Mexico: Tax relief regarding subcontracting (Yucatán)

The decree is effective through 31 December 2022.

The decree is effective through 31 December 2022.

The government of Yucatán state on 22 March 2022 published a decree granting the following tax relief regarding subcontracting:

  • Tax withholders will not be obligated during fiscal year 2022 to withhold tax on expenditures for remuneration of personal work when they subcontract specialized services or the execution of specialized works.
  • Providers of specialized services will not be obligated during 2022 to:
    • Submit a notice for each establishment when they provide specialized services
    • Break down in the tax receipts the concepts giving rise to tax
    • Provide information on the total amount of the concepts giving rise to tax

Withholdings made during the months of January, February and March of the 2022 financial year must be reported and, in addition, the corresponding obligations must be fulfilled. Likewise, when tax is withheld, it may be credited or refunded as long as the withholding had been previously reported by the withholding party.

The decree is effective through 31 December 2022.

Read a March 2022 report (Spanish) prepared by the KPMG member firm in Mexico

 

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