1E9Ct5D

f) Income that is taxed at the general rate of 28 percent;i) Income from advertising and royalties, for the temporary use or enjoyment ofpatents or certificates of invention or improvement, manufacturing trademarksand commercial names, when the goods or rights for which they arepaying are enjoyed in Mexico or when this is paid by a tax resident or permanentestablishment in Mexico;ii) Income from the discharge of debts by the creditor or when the debts are paidby another person provided that the creditor that granted the pardon is a residentor permanent establishment in Mexico;iii) Income obtained through the granting of the right to participate in a businessinvestment or any kind of payment for entering into or participating in anykind of legal transaction when it is carried out in Mexico;iv) Income from indemnifications or liquidated damages when the payer is a residentor permanent establishment in Mexico;v) Income obtained for the alienation of commercial credit when the latter isattributable to a resident or permanent establishment in Mexico;g) Income that, depending on the amount, may be exempt or have the tax rate of 15percent and 30 percent applied;i) Salaries and wages when the service is provided in Mexico;ii) Pensions, retirement funds, retirement assets, and lifetime benefits or otherforms of retirement when the payments are made by tax residents in Mexicoor permanent establishments in Mexico or when the contributions are theresult of a subordinate personal service provided in Mexico;h) Income taxed at a rate of less than 25 percent;i) Income from shipping contracts when they involve coastal trade in Mexico,the applicable rate being 10 percent;ii) Royalties for the temporary use or enjoyment of railway cars, which is taxedat the rate of 5 percent;iii) Income from winning prizes when the lottery, raffle, drawing, betting game orcompetition is held in the country; it is taxed at a rate of 1 percent when astate tax does not exist for this income or said tax exists but does not exceed6 percent, and at a rate of 21 percent in all other cases;i) Interest. Interest is taxed in Mexico when capital is sold or invested in Mexico or whenit is paid by a resident or permanent establishment in Mexico. The applicable ratedepends on who grants the loan, the nature of the debtor and what the loan is for;i) Exemptions: (1) loans granted to the Federal Government, Bank of Mexicoand coming from bonds issued by them, (2) loans granted or guaranteed byforeign financial institutions engaged in promoting exports by means of grantingloans or guarantees with preferential conditions provided that the term for119Tax Regime