imply?

Assignees who make the provisional payments in accordance with the payment schedule established in this Decree will be considered to have made the payments in due time and form, and therefore not be subject to any surcharges for extension, or updating, nor will they be subject to any penalty whatsoever.

What requirements must I comply with?

Assignees will be able to apply for these benefits as long as they are up to date with their tax obligations.

When does it become effective?

The Decree became effective on the date of its publication in the DOF, that is, January 24, 2024.