The reforms are intended to clarify the interpretation to the term "barrel of oil equivalent" to give certainty to the calculation of the deductions allowed in each case. It also aims to amend the definition of the adjustment mechanism to determine economic conditions relating to fiscal terms of contracts.
It seeks to include in the license agreements a flexible scheme that allows to design a mechanism for easier adjustment, either through the amendment of the applicable rate on the value of oil, or the final amount of the consideration resulting from the application of that rate and only applies to license agreements which does not generate regressive tax purposes capture oil revenues.
Similarly, it is proposed that the joint operating agreement the percentage of the share corresponding to each of the members of the consortium and the mechanisms by which such participation may vary during the term of the contract is reflected.
It is intended to establish the operator to issue tax receipts to the members of the consortium that cover the costs incurred in each period arising from the execution of the contract that each member has effectively covered; also that the operator can only deduct the proportionate share of the total amount covered in tax receipts as always they correspond to the costs actually covered in each period.
And seeks to clarify that the Secretariat of Finance and Public Credit may instruct the Tax Administration Service, to provide to that Secretariat, support the verification of transactions and derivative accounting records of contracts for exploration and extraction of hydrocarbons, both through audits and visits to contractors under administrative agency that has the experience as well as technical and operational resources to carry out these functions.
Articles Reform: Reform articles 3, 10, 32, 41, 42 and 63 of the Revenue Law on Hydrocarbons.
Vote in the Chamber of Deputies: Approved by the Chamber of Deputies on October 18, 2016, with 360 votes in favor and 53 against.