1. ©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C. MONTHLY ESTIMATED INCOME TAX PAYMENTS Héctor Silva Meeting – Breakfast August 18, 2010

2. ©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C. Article 14 of the MITL “Tax payers shall pay estimated monthly income tax payments in consideration for the annual income tax. Payment shall be made by the 17 th of the month following the one the tax is computed”. 2 MONTHLY ESTIMATED PAYMENTS

3. ©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C. 3 ESTIMATED MONTHLY PAYMENTS FORMULA Gross revenue (*) Profit factor Estimated profit (-) NOL Tax base (*)30% = Estimated income tax (-) Prior payments = Tax due

4. ©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C. ESTIMATED MONTHLY PAYMENTS Profit factor 4 Formula for the profit factor: Prior year’s taxable income Total gross income Notes 1: If no profit factor is obtained from the last twelve months period, the last factor of the prior five years will be used. 2:Income tax Regulations precise that factor used and computed up to four fractions (0.0000)

5. ©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C. RULE 1. 3. 19. 8 OF THE MISCELLANEOUS TAX RULES Maquiladoras may compute their estimated income tax payments for November 2003 and subsequent months by applying the profit factor for October 2003 adjusted with the 3% instead of the 6.5% or 6.9% as stated in article 216-bis of the MITL. 5

6. ©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C. RULE 1. 3. 19. 8 OF THE MISCELLANEOUS TAX RULES Maquiladoras electing to compute their taxable income based on a Transfer Pricing Study, may adjust the profit factor by applying the 3% mentioned to the taxable income used to compute the profit factor. 5

7. ©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C. REDUCTION OF ESTIMATED MONTHLY INCOME TAX PAYMENTS Article 15 MITL When tax payers estimates that income tax will be over-paid at year-end, may request authorization to reduce estimated payments as from the second semester of the year. Any shortage in the estimate will arise the payment of interests. 5

8. ©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C. 8Footer (edita este texto en la opción Insert > Header & Footer > Apply to all) Application for authorization must be filed a month prior due date. Application to reduce the September payment is due by September 17th. Application must include: -Current balance sheet and income statement -Pro-forma BS and IS as of December 31 -Pro-forma of book/tax reconciliation -Payments made during the year REDUCTION OF ESTIMATED MONTHLY INCOME TAX PAYMENTS

9. ©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C. Héctor Silva hsilva@deloittemx.com +52 (664) 622 7840