skip to main content
X
BACK OK

Mexico's New Outsourcing and Subcontracting Laws Take Effect

Mexico's New Outsourcing and Subcontracting Laws Take Effect

Mexico’s reform to various labor and tax laws which prohibit employee outsourcing took effect September 1, 2021. Companies are no longer allowed to outsource personnel who perform the primary activities of a business. The new laws have impacted many US companies with expanded operations in Mexico as it was common practice to maintain the entire workforce through an employee outsourcing company.

Violations for not being compliant with the new laws carry fines of up to $220,000 USD to both the company and the vendor. In addition, any payments made that are deemed to be in violation will not be deductible for tax purposes and the associated value-added tax (VAT) paid will not be creditable.

The initial deadline for compliance was set for August 1, 2021 but was extended to September 1, 2021.

 

09/02/2021

HAVE A QUESTION?

Please complete this form to hear from one of our experienced tax specialists

 

Hide Firm Disclaimer

©2024 UHY LLP. ALL RIGHTS RESERVED.

UHY LLP is a licensed independent CPA firm that performs attest services in an alternative practice structure with UHY Advisors, Inc., and its subsidiary entities. UHY Advisors, Inc.’s subsidiaries, including UHY Consulting, Inc., provide tax and business consulting services through wholly owned subsidiary entities that operate under the name of “UHY Advisors” and “UHY Consulting”. UHY Advisors, Inc., and its subsidiary entities are not licensed CPA firms. UHY LLP, UHY Advisors, Inc. and UHY Consulting are U.S. members of Urbach Hacker Young International Limited, a UK company, and form part of the international UHY network of legally independent accounting and consulting firms. “UHY” is the brand name for the UHY international network. Any services described herein are provided by UHY LLP, UHY Advisors and/or UHY Consulting (as the case may be) and not by UHY or any other member firm of UHY. Neither UHY nor any member of UHY has any liability for services provided by other members.

On this website, (i) the term "our firm", "we" and terms of similar import, denote the alternative practice structure conducted by UHY LLP and UHY Advisors, Inc. and its subsidiary entities, and (ii) the term "UHYI" denotes the UHY international network, in each case as more fully described in the preceding paragraph.

Show Firm Disclaimer

Site Designed and Developed by Multimedia Solutions