On March 27, 2017, the guide to fill in the payroll receipt and its complement was updated in the part that describes how to record the payment of travel expenses to employees.
The most significant change regarding such registration is about the time to issue the CFDI and the treatment that it must be given when the travel expenses are verified.
Taxpayers who provide travel expenses to their workers may issue the CFDI in three different moments:
– In the ordinary payroll corresponding to the period of payment of the travel expenses.
– In the following payroll, after the expenses were given.
– In an extraordinary payroll, in the case that it is issued within 30 calendar days following the delivery of the travel expenses.
In accordance with the procedures established in the guide, when the travel expense receipts are turned in by the employee, it will be necessary to issue another CFDI to differentiate between taxed travel expenses and those exempt from taxes, considering the documentation that the employee exhibits as proof, and whether these receipts meet or not tax requirements.
If the CFDIs delivered by the workers do not meet tax requirements, the amount given to the worker for travel expenses will become a cumulative income for which the corresponding taxes must be paid.
The guide also tells us how to proceed in case travel expenses are not used or the employee cannot account them for.
Travel expenses are considered an exempt income for the worker only when they are backed up with valid tax receipts considering the limitation that allows us to exempt up to 20% of the amount given to the worker to make their trip, if they don’t have valid tax receipts, but not exceeding 15,000 pesos in one year.
We recommend, if your company makes these payments, reviewing the policies for granting them and checking travel expenses in order to comply with the points published in the new guide, thus avoiding consequences for not doing so, as it could have cost repercussions to the company, or an increment in the tax rate of the worker if this type of expense is not controlled and/or limited.
Feel free to reach out in case you have any questions in this regard.