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6.8. Crediting Option (Monthly)136C H A P T E R V I ITaxpayers can choose to credit, against the amount of the provisional payment of the ISRcorresponding to a specific month, an amount equivalent to the estimated amount of theIDE that they would pay the following month.Once the amount of the IDE actually paid in the month in question (by collection fromthe financial institutions) is determined, the comparison with the tax credited in thatmonth will be made.Obviously, if the IDE credited was greater than that actually paid, the difference mustbe paid together with the provisional payment of the ISR corresponding to the monthfollowing the one in which it was credited. If such difference exceeds 5 percent or moreof the IDE actually paid, the difference must be paid with adjustments for inflation andsurcharges.If on the other hand, the IDE that is credited is less than the amount actually paid, thedifference can be credited, offset or requested as a refund as explained above.7. Local TaxesAccording to the Political Constitution of the United Mexican States, the Federal Government,the States, and the Federal District have the power to impose or create taxeswithin the scope of their respective jurisdictions.The Federal Government can create taxes exclusively on matters indicated in Article 73of the Constitution, among which are foreign trade and enjoyment and exploitation of thenatural resources of the subsoil and of national waters, as well as on banking institutionsand insurance companies, concessioned public services or those exploited directly by theFederal Government, and in addition, special taxes on electricity, the production and consumptionof processed tobaccos, etc.For their part, the States can, through the legislatures, establish taxes necessary forcovering their budgets, provided that they are not imposed in areas exclusive to the Federationand have not been expressly prohibited in the Constitution.With regard to the Federal District, Article 122 of the Constitution establishes that theCongress of the Union can only legislate in areas that are not expressly conferred on theLegislative Assembly of the Federal District, and the same principle authorizes the Assemblyto approve the taxes necessary to cover its budget.Despite the above, there are areas in which the Federal Government as well as theStates and the Federal District can impose taxes. In order to avoid local and federaltaxes on the same things, the Fiscal Coordination Law was issued, which allows forthe execution of Fiscal Coordination Agreements, in which the states agree not toimpose local taxes on that which the Federal Government has already taxed and the