On September 2, 2024, a decree was published in the Official Gazette of the Federation granting tax incentives to encourage the use of electronic payment methods (the Decree) applicable to “El Buen Fin,” which will take place from November 15 to 18, 2024.

The Decree grants a tax incentive to taxpayers who, through a lottery, reward cardholders who make purchases of goods or services during that period using electronic payment methods such as bank and department store cards. The amount of the prizes awarded may be credited against the taxpayer’s income tax or the tax withheld from third parties, provided that the total amount does not exceed 500 million pesos.

Additionally, this incentive may apply to purchases of goods or services made with service cards operated in Mexico by commercial entities not belonging to the financial system, which, through a contract regulating their use, allow their individual users to use them in various affiliated businesses different from the card issuer.

The crediting against the income tax owed or the tax withheld from third parties can be made, until exhausted, starting from the month following the delivery of prizes to each winner and once the information required by the SAT has been submitted according to general rules.

Regarding local contributions, the Decree establishes that the state taxes generated from the prizes obtained in the lottery held by the SAT will be covered by the Federation to the federal entity where the prize is awarded, following the procedures provided in the relevant laws.

Finally, it is established that beneficiaries will not be required to present the notice established by the Federal Tax Code regarding the crediting of tax incentives, and the amount of the prizes awarded to individuals from the lottery will not be considered taxable income for income tax purposes.

We provide you with the link where this publication can be consulted:

DOF – Diario Oficial de la Federación

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