- As part of the economic package approved by the Federal Congress for 2016, several provisions of the Income Tax Law having a collateral effect on labor relations were amended and took effect on January 1, 2016. According to this Tax Reform:
- Company contributions to savings funds will be tax deductible only when granted on a general basis, for all workers affiliated with the same union or for all non-unionized workers. This, regardless if said benefits are granted only to unionized or non-unionized workers.
- Mexican residents may perform the following personal deductions: medical and dental fees, as well as hospital expenses, provided their annual income does not equal or exceed the minimum wage per year and the corresponding payments are performed by any of the authorized financial services. Medical, dental or nursery fees, analysis, clinical tests or prosthesis, hospital expenses, acquisition or rental of equipment for the establishment or rehabilitation of the patient, derived from the disabilities referred to in Article 477 of the Mexican Labor Law, as long as the corresponding disability certificate is issued by a public institution of the National Health System, or those derived from the General Law for the Inclusion of the Disabled; no limit will apply in these cases. Regarding temporary disability and permanent partial disability, deductions will only proceed if such disability is equal to 50% of the regular ability or higher. For the effects of this subsection, the corresponding Digital Tax Receipt (CFDI) must specify that the expenses are directly related to the disability.
- The limit for personal deductions was raised to the lower amount between five minimum wages per year, or 15% of the taxpayer’s total income, including that for which no tax is paid.
- A reform to the Law of the National Housing Fund Institute for Workers (“the law”) took effect on January 7, 2016 according to which employees may file applications and motions before the Institute in writing or by any electronic means. Notices and motions by electronic means will be ruled by the law and the Federal Tax Code. The Institute will use electronic means to comply with its scope and will have the character of certification authority to issue electronic certificates to apply the use of advanced electronic signature in the official forms and proceedings of which it governs. Contributions and withholdings referred to in Article 29 of the law shall be performed monthly, within the first 17 days of the following month, through the electronic or printed forms determined by the Institute.
- The Ministry of Labor and Social Welfare issued a ruling that modified official formats DC-4 (Lists of competence and labor skills certificates) and DC-5 (Application for register as external training agent) to comply with the employer’s teaching and training obligations.
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