35. The tax is assessed directly against the taxpayer who is engaged in commerce, industry, agriculture or a profession (Schedules 1, 2, 3 and 7). Likewise taxpayers receiving at their domicile or establishment in Mexico interest (Schedule 4), royalties or other income from the exploitation of the subsoil or concessions granted by the Federal Government, the States or the municipalities (Schedule 5) must pay the tax direct. The payment of tax is effected, to a certain extent, at the same time as the return is made.

36. Taxpayers engaged in commerce, industry or agriculture (Schedules 1, 2 and 3) must make a provisional return of their probable taxable profits and pay tax on this amount within the seventh month from the beginning of the accounting period which will serve as a basis in making their final return. The tax on the provisionally declared income is computed by first calculating the percentage of taxable profit according to the previous definitive return to the total gross income in said return, and applying this percentage to the total gross income of the first six months covered in the provisional return.

37. From the amount of the tax payable on the basis of the definitive return, there is deducted the amount paid on the provisional return. If the provisional tax exceeds the amount of definitive tax owed, the excess will be reimbursed to the taxpayer.

Definitive returns are made by taxpayers to the local tax offices in the districts where they have their domicile or principal establishment in Mexico, as follows:

38. The returns are signed by the taxpayer or his authorised representative. Taxpayers engaged in commerce, industry or agriculture receiving income from two or more businesses included in the same schedule will make respective returns comprising the total of the income received through said businesses. If an enterprise has various branches, it must declare the total income of the enterprise at the tax office situated in the district of the head office of the enterprise.

39. When several companies have a distinct legal entity but carry on business relations in such a way that they merge their accounting, their management, and carry out their transactions in common, they may make, provided previous notice is given to the Finance Department, returns of the total income received from such companies; but, once this form of return has been adopted, they cannot modify it without the previous permission of the Finance Department.

40. No final return may include a period greater than twelve months. Taxpayers must notify the local tax office within ten days when they begin business, change the purpose of their business, their name, company name, domicile, or alter the capital of the company.

41. The tax is paid by cancelling stamps affixed to the declarations, receipts or pertinent documents. The tax may also be paid in cash or drafts or certified cheques.


42. Tax is paid by withholding at the source under Schedule 4 when interest is paid to a creditor who does not himself acquit the tax, and, in any event, when the creditor is outside Mexico; under Schedule 5, when the recipient of mining royalties or similar income is outside Mexico; and under Schedule 5, whenever an employer in Mexico pays wages, salaries, etc. The taxpayers who retain any amount of tax must make a monthly return of the amounts withheld, indicating the schedule under which it was withheld, and will pay the tax as previously described.

43. The following are required to withhold the tax, and are jointly liable with the taxpayers for its payment: