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Mexico Enacts Outsourcing Tax Law Changes
Mexico Enacts Outsourcing Tax Law Changes
by Mike Godfrey, Tax-News.com, Washington
09 June 2021
Mexico has recently enacted legislative amendments to various tax laws in a bid to restrict the ability of companies to enter into outsourcing arrangements.
The changes are intended to prevent companies from circumventing obligations that would apply to them if they engaged their workforce directly, not only in relation to income tax and social security contributions but also the obligation to pay employees a share of company profits. The new law caps such shares of profits at the greater of either: three months' salary, or the average amount of such payments in the past three years.

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