On October 10, 2017, on the Official Journal for the State of Jalisco (Periódico Oficial del Estado de Jalisco) the guidelines to facilitate compliance with obligations upon Payroll Tax withholders established on article 46 of the Income Act for the State of Jalisco were published.
The most relevant provisions are as follows:
- In connection with the obligation to withhold Payroll Tax, personnel service providers as tax subjects, may take into account the amount withheld by the service recipient in the same month the withholder makes the respective payment. For this purpose, the service provider shall obtain the corresponding withholding receipts mentioned on the Income Act for the State of Jalisco and pay, if the case may be, tax difference payable, if any.
- Payroll Tax withholding and payment shall not be carried out in the cases when the service provider is released from the tax burden, or in cases when the tax authority authorized a decrease in the tax payment as a tax stimulus.
- The obligation to withhold and pay Payroll Tax, for the period from January through August 2017 shall be understood as fulfilled when the referred service provider has paid the tax for the entire value of the services rendered provided the taxpayer obliged to the withholding obtains copy of the Internet Digital Tax Receipt (Comprobante Fiscal Digital por Internet (CFDI)) and the conclusion from this document is that the tax paid matches the value of the respective payroll; case contrary, this guideline shall not apply and the Obligations and Sanctions established in the law shall remain.
Please feel free to contact us if you have any question or comment in this regard.