A proposal published on 19 November 2020 in the official record of the Chamber of Deputies would revise provisions of the labor and income tax laws.
In particular, the measures would affect the treatment of subcontracting with regard to certain “specialized services” and would create a national registry for subcontracting companies. One aim would be a requirement for companies to verify compliance with certain labor and social security obligations.
The related income tax law changes would deny deductions for expenses paid with regard to subcontracting of personnel when the company does not have listed within its corporate purpose the provision of personnel subcontracting services.
The proposal is subject to congressional discussions and then approval by both chambers. Certain of the measures in this pending proposal are similar to an initiative presented earlier this month by the executive authority regarding companies that provide temporary or permanent personnel services. Read TaxNewsFlash
Read a November 2020 report (Spanish) prepared by the KPMG member firm in Mexico
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.