On 18 August 2017, Mexico published a Decree in the Official Gazette that provides increased deduction limits under the Hydrocarbon Revenue Act in order to incentivize and support hydrocarbon production. The Decree entered into force the day after it was published and provides the following increased limits for cost, expense, and investments based on the percentage of the annual value of hydrocarbons and area of extraction:
- 40% of the annual value of hydrocarbons, other than non-associated n…