1E9Ct5D

Not considered cash deposits and therefore not taxed are deposits received byelectronic transfers, account transfers, negotiable instruments, and other documentsand systems agreed upon by the financial system institutions; thus all transfersthat do not fit under the concept of cash bank deposits alluded to previouslyare excluded.Financial system institutions are those considered as such by the ISR law, among whichare savings and loan companies, banking, insurance and bond institutions, financialgroup holding companies, public bonded warehouses, retirement fund administrators,financial leasing companies, credit unions, popular financial companies, variable rentinvestment companies, debt instrument investment companies, financial factoringcompanies, brokerage firms, money exchange firms, and special purpose financialinstitutions. Mutual fund management companies and investment company stock distributionservices companies will also form part of the financial system.134C H A P T E R V I I6.3. ExemptionsThe IDE will not be paid for the first 25,000.00 pesos (2,296 US dollars) that are receivedduring each month of the fiscal year in one or more accounts of the same account holderin the same financial system institution. On the excess, the tax will be determinedapplying the rate indicated in the above section.As a general rule, the cash deposit will be considered made in favor of the registeredaccount holder. As an exception and by written communication to the financial institution,the account holder can request that the amount of the exemption and of the tax bedistributed among the persons that appear as coholders of the account and in the proportionrequested.6.4. Tax CollectionThe tax corresponding to the cash deposits made during the calendar month will be collectedby the financial institutions themselves on the last day of the correspondingmonth and will be delivered to the Federal Treasury no later than the third business dayfollowing the date of collection.The total amount of the monthly tax will be collected, at the election of the institution,from any of the accounts that the taxpayer has open with it. If time deposits aremade without the depositor having another type of account open, the tax will be collectedby the institution after the due date of any of the time deposits.If the taxpayer’s funds are not sufficient to cover the corresponding tax, the tax orthe balance will be collected when the taxpayer next makes a deposit in the financialinstitution.