In Mexico, the Employee participation in profits (PTU) continues to be a crucial issue for employers and employees, highlighting its tax treatment according to the Law on Income Tax.
Specifically, the law stipulates that Profits received by workers are exempt from taxes up to the equivalent of 15 days of the general minimum wage, which currently translates into $3,111.60 pesosbased on a minimum daily wage of 207.44 pesos.
Any amount exceeding this limit is subject to tax according to current provisions. However, you should know that The tax collection will not be applied to the total of your profitsbut on the surplus that exceeds the $3,111.60 that are exempt.
This means that if they give you $5,000 in profits, you will not have to pay taxes on the $3,111.60 and The charge will only be applied to the remaining $1,888.40.
Details about utilities:
He profit sharing has a direct impact on all natural or legal persons that employ workers, regardless of whether their operations are commercial, industrial, agricultural or mining.
However, there are specific exceptions. For example, the Newly created companies are not required to pay the PTU during its first year of operations, and those that develop new products enjoy this exemption during the first two years.
Furthermore, the companies in the extractive sector in their exploration phase and private non-profit care institutions are also exempt.
It should be noted that on December 19, 1996, the Ministry of Labor and Social Security (STPS), with prior consultation of the Ministry of Economy, issued a resolution that exempts companies with a declared annual income from Income Tax (ISR) of less than 300,000 pesos of the obligation to distribute profits.
This regulation highlights the importance of understand the tax and labor obligations around the PTUensuring that both employers and employees appropriately manage these provisions to comply with the law and optimize the economic benefits of company profit sharing.
#careful #SAT #charge #taxes #profits
