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Official Name: Estados Unidos Mexicanos
Short form: México
Imports – Partners:
Time Zone: Central Daylight Time (CDT) Daylight saving time DST: beginning April end of October (UTC -6)
VAT – Standard Rate:
Country Calling Code: +52
Capital City: México CDMX Pop. 22,1 Million
Population size: 131,825,491
Subcontracting:
VAT paid for subcontracted labor will be creditable to the extent the service is considered a specialized service for purposes of the outsourcing reform.
Payroll Frequency: Semi-monthly and monthly
Currency: Mexican peso ($, MXN)
VAT Digital Services:
Based on the 2020 Tax Reforms, es of June 2020, foreign residents, regardless of whether they have a PE, that are providers of digital services to recipients located in Mexico must register with the Mexican tax authorities to calculate and collect the VAT associated with those digital services from the Mexican users and remit it on monthly basis to the Mexican tax authorities.
Mexico is one of the most competitive countries for productive investments worldwide due to many factors, such as:
According to the World Investment Report 2022 published by the United Nations Conference on Trade and Development (UNCTAD), in 2021, Mexico ranked 10th place as foreign direct investment recipient, and 5th among developing economies.
Click on the icon and download the articles we created for employees and employers.
What you should know to be able to give your employees the best while you grow your company.
Know the rights and obligations under the Labor Law automatically apply, regardless of each type of agreement.
How does leaves work in Mexico and how can I glive th best support to my employees.
A Part Of Payroll Taxes In Mexico
The ins and outs of finish a laboral relationship.
|
Insurance and concept / Employer
|
Benefits
|
Dues
|
||||
|---|---|---|---|---|---|---|
|
Employer
|
Worker
|
Total
|
Salary base
|
Work risks
|
In kind and money
|
According to your work accident rate
|
0.00 %
|
Respective premium
|
Base contribution salary (SBC)
|
|
Diseases and Maternity
|
In kind
|
Fixed fee for each employee up to three times the current UMA
|
20.40 %
|
0.00 %
|
20.40 %
|
UMA
|
|
Additional fee for the difference in the SBC and three times the UMA
|
Additional fee for the difference in the SBC and three times the UMA
|
1.10%
|
0.40%
|
1.50%
|
Difference between the SBC and three times the UMA
|
|
|
|
Medical expenses for pensioners and beneficiaries
|
1.05%
|
0.375%
|
1.425%
|
SBC
|
|
|
|
In money
|
0.70%
|
0.25%
|
0.95%
|
SBC
|
|
|
Disability and life
|
In kind and money
|
1.75%
|
0.625%
|
2.375%
|
SBC
|
|
|
Daycares and Benefits Social
|
In kind
|
1.00%
|
0.00%
|
1.00%
|
SBC
|
|
|
Infonavit
|
Housing credit
|
5.00 %
|
0.00%
|
5.00%
|
Contribution base salary
|
|
The income tax thath employees pay to the Mexican government. However, it is the company’s responsibility to withhold it and pass it over to the SAT (Mexican tax authorities).
|
Lower Limit $
|
Higher Limit
|
Fixed Fee
|
% Surplus Tax Rate
|
0.01
|
746.05
|
0.00
|
1.92
|
|---|---|---|---|
|
746.05
|
6,332.05
|
14.32
|
6.40
|
|
6,332.06
|
11,128.01
|
371.83
|
10.88
|
|
11,128.02
|
12,935.82
|
893.63
|
16.00
|
|
12,935.83
|
15,487.71
|
1,182.88
|
17.92
|
|
15,487.72
|
31,236.49
|
1,640.18
|
21.36
|
|
31,236.50
|
49,233.00
|
5,004.12
|
23.52
|
|
49,233.01
|
93,993.90
|
9,236.89
|
30.00
|
|
93,993.91
|
125,325.20
|
22,665.17
|
32.00
|
|
125,325.21
|
375,975.61
|
32,691.18
|
34.00
|
|
375,975.62
|
Onwards
|
117,912.32
|
35.00
|
The days of mandatory rest are indicated in article 74 of the LFT, being the following:
I. The 1st. since January.
II. The first Monday of February in commemoration of February 5.
III. The third Monday of March in commemoration of March 21.
IV. May 1.
V. September 16.
MOUNTAIN RANGE. The third Monday of November in commemoration of November 20.
VII. December 1 of every six years, when it corresponds to the transfer of federal executive power.
VIII. December 25
IX. That determined by the federal and local electoral laws, in the case of ordinary elections, to be carried out on election day.
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