Chihuahua, Chih., April 8th, 2020.

Dear Clients and Friends,

We hereby inform you that the General Resolution published in the Official Gazette of the state of Chihuahua on April 4th 2020 grants several fiscal incentives approved by the Government of the State of Chihuahua by means of Resolution 056/2020.

The aforementioned resolution grants fiscal incentives and administrative eases for the compliance of fiscal obligations, regarding the following;

1. Payroll Tax Incentive for:

(i) Companies with up to 50 employees: Credit of the total amount (100%) of the payroll tax to be covered in April and May 2020.

(ii) Companies with 51 up to 90 employees: Credit of 50% of the corresponding tax that should be covered in April and May 2020.

(iii) Companies with more than 90 employees: An administrative ease will be granted, consisting in an extension for the payment of 50% of the payroll tax to be covered during April and May 2020. Thus, the remaining 50% shall be covered in November 17th and December 15th 2020, respectively.

The benefits herein referred will not be cumulative with other benefits. The taxpayer shall: be up to date with the payment of said tax; sign a commitment to maintain at least 70% of the registered employees as of February 29th 2020; and pay the herein tax within the established terms.

2. Incentive for the payment of Vehicle Control Rights:

(i) If the taxpayers pay the corresponding rights on April, May or June 2020, the tax authority shall credit an amount depending on the vehicle’s model, pursuant the range table foreseen in the Resolution.

(ii) The tax authority will credit the taxpayer an equivalent amount of the corresponding State’s University Tax, as foreseen in the range table; if the special requirements regarding the payment of Vehicle Control Rights are met.

3. Incentive for Lodging Tax:

(i) The tax authority shall credit the total amount (100%) of the corresponding tax to be covered during April, May and June 2020.

4. Miscellaneous Tax Incentives:

From April 5th until June 30th 2020, benefits will be granted in the payment of rights for the issuance of certified copies of Civil Registry Records; issuance or exchange of Driver’s Licenses; and issuance of Licenses for the sale of alcoholic beverages on events, as well as for the operation of establishments where alcoholic beverages are supplied, among others.

The aforementioned, will only be applicable if the taxpayer is up to date with his/her tax obligations and complies with the requirements established by the authority in the aforementioned Resolution.

As a result of the above, if you have any inquiry or any doubts regarding its application, please do not hesitate to consult us.

Kind regards.