It was agreed by the contracting states on article 25 (4) of the Double Tax Treaty, to comply with the provisions regarding the indirect non-discrimination principle, in order to avoid discrimination in domestic or local law of each contracting state regarding interest payments, royalties and any other expenses paid by a resident of a contracting state to a non resident, that should be deductible in the first state to be deductible in the first state and not prohibited under the argument that they have been paid to a nonresident of this state. The aforementioned shows that the objective of this principle is to demand that it is granted the same treatment to a payment made to a nonresident than another made to a resident under the same conditions. Consequently, if the federal legislator deriving from the exercise of its powers of taxation established in Article 32, fraction XVIII of the Income Tax Law applicable in 2003, the prohibition of the deductibility of the expenditures that are made abroad on a pro-rata basis with those who are not non tax payers of Income Tax under the terms of titles II (Legal Entities) o IV (Individuals) and the tax authority determines a tax credit rejecting the deduction made by the resident in Mexico regarding a pro rata basis expense paid to a foreign resident, supporting its decision on article 32, fraction XIII from this Law, this clearly results in the violation of the principle of indirect non-discrimination that has preeminence on its application, as long as the expense does not qualifies in any of the exception assumptions provided on article 25 (4) of the aforementioned agreement, that releases of such requirement in the case of income relating to interest payments, royalties or other expenses, of which it is determined to be against the applicable rules that protect the independence or at arm's length