In December 2012, Mexico passed legislation that delays previously enacted corporate tax rate reductions which would have reduced the corporate tax rate to 29% in 2013 and 28% in 2014. However, recently enacted legislation maintains the 30% corporate tax rate through the end of 2013 with additional reductions effective in 2014 and 2015. The legislation also limits when the flat tax credit for excess deductions may be used to offset taxable income. As a result, organizations with operations in Mexico will need to analyze the impact of the new legislation on their financial statements when accounting for income taxes under either US Generally Accepted Accounting Principles (US GAAP) or International Financial Reporting Standards (IFRS). In doing so, organizations may need to remeasure deferred tax balances as well as consider the impact on their estimated annual effective tax rate (AETR).