On September 5, the Mexican Social Security published Agreement ACDO.SA2.HCT.290818/225.P.DIR on the Federal Official Gazette regarding Authorization to provide administrative facilities in labor sub-contracting established on Article 15-A of the Social Security Act, which became applicable on the day following its publication, that is, September 6, 2018.
The employer or obliged person (contractor) and beneficiary (contracting party) for the work or services has complied with the content of said provision when using the application known as “Contractor authorization for CFDI consult and tax returns” of the Application on Labor Subcontracting and in addition uses the application “Consult by contracting party of CFDI and returns”, managed by SAT and proceedings are carried out for the purposes of article 15A, fifth paragraph of the Social Security Act, for the purposes of articles 27, section V, last paragraph of the Income Tax Act, as well as 5th, sections II and 32 section VIII of the VAT Act, established by SAT through general application laws.
The provisions of the Agreement are applicable only regarding the contracts registered on the application “Contractor authorization only as to agreements registered on the application “Contractor authorization for consulting CFDI and returns’.
It is important to mention that the option to file quarterly notices known as PS-1 to comply with article 15-A of the Social Security Act is still applicable, therefore using aforesaid application is optional.
In addition, the obligation to inform INFONAVIT through SIRESO (Joint Liability System) is not exempt from filing, regardless of whether the Labor Subcontracting application is used.
Please feel free to contact us if you have any question or need any clarification in this regard.