Labor Related Tax Compliance - December 31st, 2017, deadline to include amounts paid to employees for fringe benefits in the payroll CFDI
The provisions established in the Income Tax Law (ISR), establish as a deductibility requirement, the obligation for companies to issue and deliver tax receipts to those who receive payments for concepts related to salaries and other benefits that stem from an employment relationship.
Due to these new obligations with regards to issuing payroll receipts (CFDI), it is vital to remember that payments or benefits granted to workers in kind or services, such as life insurance, medical insurance, food coupons, cinema tickets, subscription and monthly memberships for gyms, school scholarships, savings fund, to name a few; must be declared as an exempt income for the employees through the payroll CFDI before December 31st, 2017.
Failure to comply with the obligation of issuing the corresponding payroll CFDI, within the aforementioned period, will lead to the benefits granted to employees for fringe benefits will be considered as non-deductible and the VAT paid for these concepts will not be creditable.
Please do not hesitate to contact us should you have any doubts or questions.