New reporting requirement for outsourcing in Mexico City

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On January 1, Mexico City’s tax reform came into effect. With this change, Article 156-Bis has been added to the Income Tax chapter, which contains a new requirement to submit a notice to the Secretariat of Administration and Finance when hiring or outsourcing employees.

Notice must be submitted within 10 days of hiring or outsourcing a contractor, regardless of the concept of the services being provided in accordance with applicable regulations or whether the wages are paid by a third party. Taxpayers whose agreements were in effect on January 1, 2021 must submit the notification within the first 30 days after 2021.

The notice must meet the following requirements:

• Original or certified copy of the agreement.

• The number of employees providing the services.

• The company name, federal taxpayer ID number (“RFC” according to the Spanish acronym) and the address of the contractor.

Failure to submit notice or submit it temporarily will result in fines ranging from $ 3,713.00 in Mexican pesos to $ 9,413.00 in Mexican pesos.

This commitment contradicts the federal agreement to postpone the reform of the outsourcing regime to February 2021.

We recommend checking if this applies to your specific case to determine if the notice needs to be filed.

*** The purpose of this announcement is neither to advise or advise in any situation, nor to refrain from paying or withholding any contribution of Mexican tax law in whole or in part, nor should it be used for such purposes.