By: Leslie Ortiz Martinez
A reality that concerns us all is the serious damage to the environment that has been wrought over years of bad environmental practices. That is why certain governments in the world have implemented different incentives so that both individuals and companies contribute to improving the environment.
Such is the case of Mexico City, whose Fiscal Code contemplates different fiscal benefits for natural or legal persons who carry out actions to mitigate environmental deterioration.
The aforementioned Code contemplates 4 assumptions under which, individuals or legal entities residing in Mexico City could have as a consequence reductions in taxes on payroll, property, or rights for water supplies, as appropriate, as explained below:
1.- Recycling or Reprocessing of Solid Waste.
Individuals or legal entities that carry out recycling business activities or that in their operation reprocess part of their generated solid waste, will be entitled to a reduction in Payroll Tax, which can range from 20 to 40 percent, depending on the percentage. of solid waste that they reprocess or recycle.
2.- Solar Panels and Rainwater Harvesting.
Owners of homes or real estate for residential use who install and use devices such as solar panels, and rainwater harvesting systems or other eco-technologies that prove a decrease of at least 20%, in energy and/or water consumption drinking water or the treatment and reuse of the latter, may obtain a reduction of up to 20% of the Water Supply Rights determined by the Water System.
3.- Programs for the Improvement of Environmental Conditions.
Companies or institutions that have verifiable programs to improve environmental conditions will be entitled to a reduction with respect to the Payroll Tax, which can range from 20 to 40 percent depending on how much their normal operating conditions decrease.
4.- Technologies, Systems, Equipment and Preventive Materials or Pollutant Emissions Reducers.
Industrial or service companies located in Mexico City that acquire, install and operate technologies, systems, equipment and materials or carry out actions that prove to prevent or reduce polluting emissions established by official Mexican and environmental standards for Mexico City , they will be able to obtain a reduction with respect to the Predial Tax of 10 to 20 percent depending on the percentage in the reduction of their polluting emissions.
Constancy.
For the purposes of the reductions, the companies or institutions must obtain a certificate issued by the Ministry of the Environment, specifying, depending on the case: (i) the result of the accreditation of its Environmental Self-Regulation and Audit Program, in the one indicating the percentage of solid waste that is reprocessed or recycled and the total amount of the investment made to carry out the activities that are the reason for the reduction; (ii) the type of devices they have and the benefits they represent for saving electricity and/or water; (iii) the result of the accreditation of their environmental self-regulation and audit program, the type of programs they carry out and the benefits they represent to improve the environment, as well as the technology they apply to promote the preservation, restoration and environmental improvement of Mexico City. In addition, for the reduction of the Property Tax, the corresponding evaluation of pollutant emissions must be presented.
Restrictions.
The reductions will be made effective in the Tax Administrations or through the means established by the Secretariat of Administration and Finance, if applicable, before the Water System, and will be applied to the contributions, if applicable, to the updated tax credit, provided that the respective contributions have not yet been paid, since the refund or compensation will not proceed with respect to amounts that have been paid. Likewise, they will be applied during the current fiscal year, and for the tax credits generated in said year, otherwise, your right to assert it later will expire. The one corresponding to the Predial Tax will only be applied with respect to the property where the activities are carried out, reason for which the reduction is granted.
It is important to mention that said benefits will not proceed when taxpayers have complaints or complaints filed by the tax authority, in the same way, in the event that the authority detects that taxpayers provided false data or documentation, it will notify the competent authority to the application of the corresponding penal sanctions.
