On Nov. 12, MEX GVT granted referral of interest in swap operations.
MEX GVT issued a decree re deferral for 28 days of accumulation of interest obtained in swap operations whose underlying asset is the interbank equilibrium interest rate.
Overview
Natural and legal persons who are residents in Mexico and abroad, subject to payment of income tax and are party to a swap can defer the swap related interest for 28 days.
The conversion will be deemed to have been made when the swap is converted into a second exchange swap and third exchange swap with specified ates and maturities.
Derivative financial transactions will be considered as single integrated derivative transaction, maturity of which will correspond to that of the third exchange transaction
Deferral may be made if the transactions have the character of standardized derivative operation, cleared and settled in a clearing house that acts as a central counterparty.
Also may be deferred if persons who are parties to the derivatives contracts that make up the integrated derivative financial operation are the same at time of the conversion.
The conversion and maturity of the swap are considered as one more settlement of the integrated operation, and the cumulative or deductible interest must be calculated.
The deferral will be terminated at the time of settlement following the conversion or after the maturity of the swap and disposal of the rights or obligations in the contracts.
Decree enters into force on the day following its publication in the Official Journal of the Federation, and the conversion must also be made no later than Dec. 31, 2024.
Effectiveness
Decree enters into force on the day following its publication in the official gazette.
