This deduction of 35% over the total revenues is also known as “blind deduction”. The second option consists of considering the difference from decreasing a deduction of 35% from total revenues as a tax profit and in addition, property tax may be deduced in lieu of other deductions listed on the above paragraph. The first option consists on considering the difference between decreasing deductions authorized by the law from revenues, this includes: payment of property tax, maintenance expenses, real interest paid, salaries, commission, etc., insurance and investment in construction. Option 1 – income less authorized deductions This is relevant as those individuals receiving income from leases in Mexico may determine their tax profit with two different methods and this shall later be used as grounds for the calculation of taxes: With this definition, the Law leaves no doubt as to the definition of income from leases. Those obtained from lease or sub-lease and in general, for granting the temporary use of real property for a price, in any manner. With regards to Chapter III “income from leases (…)”article 114 sets forth what shall be understood as rendering the temporary use of real property: (author’s emphasis) Income Tax Act establishes that individuals shall determine and pay Income Tax depending on the tax regime they are under, that is, depending on the activities they perform, for example: wages (Title IV, chapter I), business activities (Title IV, chapter II), income on leases (Title IV, Chapter III), revenues from the sale of goods (Title IV, chapter IV), and so forth. Lodging services through technology platforms. Next, we shall proceed to briefly explain each, however it is important to mention that the following analysis is applicable only to those individuals who, as part of their economic activities, provide lodging services through technology platforms such as: Airbnb, Trivago, Expedia, etc, as these new criteria are addressed to this sector of economic activities offered by individuals in Mexico.Ĥ1/ISR/NV. These are subject to payment of Income Tax” and criterion number 10 of the Value Added Tax Act, titled: “Real estate used for lodging, through environmental platforms.” On August 21 st, 2019 the Mexican tax authority published the first amendment resolution to the Miscellaneous Tax Resolution (MTR) for 2019, which includes amendments to Exhibit 3 thereof titled “Non-mandatory Criterion of Tax Provisions” as part of these amendments, criterion number 41 was added to the Income Tax Act, titled “Lodging Services through technology platforms.