On July 30, 2021, the Mexican Congress approved a Reform Bill to extend up to September 1, 2021, the transition period that companies have to comply with their new obligations in connection with labor, social security and tax issues, derived from the recent “Outsoucing Reform 2021”, by granting one month for such purposes.
Accordingly, the entry into force and deadline for fulfillment, as of September 1, 2021, will apply to the following labor, social security and tax obligations:
- Obtaining the Registry with the Ministry of Labor in order to provide specialized services or execute specialized works.
- The transfer of assets to the company that receives the workers in connection with the outsourcing activities.
- Tax obligations related to the Federal Tax Code, the Income Tax Law, and the Value Added Tax Law.
For social security purposes, up to September 1, 2021, as follows: the national employer’s registry by class requested to the Social Security Institute may be finished up that period; the information to be provided on the rendering of specialized services and the execution of specialized works; and the migration of workers from companies that operated under outsourcing will be regarded as employer substitution, provided that the company receiving the workers recognizes all their labor rights.
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