Chihuahua, Chih., January 18th, 2019.

Dear Clients and Friends,

We hereby inform you of the possibility to contest the Fiscal Incentives for the Northern Border Region Decree which was published on December 31th 2018 on the Official Federal Gazette, through an Indirect Amparo trial, in order for the “Maquila” industry to be able to apply for the fiscal incentives established on article two of the decree.

Article two awards a fiscal incentive for Mexican individuals and legal entities that comply with the legal requirements therein established. The incentive consists of granting a credit equivalent to one third of the total income tax resulting from either the fiscal year or the provisional payments of that same year. The aforementioned, will take into account the proportion of the total of the taxpayer’s income earned that fiscal year or the period corresponding to the provisional payments, in the total income of the Northern Border Region.

In terms of the article six, section VII, the incentive may not be applied to taxpayers that determine their profit based on articles 181 and 182 of the Income Tax Law. This prohibition infringes the rights granted on the Mexican Constitution by excluding the Maquiladora Industry.

It is important to note, that the deadline to file the complaint for said trial ends on February 12th 2019.

For more information regarding this topic, please do not hesitate to contact Mr. Sergio Humberto Salas Medrano, Partner of the Fiscal and Administrative Area, at his email ssalas@iclmx.com, as well as Mrs. Ana Gabriela Moreno Luna, at her email amoreno@iclmx.com, and Mr. Fernando Antonio Borunda Bustamante at his email fborunda@iclmx.com.

Mr. Sergio H. Salas Medrano.

Inintegrum Corporación Legal, S.C