Mexico: Taxation in energy sector - KPMG Global
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Mexico: Taxation in energy sector; hydrocarbons and natural resources

Mexico: Taxation in energy sector

A new framework for taxation in the hydrocarbon sector has led to the publication of new regulations, and to a second round of regulations concerning contracts for exploration and extraction of hydrocarbons.


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In Mexico, the activities of oil and gas companies need to be aligned with provisions of both the hydrocarbons revenue law and the income tax law. Over the past year, there have been changes affecting companies in the hydrocarbon sector, including:

  • Permanent establishment rules for oil and gas activity (30 days)
  • A definition of “technical assistance” with a policy development for situations when engineers are assigned to work in Mexico
  • Specific rates of depreciation for contractors
  • Depletion periods for net operating losses (NOLs) applicable for deepwater activities
  • Special value added tax (VAT) treatment for contractors (most operations that are conducted prior to production are subject to a 0% rate of VAT)


Read a 2017 report [PDF 106 KB] prepared by the KPMG member firm in Mexico

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