Agreement Issuing General Rules for the Application of the Fiscal Incentive to Projects for Investment in the Production and Distribution of National Cinematography

DOF: 12/01/2024

AGREEMENT issuing the General Rules for the application of the Fiscal Incentive to Projects for Investment in the Production and Distribution of National Cinematography

Interinstitutional Committee for the Application of the Fiscal Incentive to Projects for Investment in the Production and Distribution of National Cinematography.

The Interinstitutional Committee for the Application of the Fiscal Incentive to Projects for Investment in the Production and Distribution of National Cinematography, pursuant to the provisions of Article 189, fifth paragraph, fraction V of the Income Tax Law, has seen fit to issue the following:

AGREEMENT ISSUING THE GENERAL RULES FOR THE APPLICATION OF THE FISCAL INCENTIVE TO PROJECTS FOR INVESTMENT IN THE PRODUCTION AND DISTRIBUTION OF NATIONAL CINEMATOGRAPHY

I. Definitions

1. For the purposes of these rules, the following shall be understood:

a) CE: the Evaluation Council created by IMCINE, composed of individuals with experience and/or knowledge in cinematography, which is responsible for issuing non-binding recommendations regarding applications submitted through the Online System. The CE shall be organized into two working groups:

i. CE Production: which shall have the objective of issuing recommendations regarding investment projects in national cinematographic production.

ii. CE Distribution: which shall have the objective of issuing recommendations regarding investment projects in the distribution of national films.

b) Committee: the Interinstitutional Committee for the Application of the Fiscal Incentive to Projects for Investment in the Production and Distribution of National Cinematography.

c) Contributing Taxpayer: the income tax taxpayer who contributes cash, through any financial instrument, to investment projects in the production or distribution of national cinematography.

d) Interested Taxpayer: the income tax taxpayer who has an interest in registering to participate as a contributing taxpayer in one or more investment projects in the production or distribution of national cinematography.

e) National cinematographic distribution: actions, activities, and strategies to promote the exhibition or commercialization of national films with cultural, artistic, and cinematographic merits, in commercial, cultural, or mixed exhibition circuits.

f) e.firma: Advanced Electronic Signature.

g) ERPI: Responsible Company for the Investment Project

h) Responsible company for the investment project in national cinematographic distribution: a Mexican natural person or legal entity constituted under Mexican laws, resident in Mexico or resident abroad with a permanent establishment in the country, whose predominant activity is to promote the exhibition or commercialization of national films in commercial, cultural, or mixed exhibition circuits; and which shall have the exclusive responsibility to carry out the investment project until its conclusion.

i) Responsible company for the investment project in national cinematographic production: a Mexican natural person or legal entity constituted under Mexican laws, resident in Mexico or resident abroad with a permanent establishment in the country, whose predominant activity is the production of cinematographic works and which shall be responsible for carrying out the investment project in question.

j) Fiscal incentive: the one granted in relation to investment projects in the production and distribution of national cinematography, in terms of Article 189 of the Income Tax Law.

k) Exhibition: the public projection of the film in its final professional format in paid screenings within the regular programming of cinema halls and at film festivals. For the purposes of this subsection, the film festivals are the following: Guadalajara International Film Festival (FICG), Guanajuato International Film Festival (GIFF), Morelia International Film Festival (FICM), Los Cabos International Film Festival, Ambulante, UNAM International Film Festival (FICUNAM), Mexico City International Documentary Film Festival (DocsMX), and Monterrey International Film Festival (FICMonterrey).

In the case of investment projects in cinematographic production, exhibition may also be accredited by making available on technological platforms, software applications, and similar services, in subscription, rental, and/or video sale modalities accredited in Mexico, provided that they have been exhibited for at least two weeks in commercial halls or film festivals, or alternative exhibition spaces or circuits, as referred to in the preceding paragraph.

l) IMCINE: the Mexican Cinematography Institute.

m) List of projects eligible for authorization: List of projects that, according to the evaluation carried out by IMCINE and in accordance with the recommendation of the CE, meet the artistic, cultural, and cinematographic merits, as well as their viability to be eligible for authorization. The list shall include the name of the ERPI and the amount eligible for authorization.

n) List of authorized projects: list of investment projects, responsible companies, contributing taxpayers, and amounts authorized by CIEFICINE, which shall be published on the websites of IMCINE, the SC, the SHCP, and the SAT.

o) Amounts eligible for authorization: Amount eligible to be authorized for each investment project according to the evaluation carried out by IMCINE in accordance with the recommendation of the CE.

p) IMCINE Website: the website with address www.imcine.gob.mx.

q) SC Website: the website with address www.gob.mx/cultura

r) Website of the Ministry of Finance and Public Credit: the website with address https://www.estimulosfiscales.hacienda.gob.mx/

s) Website of the Tax Administration Service: the website with address https://www.gob.mx/sat

t) Related parties: persons considered as such in terms of Articles 90, last paragraph, and 179, fifth and sixth paragraphs of the Income Tax Law.

u) National cinematographic production: feature films with cultural, artistic, and cinematographic merits whose production expenses are incurred in national territory in more than 70% and whose cast, creative, or technical personnel as a whole are of Mexican nationality in more than 70%. National cinematographic production is also considered to include films produced in international co-production in terms of Articles 7, fraction II, and 15, second paragraph of the Federal Cinematography Law and 13 of its Regulations, provided that the expenses of the cinematographic production incurred in national territory represent more than 70% of the total contribution in which the Mexican part participates in said co-production and that the cast, creative, or technical personnel hired with the total contribution mentioned are, as a whole, of Mexican nationality in more than 70%. The total amount of the fiscal incentive, if any, authorized to the contributing taxpayer in question shall not exceed the total amount of the participation corresponding to the Mexican part in the cinematographic film produced in co-production.

v) Investment project in national cinematographic distribution: investments in national territory intended to promote the exhibition or commercialization of national films in commercial, cultural, or mixed exhibition circuits.

w) Investment project in national cinematographic production: investments in national territory intended for the production of a feature film.

x) SAT: Tax Administration Service.

y) SC: Ministry of Culture.

z) SHCP: Ministry of Finance and Public Credit.

aa) Online System: the site contained on the SHCP website, developed for the sending and receiving of applications for the application of the fiscal incentive; the sending and receiving of required digitized documents; the consultation of information related to the investment project in the production or distribution of national cinematography, and the processing of the fiscal incentive, as well as the monitoring of said authorized investment projects and the consultation of the corresponding notifications in terms of these rules.

ab) Application: the digital document sent, received, and archived in the Online System, through which the responsible companies for the investment projects in the production or distribution of national cinematography and the interested taxpayers formalize the application for the application of the fiscal incentive.

II. Of the Committee

2. The representatives of the SC, IMCINE, SHCP, and SAT shall have substitutes, who shall be freely designated by the titular representatives. The substitution of the representatives and their substitutes shall be notified to the Committee through the Technical Secretariat within a period not exceeding ten business days counted from the date of substitution.

3. The Committee shall hold ordinary sessions four times a year and extraordinary sessions when requested by any of its members.

4. For the Committee to convene, all its members must be present. If this quorum is not met, the Presidency of the Committee shall convene a second session to be held within the next three business days, which shall take place with at least the attendance of the President of the Committee and any other of its members.

The members of the Committee shall have one vote and shall not abstain from voting, unless there is any impediment to do so in accordance with what is established in the General Law of Administrative Responsibilities. The President of the Committee or his substitute, as the case may be, shall have a casting vote and shall represent the Committee before judicial and administrative authorities in matters related to the acts and resolutions issued regarding the fiscal incentive.

The Technical Secretariat of the Committee shall have the right to speak, but no vote.

5. The agreements of the Committee shall be taken by unanimity regarding the modification of these rules and by majority in other matters.

6. The Committee shall have the following powers:

a) Approve modifications to these rules.

b) Issue the agreements necessary for the fulfillment of its purpose.

c) Approve the list of projects eligible for authorization, the list of authorized projects, and the amounts referred to in subsections m), n), and o) of rule 1, respectively, for each period.

d) Authorize, if applicable, the amount of the fiscal incentive for contributing taxpayers, attending to the investment project in the production or distribution of national cinematography in question.

e) Process the publication in the Official Gazette of the Federation of the information referred to in Article 189, fraction IV of the Income Tax Law, as well as the rules referred to in fraction V of the same article.

f) Monitor compliance with these rules and other provisions related to the fiscal incentive.

g) Revoke the granting of fiscal incentives when appropriate.

h) Interpret these rules.

i) Form working groups to carry out analysis, studies, or evaluations related to investment projects in the production or distribution of national cinematography and with fiscal incentives. As well as request from the members of the Committee, through the Technical Secretariat, the information and documentation necessary within the scope of their respective competencies for the application of the fiscal incentive.

j) Request the free advice of educational or professional institutions of recognized prestige related to the cinematographic industry in their production or distribution branches, which must accept the obligation to keep absolute confidentiality of the information they know by reason of said activity.

k) Receive promotions, notifications, and other requirements made by administrative or judicial authorities related to the fiscal incentive.

For the purposes of the preceding paragraph, the Committee shall have its domicile at that of the Technical Secretariat, which can be found on the incentives website, www.estimulosfiscales.hacienda.gob.mx.

l) Channel to the authorities that, in accordance with their attributes and powers, are competent to attend to the promotions, notifications, and other requirements that administrative or judicial authorities make to the Committee in relation to the fiscal incentive.

m) Those others provided by laws and other applicable provisions, for the strict application of fiscal incentives.

7. The President of the Committee shall have the following powers:

a) Convene the members of the Committee to session. In the case of an ordinary session, it shall be held five business days in advance and in extraordinary sessions at any time requested by any member of the Committee, indicating the date, time, and place where the session will take place, as well as making known the corresponding agenda.

b) Submit to the consideration and approval of the Committee the publications foreseen in these rules, at least five business days in advance of the publication deadline.

c) Verify and follow up on the execution of the Committee's agreements and resolutions.

d) Appoint the Technical Secretariat of the Committee.

e) Those others instructed by the Committee and within its purpose.

8. The President of the Committee shall be assisted in the performance of his attributes by a Technical Secretariat, which shall have the following functions:

a) Keep control of the applications for fiscal incentives, both from companies and taxpayers, in order to organize the holding of authorization sessions.

b) Prepare the Lists of projects eligible for authorization and of authorized projects, based on the agreements taken by the members of the Committee in ordinary and extraordinary sessions, as the case may be.

c) Prepare the minutes of the Committee sessions and collect the signatures of the Committee members or their representatives, as the case may be, who participated in the session.

d) Keep control and follow-up of the compliance of obligations by ERPIs with authorized projects, as well as their applications to the Committee, through the Online System; of the amounts of fiscal incentives granted, as well as inform the Committee about the compliance with the approved agreements.

e) Act as a communication channel between the members of the Committee, as well as between it and the interested or contributing taxpayers and the responsible company for the investment project in the production or distribution of national cinematography. It may also request from the members of the Committee, the information and documentation necessary within the scope of their respective competencies for the application of the fiscal incentive.

f) Prepare and present to the Committee the information referred to in Article 189, fraction IV of the Income Tax Law, for the Committee to process its publication in the Official Gazette of the Federation and on the websites of the SC, IMCINE, SHCP, and SAT.

g) Notify the agreements, resolutions, and any other communication to the responsible companies for the investment projects in the production or distribution of national cinematography and to the interested and contributing taxpayers, as the case may be, in the terms set forth in these rules, as well as remit to the authorities that, in accordance with their attributes and powers, are competent, the promotions, notifications, and other requirements that administrative or judicial authorities make to the Committee, related to the fiscal incentive, for their attention, and

h) Those others instructed by the Committee and within its purpose.

III. Of the procedure for the granting of fiscal incentives

III.1 Of the registration process in the Online System

9. The sending of applications for investment projects to be included in the List of projects eligible for authorization shall be carried out through the Online System, in two periods per exercise, according to the following:

I. The first period, comprised between 00:00 hours, central time, from January 15 until 18:00 hours, central time, on February 5.

II. The second period, comprised between 00:00 hours, central time, from June 15 until 18:00 hours, central time, on July 5.

The responsible company for the investment project in the production or distribution of national cinematography shall enter the Online System and fill out the application form with information regarding the company itself and the investment project; in addition, it must attach, in the corresponding section, the digitized documents defined in these rules, as well as in the Operational Guidelines for the Evaluation and Monitoring of Investment Projects in the Production or Distribution of Cinematography, as the case may be, and in the General Requirements of responsible companies to apply for the EFICINE that shall be published on the websites of the SC, IMCINE, SHCP, and SAT.

The responsible company for the investment project in the production or distribution of national cinematography must comply with the following:

I. Indicate its Federal Taxpayer Registry.

II. Be up to date in the fulfillment of its tax obligations in terms of Article 32-D of the Federal Tax Code.

III. Not be in the circumstances referred to in Articles 69-B, fourth paragraph, and 69-B Bis, ninth paragraph of the Federal Tax Code.

IV. Not have incurred in previous exercises any of the causes for revocation provided for in these rules.

V. Not have filed a defense mechanism or any other administrative or jurisdictional procedure, promoted against a resolution of the Committee, except if they withdraw from them before submitting the application.

VI. The responsible company for the investment project in production, its partners, and the responsible producer that, at the time of registering their project, have two or more projects that have not been exhibited in cinema halls, film festivals, and/or technological platforms, software applications, and similar video services in Mexico in the modalities of subscription, rental, and/or sale referred to in rule 1, subsection k), shall not be beneficiaries of the fiscal incentive.

Responsible companies shall only enter the Online System one application per investment project in the production or distribution of national cinematography. In the event that more than one application is entered into the Online System for the same investment project, they shall be considered not submitted.

The responsible company for the investment project in the production or distribution of national cinematography shall sign through its e.firma the voluntary declaration and under oath, that the data and documents uploaded and registered in the Online System are lawful, reliable, verifiable, that it is up to date in the fulfillment of its tax obligations; and that it has read and accepts the terms and conditions set forth in these rules, in the operational guidelines, and in the general requirements of responsible companies to apply for fiscal incentives published on the websites of the SC, IMCINE, SHCP, and SAT, understanding that non-compliance may imply the revocation of the incentive authorization.

The sending of the application through the Online System shall be formalized and considered received, only when said application is duly signed with the e.firma of the responsible company for the investment project in the production or distribution of national cinematography. Once the above procedure is carried out, responsible companies shall not, by any means, send or upload additional information about the investment project, and the Online System will generate the receipt acknowledgment with a digital seal, which shall contain, among other data, date, time, and receipt folio assigned by the Online System.

The information and data entered into the Online System and not sent in accordance with what is established in this subsection shall be considered not submitted.

For the delivery of materials required as part of the application, the domicile of the Technical Secretariat of the Committee is located at Palacio Nacional, Building 4, Floor 1, Centro Neighborhood, Cuauhtémoc Municipality, C.P. 06000, Mexico City, on business days in a schedule from 9:30 to 13:30 hours central time.

10. At the close of the periods referred to in rule 9, the Technical Secretariat of the Committee shall remit to IMCINE the applications for investment projects in the production or distribution of national cinematography received from responsible companies through the Online System for their analysis and evaluation.

11. IMCINE, through the CE, shall analyze and evaluate the artistic, cultural, and cinematographic merits as well as the viability of the investment projects presented, in accordance with the Operational Guidelines in the Production or Distribution of National Cinematography, as the case may be.

To this effect, IMCINE shall remit to the CE the investment projects in the production or distribution of national cinematography referred to in rule 9, so that it may issue its recommendation regarding the artistic, cultural, and cinematographic merits as well as their viability.

Investment projects that in the immediately preceding period were included in the list of projects eligible for authorization referred to in rule 1, subsection m) and have not benefited from the application of the fiscal incentive, may resubmit their application, and IMCINE shall take into consideration for its evaluation the recommendation issued in the immediately preceding period by the CE.

The evaluation of investment projects in the production or distribution of national cinematography referred to in the preceding paragraph shall be valid for two subsequent periods: in the period in which it is issued and the immediately following one.

Investment projects in the production or distribution of national cinematography whose documentation has not been presented complete in accordance with what is established in the General Requirements shall not be evaluated by IMCINE.

IMCINE shall have thirty business days counted from the date of sending of the applications by

part of the Technical Secretariat of the Committee, to evaluate the investment projects. At the end of said deadline, IMCINE must send the respective evaluations to the Technical Secretariat.

The evaluation that IMCINE prepares on the investment project in the production or distribution of national cinematography in question must specify whether the investment project meets the artistic, cultural, and cinematographic merits, as well as the necessary viability to be included in the list referred to in subsection m) of Rule 1. Likewise, IMCINE will indicate the amount referred to in subsection o) of Rule 1.

The Committee will take note of the foregoing, in accordance with the Operational Guidelines cited in the first paragraph of this Rule.

The evaluation issued by IMCINE on the investment projects will not be binding on the Committee.

12. Projects that, according to the evaluation of artistic, cultural, and cinematographic merits, as well as their viability, are determined by IMCINE, in accordance with the recommendation of the CE, will be submitted to the consideration of the Committee so that, if applicable, it approves the list of projects and the amount susceptible of authorization referred to in subsections m) and o) of Rule 1, respectively, within the two months immediately following the closing of each of the periods referred to in Rule 9.

The Committee will publish the list of investment projects in the production or distribution of national cinematography susceptible of authorization, on the Internet pages of the SC, IMCINE, SHCP, and SAT.

Such publication will be solely informative, and therefore does not constitute an authorization for obtaining the fiscal incentive.

Investment projects that are not included in the list published on the aforementioned Internet pages will be understood as projects that do not meet the artistic, cultural, and cinematographic merits and are not viable to be considered as projects susceptible of being authorized in the period in which they were registered.

The Committee, through the Technical Secretariat, will notify the company responsible for the corresponding investment project of the evaluation of the investment project, within a deadline that will not exceed fifteen business days counted from the date of publication of the list of projects and amounts susceptible of authorization.

13. Taxpayers interested in contributing to any of the projects contained in the list of investment projects in the production or distribution of national cinematography susceptible of authorization referred to in Rule 1, subsection m), must register through the Online System, in two periods per fiscal year, according to the following:

I. First period, comprised between 00:00 hours, Central Time, on April 7 until 18:00 hours, Central Time, on April 30.

II. Second period, comprised between 00:00 hours, Central Time, on September 11 until 18:00 hours, Central Time, on October 4.

Once the list of projects susceptible of being authorized is published, interested taxpayers may request information from IMCINE about the projects and/or the video presentation (pitch) of the projects of their interest, so they must make their request to the email addresses eficineproduccion@imcine.gob.mx and eficinedistribucion@imcine.gob.mx.

Taxpayers interested in supporting an investment project in the production or distribution of national cinematography must log in to the Online System and opt to select the project or projects contained in the list of investment projects referred to in Rule 1, subsection m).

Once the investment project in the production or distribution of national cinematography is selected, they must fill out the application form and attach, in the corresponding section, the digitized documents defined in these Rules, as well as in the Operational Guidelines and in the General Requirements for interested taxpayers to apply for EFICINE that will be published on the Internet pages of the SC, IMCINE, SHCP, and SAT.

Interested taxpayers must comply with the following:

I. Indicate their Federal Taxpayer Registry key.

II. In the case of having authorization for the payment in installments of omitted contributions and their accessories, interested taxpayers will declare that they have not incurred the grounds for revocation referred to in Article 66-A, fraction IV of the Federal Tax Code, during the fiscal year immediately preceding that in which the fiscal incentive is intended to be applied.

III. Be up to date in the fulfillment of their tax obligations in terms of Article 32-D of the Federal Tax Code.

IV. Not be in the situations referred to in Articles 69-B, fourth paragraph, and 69-B Bis, ninth paragraph of the Federal Tax Code.

V. Not have incurred in previous exercises any of the grounds for revocation provided for in these Rules.

VI. Not have filed a means of defense or any other administrative or jurisdictional procedure, promoted against a resolution of the Committee, except if they withdraw from them before submitting the application.

Interested taxpayers will sign the voluntary declaration under oath that the data and documents uploaded and registered in the Online System are lawful, reliable, verifiable, that they are up to date in the fulfillment of their tax obligations; and that they have read and accepted the terms and conditions set forth in these Rules, in the operational guidelines, and in the general requirements for interested taxpayers to apply for fiscal incentives published on the Internet pages of the SC, IMCINE, SHCP, and SAT, understanding that non-compliance may imply the revocation of the incentive authorization, and if applicable, that they have not incurred the grounds for revocation referred to in Article 66-A, fraction IV of the Federal Tax Code, during the fiscal year immediately preceding that in which the fiscal incentive is intended to be applied.

After the foregoing, an email will be sent to the responsible company informing it about the interested taxpayers contributing to the investment project in the production or distribution of national cinematography and the corresponding amounts.

Prior to the closing of the registration period for interested taxpayers referred to in this Rule, the responsible company must log in to the Online System to verify the amount proposed by the interested taxpayer and, if in agreement, must sign the voluntary declaration via e.firma as jointly liable with the interested taxpayer(s), regarding the obligation established in Rule 34, first paragraph.

Once the voluntary declaration is received by the responsible company in the Online System, an email will be sent to the address manifested in its registration by the interested taxpayer, confirming the acceptance of the responsible company of the corresponding investment project.

The registration of interested taxpayers through the Online System will be formalized and considered received only when such application is duly signed via e.firma. Once the aforementioned procedure is carried out, the Online System will generate the receipt with a digital seal, which will contain, among other data, date, time, project name, and receipt folio assigned by the Online System.

Once the registration period in the Online System is concluded, as well as the process referred to in the previous paragraph, interested taxpayers will not, by any means, submit additional information.

The information and data entered into the Online System and not sent in accordance with the provisions of this Rule will be considered not presented.

14. The digitized documents attached in the Online System must be presented in PDF format. Each file may not exceed 40 megabytes (MB) and its title must be maximum 15 characters and must not contain commas, accents, ñ, &, or any other symbol.

Those digitized documents, through which the responsible company of the investment project or the contributing taxpayer establish a request or clarification to the Committee, must contain the handwritten signature, and be accompanied by a copy of the official identification of the person signing the document; therefore, they cannot be signed in the PDF format, using the "Fill or Sign" option or similar.

15. The correct filling out of the application and the proper integration of the documentation attached through the Online System, in terms of the provisions of Rules 9 and 13 of these Rules, of the operational guidelines referred to in Rule 13, first paragraph, and of the general requirements for applying for and following up on fiscal incentives published on the Internet pages of the SC, IMCINE, SHCP, and SAT, are the responsibility of the responsible company of the investment project in production and distribution applying and the interested taxpayer. The receipt made in the Online System of the application and other documentation does not prejudge its content nor the fulfillment of the applicants' obligations, nor does it constitute an evaluation and/or acceptance for obtaining the fiscal incentive.

III.2. Of the evaluation process of applications

16. According to the number of projects presented in each period, groups will be formed that evaluate a certain number of projects, in accordance with what is defined in the Operational Guidelines for investment projects in production or distribution, as applicable.

The members of the CE must not have a conflict of interest, nor be related parties, in the investment projects in the production or distribution of national cinematography that they evaluate in the period.

For the purposes of the previous paragraph, IMCINE will verify that councilors are not assigned to groups that evaluate projects in which such conflict of interest exists. Additionally, councilors must present to IMCINE a voluntary declaration under oath stating that they are not related parties of the projects they will evaluate. In case a conflict of interest is identified between councilors and the ERPIs, they cannot issue an opinion in the period in question, nor participate in the CEs in subsequent periods.

17. For the purposes of the provisions of Article 189, first paragraph of the Income Tax Law, at the closing of the registration periods for interested taxpayers referred to in Rule 13, the Committee, through the Technical Secretariat, will send to the SAT the information regarding the responsible companies of the investment projects that passed the technical evaluation and the interested taxpayers so that said Decentralized Agency, within the scope of its attributes and competencies, provides the Committee with the information and documentation on the income tax declared by the interested taxpayers, in the corresponding annual declarations for the fiscal year immediately preceding their application; as well as the information regarding the fulfillment of tax obligations of the responsible companies of the projects susceptible of authorization, according to the following deadlines:

a) First period: by the fifth business day of May of the corresponding fiscal year.

b) Second period: by the fifth business day following the closing of the registration period for interested taxpayers.

The SAT will have fifteen business days, counted from the date of receipt of the request by the Technical Secretariat, to send to the Committee the information referred to in the first paragraph of this Rule.

18. The applications made by the responsible companies and by the interested taxpayers will be submitted to the consideration of the Committee so that, if applicable, they are authorized by June 15 of each fiscal year, in the case of the first period; and November 15 of each fiscal year in the case of the second period, according to the following:

I. The Committee will authorize the application of the fiscal incentive considering the evaluation on the artistic, cultural, and cinematographic merits and the viability of the investment projects in the production or distribution of national cinematography prepared by IMCINE and the evaluation of the fulfillment of tax obligations of the responsible companies and of the interested taxpayers, carried out by the SHCP with the information provided by the SAT.

II. If during the procedure for granting the fiscal incentive, the Committee, based on the technical and/or fiscal evaluation, determines to make adjustments to the amount requested for the realization of the investment project in the production or distribution of national cinematography, the project may be authorized provided that the adjustment does not imply a decrease equal to or greater than 50% of the total cost of the investment project.

III. In the case that the investment projects in the production or distribution of national cinematography, according to the evaluation referred to in fraction I of this Rule, have the same artistic, cultural, and cinematographic merits and are viable, as applicable, the order in which the applications were formally sent will be taken into account, in accordance with Rule 13.

The responsible company of the investment project in national cinematography production must consider that the estimated date for the completion of the cinematographic work in the fiction category must not exceed two years, in the documentary category three years, and in the animation category five years following the fiscal year in which they were authorized. Likewise, the exhibition of the projects in any category must not exceed two years counted from the date of completion of the national cinematographic work.

In the case of investment projects in national cinematography distribution, the responsible company of the investment project must consider that the conclusion of the investment project must not exceed one year following the fiscal year in which it was authorized.

For the purposes of the previous paragraph, the conclusion of the project will be understood as the last date of its exhibition, regardless of the other obligations that must be fulfilled.

In the event that an investment project requests the application of the fiscal incentive for national cinematography distribution, which has previously obtained authorization for the fiscal incentive for cinematography production and is in the last year for its exhibition in terms of Rule 1, subsection k), it may be registered only when its exhibition date coincides with the date authorized by the Committee for the investment project in national cinematography production.

If during the procedure for granting the fiscal incentive, the competent authority determines that the information and/or documentation presented by the responsible company of the investment project in the production or distribution of national cinematography or by the interested taxpayers regarding the fiscal incentive, is false and/or does not match their records, databases, applications, files, or any other means of concentration of information or documentation, the Committee will agree that the responsible company of the investment project in the production or distribution of national cinematography or the interested taxpayer, as applicable, will not be subjects of the fiscal incentive in the fiscal year in which the falsity of the documents is proven or it is known that they do not match the records, databases, applications, files, or any other means of concentration of information or documentation of the competent authority, nor in subsequent fiscal years.

When the falsity or lack of match of the documents and/or information referred to in the previous paragraph is known by the Committee after the fiscal incentive has been granted, the procedure for revocation of the fiscal incentive will be initiated in accordance with these Rules. Regardless of the foregoing, the Technical Secretariat will give notice to the competent authority.

For the purposes of Article 189, fifth paragraph, fraction II, of the Income Tax Law, when there is a remainder of the amount to be distributed in the first period, it may be considered within the amount to be distributed in the second period.

III.3 Of the authorization of projects

19. The Committee, through the Technical Secretariat, will publish on the Internet pages of the SC, IMCINE, SHCP, and SAT, within five business days following the date of celebration of the Session, the investment projects in the production or distribution of national cinematography authorized, the responsible companies in the production or distribution of national cinematography, the contributing taxpayers, and the amounts of the fiscal incentives granted. The investment projects in the production or distribution of national cinematography and interested taxpayers that are not published on the aforementioned Internet pages will be understood as not authorized for the application of the fiscal incentive.

Likewise, it will notify the contributing taxpayers and the responsible company of the investment project in the production or distribution of national cinematography that corresponds, of the authorization of the fiscal incentive issued by the Committee, within a deadline that will not exceed fifteen business days counted from the publication referred to in the previous paragraph.

The Technical Secretariat will make known to the interested taxpayer and the responsible company of the investment project in the production or distribution of national cinematography the reasons why the Committee did not authorize the application of the fiscal incentive to the investment projects in question. Such resolution will be notified to the responsible company and to the interested taxpayers through the Online System.

20. The Technical Secretariat will carry out the notifications referred to in these Rules, through the Online System. For such purposes, the responsible companies, contributing taxpayers, and interested taxpayers will have assigned a notification consultation section, within the Online System, to which they can access via their e.firma and with the user and password they have previously registered to access said System.

When the applications are sent in the Online System, referred to in Rules 9 and 13, the Technical Secretariat will send, on a single occasion, to the email addresses of the interested taxpayers and of the responsible company of the investment project in the production or distribution of national cinematography, a confirmation email that will serve to corroborate the authenticity and correct functioning of the email addresses of the interested taxpayers and of the responsible company of the investment project in the production or distribution of national cinematography.

Interested taxpayers and the responsible company of the investment project in the production or distribution of national cinematography must declare via the same channel, within three business days following the receipt of the email referred to in the previous paragraph, that they accept receiving all notifications and communications related to the fiscal incentive through the email address provided at the time of their registration in the Online System.

In the event that interested taxpayers or the responsible company of the investment project in the production or distribution of national cinematography do not make the declaration referred to in the previous paragraph within the stated deadline, it will be understood that they accept receiving notifications and communications related to the fiscal incentive at the electronic address provided at the time of their registration in the Online System.

The user and password will be personal, non-transferable, and for confidential use, so interested taxpayers and the responsible company of the investment project in the production or distribution of national cinematography will be responsible for the use made of them, including the opening of the notification section.

Interested taxpayers and the responsible company of the investment project in the production or distribution of national cinematography that have assigned a notification consultation section, must review it within three business days following the day they receive an email from the Technical Secretariat sent to the email address they provided at the time of entering the fiscal incentive application through the Online System, in which they will be informed that they have a notification in the corresponding notification section.

In the event that interested taxpayers and the responsible company of the investment project in the production or distribution of national cinematography do not open the notification consultation section within the stated deadline, the electronic notification will be considered made on the fourth business day, counted from the business day following the day the aforementioned email was sent to them.

The notifications referred to in this Rule will be considered made when the electronic receipt is generated in which the date and time are recorded when interested taxpayers and the responsible company of the investment project in the production or distribution of national cinematography have entered the Online System, notification consultation section.

IV. Of the contributions and obligations of contributing taxpayers and the responsible companies of the investment project in the production or distribution of national cinematography

21. The right to apply the fiscal incentive is personal to the contributing taxpayer to whom it is granted and cannot be transmitted to another person nor as a consequence of merger, spin-off, or any other legal act. The responsible company of the investment project in the production or distribution of national cinematography benefited with the fiscal incentive is the only one obliged to comply with what is established in the applicable provisions for its completion and exhibition, so no other company can request a fiscal incentive for the same investment project. The responsible producer of the project cannot be substituted and

will maintain that status until the exhibition has been completed.

22. Prior to the date of the contribution made to the investment project in the production or national cinematographic distribution in question by the contributing taxpayer, this taxpayer or its related parties may not be related parties of the company responsible for the investment project in the production or distribution, nor of its related parties.

23. The contributing taxpayer or its related parties may not provide personal services to the company responsible for the investment project in the production or national cinematographic distribution, nor to its related parties, during the execution of the investment project in question.

24. The company responsible for the investment project in the production or national cinematographic distribution, or its related parties, may not provide personal services to the contributing taxpayer or its related parties during the execution of the investment project in question. The fiscal incentive may not be used to cover the payment of fees, compensation, salaries and/or wages of natural persons who, at the same time, have the status of company responsible for the investment project in the production or national cinematographic distribution, regardless of whether they provide their services to the investment project.

25. The documentation delivered to the Committee for the granting and monitoring of the fiscal incentive in question, as well as the documents that said Committee directs to the company responsible for the investment project in the production or national cinematographic distribution, to the contributing taxpayers, shall form part of their accounting and shall be considered as confidential or reserved information in accordance with what is provided in the General Law of Transparency and Access to Public Information, the Federal Law of Transparency and Access to Governmental Public Information, the Federal Tax Code and their respective regulations.

26. The companies responsible for the investment project in the production or national cinematographic distribution, within the 20 business days following the publication referred to in the first paragraph of rule 19, must inform the Committee of the bank account data that will be used exclusively for the deposit and expenditure of the resources obtained from the fiscal incentive authorized to carry out the investment project in question, which must be in the name of the responsible company. The contributing taxpayers must make their contributions no later than the last day of the fiscal year in which they were authorized, from a bank account in their name, by electronic transfer to the bank account referred to in the previous paragraph. The company responsible for the investment project in question must begin the application of the incentive resources no later than within the 20 business days following the transfer of resources by the contributing taxpayers referred to in the previous paragraph. The start date of the application of the incentive must be reported by the company responsible for the investment project in the first semi-annual report referred to in subsection b) of rule 27 for the case of investment projects in national cinematographic production and subsection b) of rule 28 for the case of investment projects in national cinematographic distribution, as applicable.

27. The company responsible for the investment project in national cinematographic production that has received contributions from the contributing taxpayer must present to the Technical Secretariat of the Committee, through the Online System and sign with their e.firma, the following:

a) Copy of the transfer receipt issued by the financial institution in question for the contribution made by the contributing taxpayer to the company responsible for the investment project, which must comply with what is stated in rule 26, and must be presented within fifteen calendar days following the date of the corresponding contribution. The date of the transfer receipt must correspond to the fiscal year in which the authorization for the application of the fiscal incentive is obtained.

b) Semi-annual progress reports of the investment project, which will be presented within the first ten business days of the months of January and July of each fiscal year and until the first final copy is obtained.

c) Within thirty calendar days following the date of completion of the national cinematographic production, a notice in free writing informing:

i. The date of completion of the cinematographic film.

ii. The definitive format of the first final copy, which must be in 35 mm or its equivalent professional digital format or in any applicable format or medium, with equal or superior characteristics.

iii. The laboratory or place of storage of the corresponding negative or its equivalent professional digital format.

iv. The title of the corresponding cinematographic film.

With the notice referred to in this subsection, a technical sheet of the national cinematographic production must be sent jointly, in accordance with the characteristics established for such effect in the operational guidelines, containing information relative to the script, production, company responsible for the investment project, direction, photography, editing, sound design, musicalization, art direction, production companies, cast of main characters, and the definitive cost thereof.

Upon concluding the investment project in national cinematographic production, the responsible company must have its final copy for exhibition and attend to matters related to the preservation of the cinematographic work, in accordance with the formats and requirements established for such effect in the corresponding operational guidelines.

d) Within sixty calendar days following the date of the exhibition of the film in cinemas and/or film festivals and/or technological platforms, computer applications and similar, of video in Mexico in the subscription, rental and/or sale modalities referred to in rule 1, subsection k) of these rules, a notice in free writing informing:

i. The premiere date;

ii. The definitive title of the corresponding cinematographic film;

iii. For the case of projects exhibited in cinemas: the box office results obtained during the first month from its exhibition regarding the number of spectators, number of screenings, and, if applicable, the venues in the country where the film was exhibited, as well as the amount collected;

iv. For the case of projects exhibited on technological platforms, computer applications and similar, of video in Mexico in the subscription, rental and/or sale modalities: number of views and royalties; and

v. Participations in festivals, nominations for awards and the awards obtained.

Non-compliance with the obligations established in this rule within the deadlines indicated implies the occurrence of the revocation cause established in rule 33, subsection e) of these general rules.

28. The company responsible for the investment project in national cinematographic distribution that has received contributions from the contributing taxpayer must present to the Technical Secretariat of the Committee, through the Online System and sign with their e.firma, the following:

a) Copy of the transfer receipt issued by the financial institution in question for the contribution made by the contributing taxpayer to the company responsible for the investment project, which must comply with what is stated in rule 26 and must be presented within fifteen calendar days following the date of the corresponding contribution. The date of the transfer receipt must correspond to the fiscal year in which the authorization for the application of the fiscal incentive is obtained.

b) Semi-annual progress reports of the investment project in national cinematographic distribution, which will be presented within the first ten business days of the months of January and July of each fiscal year and until the date of conclusion of the distribution project.

c) Final report: it will be presented within sixty business days following the date of conclusion of the distribution project. Said report must contain what is stated in the operational guidelines. Non-compliance with the obligations established in this rule within the deadlines indicated implies the occurrence of the revocation cause established in rule 33, subsection e) of these general rules.

The IMCINE will present a report to the Committee, no later than in the month of March of each year, on the benefits associated with the fiscal incentive to national cinematographic production and distribution, corresponding to the immediate previous fiscal year, which shall contain: films exhibited and distributed, box office results, number of attendees with or without paid ticket, the awards and recognitions obtained by them, and number of views and royalties, in the case that the exhibition was carried out through projects exhibited on technological platforms, computer applications and similar, of video in Mexico.

30. The contributing taxpayers benefiting from the fiscal incentive, through the companies responsible for the investment project in the production or national cinematographic distribution, no later than within sixty business days following the date of completion of the national cinematographic production or distribution, must present to the Technical Secretariat of the Committee, through the Online System, a report prepared by a public accountant registered with the SAT in accordance with article 52 of the Federal Tax Code in relation to article 52 of its Regulations, through which they issue an opinion and certify that the amount of the incentive resources authorized to the contributing taxpayer was exclusively applied in each of the expense concepts incurred for the realization of the investment project in the production or national cinematographic distribution, and that the date of issuance of the digital fiscal receipts by Internet is posterior to the date of transfer of the resources obtained by the incentive by their (their) contributing taxpayer(s), in accordance with the applicable tax legislation and the audit standards that regulate the capacity, independence and professional impartiality of the public accountant.

For the issuance of the report, the public accountant must verify that there are digital fiscal receipts by Internet or fiscal receipts issued by residents abroad without permanent establishment in Mexico, which cover the expenses incurred, making such mention in the body of the report they formulate; such receipts must comply with what is established in articles 29 and 29-A of the Federal Tax Code or, if applicable, rule 2.7.1.14. of the Fiscal Miscellaneous Resolution of the corresponding fiscal year, or that which replaces it, respectively.

The report must contain the registration number with the SAT of the public accountant who issues it and, if applicable, the name of the firm to which it belongs.

At the time of issuing the report, the public accountant must not be sanctioned or suspended by the SAT nor have their registration cancelled by said authority.

Attached to the report referred to in this rule, a breakdown of the sources of financing and the expenses of the investment project in the production or national cinematographic distribution must be presented, completely and analytically filling out the Excel format named "Breakdown of income and expenses of the investment project", available on the Internet pages of the SC, IMCINE, SHCP and SAT, and sent through the Online System.

In the event that the public accountant determines that there are recurring expenses that are not in the concepts of the relationship "Breakdown of income and expenses of the investment project", and that can be attributed to specific concepts, they may include up to five new concepts. If in the aforementioned relationship, there is a concept named "other expenses" in which expenses that cannot be classified in any concept contained in said relationship are included, this may not exceed 10% of the total amount of expenditures.

Expenses related to contingency or of the same nature, regardless of their denomination, must be broken down and identified by the type of contingency they cover. In case such contingency has not occurred, the expenditure concepts of the investment project in the production or national cinematographic distribution in which they were applied must be reported.

Modifications to the financial scheme and/or budget in international co-productions must respect the percentages established in subsection u), rule 1, of these Rules.

31. Any modification to the investment projects in the production or national cinematographic distribution, related to technical aspects, such as critical path, director, budget, financial scheme, and, if applicable, distributor, subsequent to the authorization of the fiscal incentive, must be reported through the Online System by the company responsible for the investment project in the production or national cinematographic distribution for its authorization. The members of the Committee will evaluate such requests within the scope of their attributes and, if applicable, issue the corresponding recommendation.

Only the change of distributor may be authorized when it is a person distinct from the company responsible for the investment project in national cinematographic distribution. The Committee, in its next session, will analyze and evaluate the requested modification and notify the company responsible for the investment project in the production or national cinematographic distribution in accordance with rule 20 of these rules, whether the requested modification is appropriate or not.

The company responsible for the investment project in the production or national cinematographic distribution may only present a new request for the application of the fiscal incentive for the same investment project, when it proves and justifies to the Committee that there is an increase in the previously authorized cost, and that such increase derives from acts or facts unrelated to the company responsible for the investment project or is for artistic or cinematographic reasons.

32. The contributing taxpayer, through the company responsible for the investment project in the production or national cinematographic distribution, must inform the Committee of any modification to the annual declaration considered in their request for the application of the incentive that they make subsequent to its authorization, which must be uploaded to the Online System. The Committee in its next session will analyze and evaluate the information and notify the company responsible for the investment project in the production or national cinematographic distribution, in accordance with rule 20 of these rules, what is deemed appropriate.

V. On the causes and procedure for revocation of the authorization for the application of the fiscal incentive

33. The authorization for the application of the fiscal incentives will be revoked by the Committee when:

a) The film resulting from the investment project in national cinematographic production is not exhibited in cinemas, film festivals and/or technological platforms, computer applications and similar, of video in Mexico in the subscription, rental and/or sale modalities within a period of two years counted from the estimated date for its completion, in accordance with what is provided in the second paragraph of rule 18, except for causes not attributable to the company responsible for the investment project in national cinematographic production. In such case, this must prove said causes before the Committee within fifteen business days following the end of the mentioned deadline.

b) The distributing company that does not comply with the exhibition in commercial, cultural or mixed circuits of the national cinematographic film(s) in the terms established in the operational guidelines in distribution, in accordance with what is provided in the third paragraph of rule 18, except for causes not attributable to the company responsible for the investment project in national cinematographic distribution. In such case, this must prove said causes before the Committee within fifteen business days following the end of the mentioned deadline.

c) It has been determined by the competent authority that the information and/or documentation provided to the Committee by the contributing taxpayers or by the company responsible for the investment project in question, is false or does not match their records, databases, applications, files or any other means of concentration of information or documentation.

d) The contributing taxpayer or the company responsible for the investment project in the production or national cinematographic distribution commits fiscal crimes, regardless of the sanctions that apply, for which there is a final resolution.

e) Compliance with what is provided in any of the rules is not met.

The Technical Secretariat of the Committee will notify the contributing taxpayer and the company responsible for the investment project in the production or distribution of the revocation determined by the Committee, in accordance with rule 20 of these rules.

34. In case of revocation of the authorization for the application of the fiscal incentive in question, the contributing taxpayer must pay, within the month following the date of notification of the revocation, the income tax that would have resulted if the fiscal incentive had not been applied. The resulting tax will be updated for the period comprised from the month in which the declaration in which the fiscal incentive was applied was presented until the month in which the corresponding payment is made, in accordance with article 17-A of the Federal Tax Code. In addition, the contributing taxpayer must cover surcharges for the same period in accordance with article 21 of the cited Code.

The contributing taxpayer to whom the authorization for the application of the fiscal incentive in question has been revoked, may not be subject to the fiscal incentive in subsequent fiscal years. The company responsible for the investment project in the production or national cinematographic distribution with respect to which the authorization for the application of the fiscal incentive in question has been revoked in accordance with these rules, may not be considered as responsible for an investment project in the production or national cinematographic distribution in subsequent fiscal years.

35. For the effects of what is provided in rule 33, the Committee, the contributing taxpayer and the company responsible for the investment project in the production or national cinematographic distribution, will be subject to the following:

a) The Committee will issue an agreement through which it indicates the facts or circumstances for which the revocation of the fiscal incentive in question is appropriate.

b) The content of the agreement referred to in the previous subsection will be notified, in accordance with rule 20 of these rules, by the Technical Secretariat of the Committee to the contributing taxpayer and to the company responsible for the investment project in the production or national cinematographic distribution.

c) The contributing taxpayer and the company responsible for the investment project in the production or national cinematographic distribution will have a period of twenty business days counted from the one in which the agreement referred to in subsection a) above is notified to present through the Online System, if applicable, the documentation they consider that disproves the facts or circumstances set forth in the same.

d) When the contributing taxpayer and the company responsible for the investment project in the production or national cinematographic distribution present the documentation that disproves the facts or circumstances set forth in the agreement referred to in subsection a) above, within the deadline referred to in subsection c) of this rule, the Committee will issue, if applicable, an agreement ruling on the compliance of the contributing taxpayer and of the company responsible for the investment project in question.

e) When the contributing taxpayer and the company responsible for the investment project in the production or national cinematographic distribution do not disprove the facts or circumstances set forth in the agreement referred to in subsection a) above, within the deadline referred to in subsection c) of this rule, the Committee will issue an agreement ruling on the appropriateness of the revocation of the incentive, proceeding in accordance with rule 34.

f) Once the payment of the income tax has been made in accordance with rule 34, the contributing taxpayer and the company responsible for the investment project in the production or national cinematographic distribution must present before the Technical Secretariat of the Committee, the supporting documentation of the corresponding payment within a period not greater than thirty calendar days.

TRANSITIONAL PROVISIONS

First. This Agreement will enter into force the day following its publication in the Official Journal of the Federation.

Second. The Agreement by which the General Rules for the Application of the Fiscal Incentive to Projects for the Production and Distribution of National Cinematography are issued, published in the Official Journal of the Federation on December 24, 2020, is repealed.

Third. For the purposes of compliance with the obligations established in the Agreement repealed by this instrument, the contributing taxpayers and the companies responsible for the investment projects in the production or national cinematographic distribution previously authorized by the date of entry into force of this Agreement, will be subject to the General Rules for the Application of the Fiscal Incentive to Projects for the Production and Distribution of National Cinematography contained in this Agreement.

Respectfully,

Mexico City, December 27, 2023.- The Titular Representative of the Mexican Cinematography Institute, María Luisa Gabriela Silvia Novaro Peñaloza.- Rubric.- The Substitute Representative of the Secretariat of Finance and Public Credit, Karina Ramírez Arras.- Rubric.- The Titular Representative of the Secretariat of Culture, Marina Núñez Bespalova.- Rubric.- The Titular Representative of the Service of

Tax Administration,

Irene Salomo Rojas. - Rubric.

In the document you are viewing, there may be text, characters, or objects that are not displayed correctly due to conversion to HTML format, so we recommend always taking the digitized image of the DOF or the PDF file of the edition as a reference. The content, format, and scope of published documents are the strict responsibility of their issuer.

INQUIRY

BY DATE

Do

Lu

Ma

Mi

Ju

Vi

Sá

INDICATORS

Exchange Rate and Rates as of 26/08/2026

DOLLAR

16.9460 UDIS

8.807698 TIIE 28 DAYS

6.7559% TIIE 91 DAYS

6.7931% TIIE 182 DAYS

6.8474% TIIE DE FONDEO

6.50%

See more

SURVEYS

Did you like the new look of the Official Federal Gazette website?

No

Yes

Official Federal Gazette

Río Amazonas No. 62, Col. Cuauhtémoc, C.P. 06500, Mexico City Tel. (55) 5093-3200, where you can access our services menu

Electronic address: dof.gob.mx

113

LEGAL NOTICE | SOME RIGHTS RESERVED © 2026