Renewal of Decree that grants Tax Benefits to Employers and Temporary Agricultural Workers
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Renewal of Decree that grants Tax Benefits to Employers and Temporary Agricultural Workers

Date of Publication: December 26, 2024

Period of Validity: From December 27, 2024, to December 31, 2025.

On December 26, 2024, the Official Gazette of the Federation, [in Spanish: el Diario Oficial de la Federación], (DOF), published the renewal of the decree that amends the former decree through which tax benefits are granted to employers and temporary agricultural workers. This original decree was published on July 24, 2007.

Objective of Decree

The aim of the tax benefit is to encourage the integration of temporary agricultural workers into the formal sector of the economy, thereby promoting better working conditions and salaries for this sector of the workforce.

Chief characteristics of fiscal stimulus

  1. Beneficiary Population:
    • Employers: Those whose economic activities occur in the field.
    • Workers: Temporary agricultural workers as per the Social Security Act [in Spanish: la Ley del Seguro Social].
  2. Nature of Stimulus:
    • Tax Credit: Consists of the difference between the employer/worker dues that are calculated according to the daily contribution wage and the dues that would be considered:
      • 3.30 times the value of the Unit of Measure and Update (UMA) in force for the 2025 fiscal year.
      • For employers located in the Mexican Border Region, 4.10 times the value of the UMA will be applied.
    • Condition: The daily contribution wage, [in Spanish: salario base de cotización], must be greater than the daily value of the corresponding UMA.

Expected impact

  • Promotion of legal requirements: This decree aims to reduce cases of non-compliance with the Social Security Act.
  • Improvement in working conditions: Promotes respect for working conditions for temporary agricultural workers.
  • Economic strengthening: Contributes to the development of one of the most important economic sectors in Mexico.
  • Quality of life: It will create a positive impact on the quality of life for workers and their families.

Period of Validity

The decree comes into effect as of December 27, 2024 and will be in force until December 31, 2025.

The renewal of this tax benefit reaffirms the commitment of the government to support temporary agricultural workers and their employers by strengthening this key productive sector for the national economy.

Link

Diario Oficial de la Federación DOF

 

J.A. DEL RÍO offers a wide array of specialized consulting services to assist you with these and other matters, in order to ensure that your project complies with the applicable characteristics  contained in this agreement.

If you have any questions, J.A. DEL RÍO can provide you with our experts to advise in matters concerning compliance with your legal and tax obligations. Once again, please let us know if we may be of any further assistance to you at: contacto@jadelrio.com.

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