Individuals, who obtain income from business activities or professional services, will be able to perform the following deductions:
I. From devolutions that are received, discounts or credit bonuses provided by the related revenue accumulated.
II. Purchases of goods and raw materials, semi-finished products or finished, that has been used to provide services, tomanufacture goods or to alienate.
According to this section, will not be deductible : fixed assets, land, shares, social parties, bonds and other securities, securities that represent the real property, excepting the certificates of deposit of goods or merchandise, the currency foreign pieces of gold or silver that would have the character of currency or foreign currency such as Troy ounces. In the case of income from the sale of land and stock, is subject to the provisions in
Articles 21 and 24 of this Act, respectively.
V. Interest expense arising from business or professional service, without adjustment
,such as those generated by capital borrowed provided as long as the funds have been spent on the purposes of the activities referred to inthis section.
VI. Contributions paid by employers to the Mexican Institute of Social Security, even when they are in charge of their workers.
VII. Payments made by the local tax on income from business activities or professional services.
Fraction added DOF 01/12/2004
In the case of natural persons residing abroad who have one or more establishments permanent in the country, they may makedeductions that apply to the activities of permanent establishment, whether the expended in Mexico or anywhere else, even when apportioned to any establishment located abroad, applying the effect to the provisions of Article 30 of this Law
Last paragraph (Repealed).
Taxpayers referred to this Section shall determine the deduction for investments under the provisions of Section II ofChapter II of Title II of this Act. For this purposes, are consider as investments, the ones that appear on Article 38 of this Law.
For purposes of this article, the percentages of deduction will be applied to the original amount of investment, even if the full amount is not paid in the year in which the deduction applies. When you can’t separate the original investment amount of the interest,the corresponding percentage will apply to the total amount, in which case, no interest may be deducted in terms of section V of article 123 of this Law
Taxpayers which are referred this Section, that only provides professional services and during the preceding fiscal year their revenues have not exceeded $ 840,000.00, other way than implementing the provisions of the preceding paragraphs ofthis Article, they may be able to deduct the expenses made during the year for the acquisition of fixed assets, expenses or deferred charges. This paragraph shall not apply in the case of cars, land and buildings, for which the provisions in Title II of this Act. The referred amount on this paragraph will be updated under the terms stated in the last paragraph of Article 177 of this ActArticle 125.
The deductions authorized in this Section, in addition to meeting the requirements established in other tax provisions, must meet the following:
I. They must have been expended in the year in question. Are considered as effectively expended once the payment was made in cash, account transfer on credit institutions, or by services or other goods other than credits. In the case ofcheck payment,will be considered as actually disbursed on the date on which it has been collected or when taxpayers checks transmitted to a third party, except where such transmission is in procurement. Also will be considered as expended when the taxpayer actually give credits signed by a different person. It is also understood that it is actually disbursed when the creditor's interest is...