On December 30, 2016, a decree was published on the Nuevo León Official Gazette, whereby several articles of the Income Act for Nuevo León were amended, those in connection with obligations upon taxpayers for Payroll Tax (PT), which became applicable as of January 2, 2017.

The most transcendent amendment in connection with said tax, regarding companies engaging the rendering of taxpayer services located within the State territory or at another Federal Entity, which include the rendering of personnel services inside State territory.

By virtue of the foregoing, companies engaging personnel services through a third party (understood as outsourcing companies) as of January 2017 shall withhold and transfer payroll tax for the services rendered as if they were own employees.

Companies under the obligation to withhold the tax, as established on the foregoing paragraphs, shall request registration before the State Taxpayers’ Registry as withholder of Payroll Tax and shall issue withholding receipts for Payroll Tax (on a monthly or annual basis) in the form authorized by the competent authorities.

It is important to mention that companies rendering personnel services (Outsourcing), shall inform the engaging company, the amount of the payroll and the corresponding tax for subcontracted persons to be withheld during each monthly period.  When, for determining Payroll tax withholding, the payment amount on personal work performed by engaged personnel is unknown, the withholding shall be determined by applying the rate of 3% to the total value of consideration effectively paid for services engaged during the corresponding month, without Value Added Tax.

The tax withholding established on the preceding paragraph does not exempt direct taxpayers from the obligation to file the tax return for the payment of the corresponding tax, which may include the crediting of the Tax withheld on said period.  If the case may be, the payment shall pay for the difference on the Payroll tax payable.

If, under said assumption, contact your executive (from the outsourcing company) in order to coordinate the delivery of information and promptly comply with this legal provision, and avoid sanctions in this regard.

Take into consideration that the deadline for paying payroll tax for the period: January 2017 is Friday, February 17, 2017.

Please contact us if you have any question or need any clarification in this regard.