As of January 2018, it is mandatory to comply with the obligations established in article 27, section V, last paragraph, of the Income Tax Law, article 5, section II of the Value Added Tax Law, and rule 188.8.131.52 of the 2017 Miscellaneous Tax Resolution, related to labor outsourcing obligations. These obligations will need to be me through an application that the Tax Authorities (SAT per its Spanish acronym) will publish on their web portal.
This application has already been activated in every taxpayers’ Tax Mailbox (Buzón Tributario in Spanish), the content of which can be found hereafter:
Contractor authorization to review CFDIs and returns
In this section, the contractor will register the contracting parties providing the following information:
• Contracting party’s tax ID (RFC per its Spanish acronym)
• Name or company name.
• Contract number
• Initial date
• Final date
The workers with whom the outsourcing will be carried out must be registered, either manually or through a batch upload.
Once the contractors and workers have been registered, the contracting party authorizes its contractors to consult the following documents:
• CFDI for salaries payments.
• CFDI for employer and employee Social Security contribution. payments to the Mexican Institute of Social Security (IMSS per its Spanish acronym).
• Monthly federal tax installments for income tax withholdings on salaries.
• Return for the definitive payment of Value Added Tax.
This authorization is granted in order for the above-mentioned information to be shared with the contracting party through the Tax Mailbox.
Additionally, authorization may be granted to the contracting parties so that they can consult information regarding the electronic receipts (CFDI per its Spanish acronym) and returns, even when they are not a related to a service that is being provided through the labor subcontracting regime.
CFDI and return consulting by the contracting party.
In this section, the contracting parties may select their contractors in order to consult the CFDIs and returns.
Notification for 2017 labor outsourcing obligation compliance
The following information must be entered in order to comply with the obligations regarding labor outsourcing for 2017:
• Contractor RFC
• Amount of transferred VAT
• Total fee for the service
• Service start date
• Service end date
Once the abovementioned information has been entered proof of receipt will be provided which will cover fulfillment of this obligation.
Should the aforementioned obligations not be complied with, taxpayers will not be able to deduct the expenses generated by the labor outsourcing services, nor will they be able to credit the corresponding VAT related to the CFDIs issued by their service providers.
At J.A. Del Río, we can provide guidance and help you comply with this new obligation.
Please do not hesitate to contact us should you have any doubts or questions regarding this matter.