Tax Regime  2008

EQUITY
Market Profits	v  Local individual Stocks v  Foreign individual stocks v  Mexican Stock Exchange Index (IPC) v  Physical Delivery or Cash Settlement
Residents in Mexico	Rate and Modality
Individuals	Without Withholding (Art 109 frac XXVI) LISR
Corporations	Without Withholding Always accumulable
Foreigners	Rate and Modality
v  Countries with a treaty to avoid the dual taxation. v  Countries with NO Treaty v  Tax Havens	Without Withholding ( Art. 190, 192 y 109 frac XXVI LISR y Art 264 LISR
DEBT
Market Profits	v  Interest Rates v  Government debt Securities v  Consumer Price Index v  Physical Delivery or Cash Settlement
Residents in Mexico	Rate and Modality
Individuals	Withholding of 25% on the monthly net gain in transactions with the same institution. (Art. 171) Always accumulable. If it is settled by giving the security, the party who receives it must withhold 0.85% on capital, unless it is a tax-exempt title.
Corporations	Without Withholding Always accumulable
Foreigners	Rate and Modality
v  Countries with a treaty to avoid dual taxation.     v  Countries with NO Treaty     v  Tax Havens	Without withholding on TIIE or Government debt Instruments,  in a market recognized by MexDer (Art.199 LISR).
	Withholding of 10% to Financing Entities, Pensions and Retirement Funds and Foreign Investment Funds with registry (2) before the Ministry of Finance and Public Credit (Art. 195 fr. I,a), unless something else is indicated in the treaty (3)   Withholding of 4.9% for credit instrument interests (Art. 195 fr. II and 199).
	Withholding of 4.9% in 2008 to foreign banks (Transit. for Art. 195 fr. I,a, num. 2).
	Withholding of 10% for credit instrument interests (Art. 195 fr. l, b).  Withholding of 40.0% to Individuals and Corporations. (Arts 204 and 205).

Notes.

(1) This table is just for informative purposes, this institution is not liable for omissions or law interpretations besides it does not involve any recomendation on purchasing or saling decisions, it is exclusive responsability of the reader. Any individual or corporation resident in national or foreign territory must take consulting services for a better interpretation and the correct meaning of this law to prevent dual taxation, in order to performance responsabilities.

(2) Article 192 of the Federal Income Tax Law establishes that the tax must be determined by applying the 25% rate on the gain received by the resident in other country from the financial derivatives transactions, as the case may be, calculated in terms of article 22 of the aforementioned Law.