1E9Ct5D

However, the law exempts the following persons from the application of the IETU: (a)the Federal Government, the States and the Federal District, Municipalities, AutonomousConstitutional Bodies and State-Owned Entities; (b) those not subject to the ISR in certaincases; (c) authorized donees; (d) individuals and entities with income obtained fromfarming, livestock, forestry, or fishing for the income that is exempt under the ISR Law; (e)entities whose shareholders are pension and retirement funds residing abroad; and (f)individuals who engage on an irregular basis on acts that are taxed by the IETU.3.3. RateThe rate to be applied for the IETU is 17.5 percent of taxable profit (taxed income minusauthorized deductions). As a transitory provision, the rate for fiscal year 2008 will be16.5 percent and for 2009 it will be 17 percent.122C H A P T E R V I I3.4. Taxable Base3.4.1. IncomeIn order to calculate the result, the IETU law establishes three different classes of taxpayerincome for this tax: (a) taxed income, (b) exempt income, and (c) income not subjectto this tax.Taxed income is the income that the taxpayer must accrue in order to apply the authorizeddeductions. In general terms, this type of income is income derived from the executionof the activities taxed under this tax, as well as the amounts that are charged to apurchaser for taxes or fees charged to the taxpayer, the amounts that are paid to the taxpayeras normal or late payment interest, contract penalties or any other concept, includingadvances or deposits.Taxes that have been transferred are not considered within this income and specialrules are established for income related to: (a) advances or deposits returned to the taxpayerand previously deducted, (b) amounts received from insurance companies for paymentsunder a policy, (c) financial institutions, and (d) exchanges and payments in kind(market value or appraisal value).For purposes of its calculation, the taxed income is understood as obtained when theamounts charged are actually collected, in accordance with the VAT law.The law establishes generally that the following income is exempt from the IETU: (a)income derived from alienation of partnership interests or stock, documents pending collectionand negotiable instruments, (b) income resulting from the alienation of nonredeemablereal estate certificates of participation that are alienated by individuals on anirregular basis or on the stock market by trusts engaged in real estate construction or acquisition,(c) income resulting from the purchase and sale of Mexican or foreign currency,