On August 20, 2019, new rules have been introduced in Mexico with view to information that have to be submitted to the fiscal authorities for labor subcontracting. The changes are outlined in the “First Resolution of Amendments to the Miscellaneous Fiscal Resolution for 2019” (Primera Resolución de Modificaciones a la Resolución Miscelánea Fiscal para 2019).
Which information have to be obtained?
The taxpayer that subcontracts labor has to collect the following information starting August 1st, 2019:
- CFDI of workers
- tax returns
- withholdings made to said workers
- payment of worker-employer fees or VAT returns
These obligations will be established in the Income Tax Law (LISR) and the Value Added Tax Law (LIVA) for deductibility and accreditation respectively. In view of this modification, companies should review their procedures for generating information required by the tax provisions regarding labor subcontracting.
These regulatory changes could affect your business with view to customizing or support of your ERP/SAP system. Please contact us to learn about possible necessary reactions to the changes – we are happy to assist you!