1. ©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C. First Job Incentive Héctor Silva WMTA Breakfast meeting December 15, 2010

2. ©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C. 2Footer (edita este texto en la opción Insert > Header & Footer > Apply to all) Income Tax First Job Incentive Objective: This incentive is to promote to the job offer by granting an additional deduction to whomever invest in new permanent jobs in Mexican territory.

3. ©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C. Income Tax First Job Incentive Benefits: Employers who hire workers for their first job for newly created positions shall be entitled to additional income tax deductions to Income Tax. Applicable in advance payments and annual tax return. This additional deduction is not applicable for statutory employee profit sharing (PTU), or flat tax (IETU) because it´s a minimum tax 3Footer (edita este texto en la opción Insert > Header & Footer > Apply to all)

4. ©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C. Income Tax First Job Incentive Concepts: Worker´s first job: Whomever has not been previously registered with the Social Security (IMSS). Newly created position: Any additional registry with the Social Security mandatory regime during the tax year. 4Footer (edita este texto en la opción Insert > Header & Footer > Apply to all)

5. ©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C. Income Tax First Job Incentive The newly created positions must remain available for a period of at least 36 continuous months from the time they are created. Shall be hold by a worker first job continuously for a period of not less than 18 months. If the worker has an employment relationship is terminated without liability to the employer, shall be replaced by a other worker of first job and keep the newly created position for 36 months. Applicable only in the case of workers who are paid up to 8 times the minimum wage of their geographic area. When the employer does not take advantage of the additional deduction when had the right to do it, they will lose the benefit.. 5Footer (edita este texto en la opción Insert > Header & Footer > Apply to all)

6. ©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C. Income Tax First Job Incentive Requirements: Enroll employees in the new job registry Comply with SS regulations and tax withholdings Not to have tax credits pending of payment with the tax authorities File the notice to exercise the option and the monthly information to the Tax Authorities. Each newly created position will remain existent for a period of at least 36 continuous months, the employer should keep the newly created position busy for a worker's first job at least 18 continuous months Carry out the Social Security obligations. 6Footer (edita este texto en la opción Insert > Header & Footer > Apply to all)

7. ©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C. Monthly report to Tax Authorities (SAT): From Employer: 1.Taxpayer ID Number (RFC) 2.Records from Social Security associated with the Employer Taxpayer ID Number From the First Job Workers: 1.Full Name (First Name, last name) 2.Social Security Number 3.Population Registry (CURP) 4.Amount of Comprehensive salary with which the first job workers are registered in the Social Security. 5.Amount of social security contributions paid Additional deduction amount applied in the month concerned From the first job workers had been replaced: Social security number of the worker replacement and the worker replaced 7Footer (edita este texto en la opción Insert > Header & Footer > Apply to all)

8. ©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C. Income Tax First Job Incentive 40% of the Income Tax without exceed the amount of taxable income, determined as follows: (DS* x NWD**) – [(CS x NWD) x 0.30] x 0.40*** 0.30 * DS, Dayly Salary for purposes of the Social Security Law ** NWD, Number of Worked Days during the month or year *** For the 40% Additional Deduction Reduction by 25% of the benefit if the new jobs are created a year after. 8Footer (edita este texto en la opción Insert > Header & Footer > Apply to all)

9. ©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C. OperationConceptAmount Comprehensive Salary (1) $ 459.68 (x)Number of Worked Days from period30 (=)Comprehensive Salary from period $ 13,790.40 Comprehensive Salary from period $ 13,790.40 (x)Income Tax Rate30% (=)Comprehensive Salary from period Income Tax $ 4,137.12 Comprehensive Salary from period $ 13,790.40 (-)Comprehensive Salary from period Income Tax $ 4,137.12 (=)Article 230 Fraction I Total $ 9,653.28 (/)Current Income Tax rate30% (=)Article 230 Fraction II Total $ 32,177.60 (x)Rate of Additional Deduction40% (=)Maximum Amount of Additional Deduction from period $ 12,871.04 Income Tax Benefit $ 3,861.31 9Footer (edita este texto en la opción Insert > Header & Footer > Apply to all)

10. ©2010 Galaz, Yamazaki, Ruiz Urquiza, S.C. Héctor Silva 011 52 664 6227840 hsilva@deloittemx.com