© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. Tax Briefings Héctor Silva WMTA - Breakfast Meeting June 19, 2013

DIEMSE Informative Annual Return for Maquiladoras

© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. 3 DIEMSE Informative Annual Return for Maquiladoras According to the Decree effective from January 1, 2012, the IETU benefit to maquiladoras was extended until December 2013: As long as the Maquila met certain requirements, emphasizing in the proper compliance of tax obligations and IMMEX obligations, essentially regarding the full control of imports and exports. Among the requirements for the application of the benefit, stands the DIEMSE informative return, Form that has been on the SAT webpage in previous years, but had no legal basis until it was included in the aforementioned Decree. As of June 1, 2013 SAT issued the rules to file the DIEMSE, that should be done no later July 31, 20 This report will substitute the notice filed to apply for the Safe Harbor option

© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. 4 DIEMSE Informative Annual Return for Maquiladoras Some information requested at DIEMSE: Name, fiscal address and tax ID of the related party with which it has the maquila agreement. Maquila revenues and profit. If the revenues are supported on a transfer pricing study or under safe harbor regulations. If the maquila applied the benefit for Income Tax purposes and its amount. Information of the maquila regarding financial assets, fixed assets, land, inventories, cost and expenses. Information of the related party regarding financial assets, fixed assets, land, inventories, cost and expenses incurred for the maquila operation.

Social Security Reforms

© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. 6 Social Security Reforms Background Representative of the PRI Party proposed the initiative on March 19, The Representatives approved the bill on April 25. As of today, the bill has to be approved by the Senate. The bill has been evaluated by the Senate and shall be voted in the next ordinary term (September 2013).

© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. 7 Social Security Reforms Goals of the Reform Increase the collection of contributions. IMSS and Income Tax Base resemblance. Increase the benefits to workers. Simplify the payment of contributions

© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. 8 Social Security Reforms General Aspects The government estimates that will collect 3 Billion pesos annually. Initiative origin: the income tax base is superior to the IMSS base in 7%. The resources will be used for infrastructure.

© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. Social Security Reforms Article 27 reform 9 The reform mentions that the basis for the contribution (SBC for its acronym in Spanish) is made up by the payments made in cash under daily rate, gratifications, perceptions, food, housing, primes, commissions, benefits in kind and any other benefit that is given to the employee derived from its labor relationship, While the current law establishes that it is when it is given to the employee as a result of its work, and with that avoiding the interpretation to limit the inclusion into the SBC of certain components.

© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. Social Security Reforms General Aspects 10 Same concepts are considered not to be integrated to the SBC. Now everything integrates SBC even though it is not originated from its work. The no integration rule it is that it is exempt for Income tax purposes (except food, food stamps).. Main aspects affected by the reforms: Profit sharing (PTU). Punctuality and assistance bonus. Overtime.

© 2013 Galaz, Yamazaki, Ruiz Urquiza, S.C. Deloitte se refiere a Deloitte Touche Tohmatsu Limited, sociedad privada de responsabilidad limitada en el Reino Unido, y a su red de firmas miembro, cada una de ellas como una entidad legal única e independiente. Conozca en la descripción detallada de la estructura legal de Deloitte Touche Tohmatsu Limited y sus firmas miembro. Deloitte presta servicios profesionales de auditoría, impuestos, consultoría y asesoría financiera, a clientes públicos y privados de diversas industrias. Con una red global de firmas miembro en más de 150 países, Deloitte brinda capacidades de clase mundial y servicio de alta calidad a sus clientes, aportando la experiencia necesaria para hacer frente a los retos más complejos de los negocios. Cuenta con alrededor de 200,000 profesionales, todos comprometidos a ser el modelo de excelencia. Tal y como se usa en este documento, Deloitte significa Galaz, Yamazaki, Ruiz Urquiza, S.C., la cual tiene el derecho legal exclusivo de involucrarse en, y limita sus negocios a, la prestación de servicios de auditoría, consultoría fiscal, asesoría financiera y otros servicios profesionales en México, bajo el nombre de Deloitte. Esta publicación sólo contiene información general y ni Deloitte Touche Tohmatsu Limited, ni sus firmas miembro, ni ninguna de sus respectivas afiliadas (en conjunto la Red Deloitte), presta asesoría o servicios por medio de esta publicación. Antes de tomar cualquier decisión o medida que pueda afectar sus finanzas o negocio, debe consultar a un asesor profesional calificado. Ninguna entidad de la Red Deloitte, será responsable de pérdidas que pudiera sufrir cualquier persona o entidad que consulte esta publicación. Contact: Héctor Silva