When is the deadline for profits?

Are you wondering when the profit deadline is? Here is the answer: In Mexico, the deadline for the payment of 2024 profits varies depending on the employer’s tax regime: Companies (legal entities) must make the payment between April 1 and May 30while individual patterns (Physical persons) have a deadline until June 29 to fulfill this obligation.

This right, known as Employee Profit Sharing (PTU)is a constitutional mandate that assures workers a part of the annual profits generated by their employer, whether through productive activities or services offered in the market.

What does the LFT say about profits?

Mexican law, specifically article 123 of the Federal Labor Lawdictates that companies must distribute 10% of their net profits from the previous fiscal year among their employees.

This distribution is divided into two parts: one is distributed equally among all employees in proportion to the days worked and the other according to the salaries each one receives.

Besides, the section VIII of article 127 of the Federal Labor Law establishes that the maximum amount of profits cannot exceed three months of the worker’s salary or the average of what was received in the last three years, applying the most favorable amount for the employee.

It is important to note that cany worker who has worked at least 60 days during the fiscal yearwhether continuously or intermittently, is entitled to receive profits.

This applies even if the person no longer works at the company or their contract was temporary or for a specific work. Former employees have up to one year, from the delivery deadline, to claim their profits.

However, There are exceptions as to who is not entitled to profit sharing.

These include domestic workers, casual workers who have worked less than 60 days in the fiscal year, directors, administrators, general managers, partners or shareholders of the company, and technical professionals who provide services on a fee basis without a subordinate employment relationship.

Furthermore, cCertain entities are exempt from profit sharinglike the startups during their first yearnon-profit private assistance institutions with humanitarian objectives, the Mexican Social Security Institute (IMSS) and other decentralized public institutions with cultural or charitable purposes.

Companies with capital less than that specified by the Ministry of Labor and Social Welfare (STPS) For certain industrial branches they are also exempt.

Journalist with more than 15 years of experience in print and digital publications. I am currently editor of Debate.com.mx. I have a degree in Communication Sciences. I have covered diverse information sources, especially from the business areas. I usually write about personal finances, retirement, pensions, IMSS, employment, money, currencies, credits, entrepreneurship, insurance, technology, science and scientific studies in areas such as health. I like social networks, reading about marketing, SEO and literature, especially topics of politics and history. In 2018 I had to start mibolsillo.com and since then I have ventured into digital journalism.

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