Our partner Óscar López Velarde and associates Samantha Oseguera, and Luis Juárez, explore in this article published in Thomson Reuters' Puntos Finos magazine, how in Mexico the tax deductibility of the commitment fee in credit contracts has been improperly analyzed by the mexican courts, disregarding the indispensability they have to ensure access to lines of credit necessary for the development of various businesses. 

Furthermore, our experts analyze, through the case of Pemex International's hydrocarbon trading company (PMI), how this judicial pronouncement could considerably reduce the operational profitability of similar companies. An evaluation of this nature can trigger adverse consequences not only for the company paying this fee but for the entire business sector that requires access to flexible lines of credit.

"In general terms, the commitment fee has become a standardized practice both nationally and internationally, being a common requirement in revolving credit contracts and term loan agreements with availability periods."

 We invite you to download the full article to learn more about this topic (only available in Spanish).

 In case of any questions, please contact our experts in the Tax practice area (see details below).