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2. TAXABLE INCOME

10. Income derived from a source of wealth described in one or another of the seven schedules is either national or foreign according to the situation of its source or to the place where a business transaction is realised. In the case of a business enterprise, the income is definitely Mexican if derived through the activities of a permanent establishment in Mexico. Income from transactions which are casual or are not effected through a permanent establishment will, as a general rule, be regarded as taxable if the transaction was realised in Mexico — that is to say, if the contract was carried out in Mexico. If the contract involved the sale of goods, liability would be incurred if delivery of the goods and the payment therefor were effected in Mexico. The place where the contract was concluded is of secondary importance.

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