Tax Alert: Advertisement expenses are not deductible for licensees of a trademark

The Superior Chamber of the Tax Court (the “Tax Court”) recently ruled that advertisement expenses for trademarks are not deductible for taxpayers that do not own the publicized trademarks and that only have the use of such trademark by a non-exclusive license agreement. The rationale of the Tax Court was that publicity or advertisement expenses aim to bolster the value of a trademark owned by the licensor and not the licensee. Therefore, the licensor is the one who should incur in publicity expenses of its brand and not the licensee who does not own it. Consequently, if a licensee incurs in such expenses, they would not be strictly indispensable and therefore not deductible under the income tax law as they are not directed for promoting a brand of its property.

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Ibarra del Paso y Gallego announces enhanced service offering with new Practice Areas and arrival of new Partners and Of Counsel

In a bold move forward, Mexican law firm Ibarra, del Paso y Gallego has hired several new Partners and Of Counsel as it expands into new practices areas, reflecting an ambitious growth agenda that positions it firmly in Mexico’s mid-market, full service segment.

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Tax incentives in the Northern Border Region

The insecurity and widespread violence that have characterized the northern border of Mexico (the “Border”),[1]have become one of the most urgent and important matters to be addressed by the Mexican government, as such problems have unleashed an economic slowdown along the 180 kilometers of the Border shared with the United States of America.

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Tax incentive in the northern border region

In order to establish mechanisms that strengthen the economy of taxpayers in the northern border of the Country, to stimulate and increase investment, as well as to promote productivity and contribute with the creation of employment sources, on Monday December 31st 2018 and on Monday, January 7th 2019, the decree on tax incentives in the northern border region (the “Executive Order”) and the anticipated revenue rules for applying the Executive Order (the “Rules”) were published. The Executive Order and the Rules establish benefits pertaining to income (Impuesto Sobre la Renta “ISR”) and to value added taxes (Impuesto Sobre el Valor Agregado “IVA”):

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