13- f) The sum of the taxes determined in "d" and "e" above shall be the total taxes payable. g) With respect to the excess profits tax, the profits subject to such tax for the full fiscal year will be determined and the total tax calculated; the amount payable is the proportion based on the number of days of calendar 1964 included in the full fiscal year. h) For purposes of the tax on distributable profits (Schedule VII) the same procedure as set forth in "g" above will be used. 14. Dividend income: Dividends received by Mexican companies which operate in Mexico or abroad from Mexican companies are not includable in ordinary income of the recipient since, in accordance with the new law, dividends are only taxed by the tax on income of individuals, at the time they are actually received by the stockholders (individuals) or when they are paid to foreign companies or to their branches or agencies in Mexico. 15. General requirements _for deductibility: The general requirements for deductibility continue unchanged from the previous law. In general, for costs or expenses to be deductible, they must be those that are ordinary and strictly indispensable for the purposes of the business, a normal consequence of the business and in proportion to the operation; they must be properly recorded as charges to income of the year to which they relate, except for expenses of the immediately preceding year which, for justifiable reasons, were not charged against the combined taxable income of said previous year but were charged to the period in which they are deducted, Similarly, the obligation to withhold taxes for account of others, as provided by law, must have been complied with or the deductions must be supported by documents indicating the payment of said taxes and, where applicable, the Federal Registry of Taxpayers number. Purchases of raw materials, other materials and merchandise or payments for services must be supported by invoices, receipts or documents which meet the requirements set forth in the Regulations. It should also be noted that the Treasury Department has the power TO determine or estimate sales prices, prices for services or purchase prices, when such prices differ from current market prices; for this purpose, the Treasury Department shall take into account in-voice prices, official prices, or current domestic or foreign market prices.