On May 9th, new tax benefits for Mexican taxpayers known as the “Primary Sector” were published in the Official Journal of the Federation. The Primary Sectorincludes agricultural, forestry, ranching, or fisheries, as well as the cargo transportation, passenger transportation and related transportation sectors, to be applied during fiscal year 2008. Such benefits include granting easier documentation and management of deductions for purposes of Mexico’s Income Tax (Impuesto Sobre la Renta, or ISR), Single Rate Business Tax (Impuesto Empresarial a Tasa Única, or IETU) and Value Added Tax (Impuesto al Valor Agregado, or IVA). In this regard, the new decree provides common benefits for each sector, such as: (i) for purposes of the ISR and IETU, taxpayers may deduct expenses that otherwise do not meet the documentation requirements of Mexican tax laws, which could be related to labor services and necessary expenses for conducting their business activities; (ii) benefits allowing the deductibility of gasoline and diesel fuel; and (iii) rules that favor the treatment of salary credits contained in the IETU Law, as well as IETU credits. Further, the decree provides benefits in each sector, such as exemption from ISR or IETU for the Primary Sector, given such Sector includes basic activities and services, provided taxpayers comply with the requirements specified in the decree. Regarding the transportation sector, benefits regarding the management of cash, package services, and tax receipts are provided, among others. In general, the decree covers various technical rules in the legal and accounting area and offers various sectors of the economy a simplified process for meeting their tax obligations.