Global

Details

  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 1/21/2013

Mexico - Travel, per-diem expenses for outsourced workers 

January 21:   In Mexico, a miscellaneous tax resolution for 2013 (Resolución Miscelánea Fiscal para el Ejercicio de 2013) amends the rules concerning when certain travel and per-diem expenses are deductible for income tax purposes with respect to certain individuals who are outsourced to the taxpayer.

A long-standing issue for the tax authorities and tribunals in Mexico concerns situations when workers are outsourced to contract manufacturing companies or other service companies. The issue whether the workers provided by related-party service providers are employees of the taxpayer, and thus, whether expenses for travel or per-diem amounts for these individuals are deductible, since they may not be the taxpayer’s employees but are outsourced employees of the service provider company.


The late December 2012 resolution clarifies that travel and per-diem expenses of workers provided by parties related to the contract manufacturing company or personal service company are not deductible by the taxpayer.


Read a January 2013 report (Spanish) prepared by the KPMG member firm in Mexico: Criterio no vinculativo respecto a los gastos por concepto de viáticos




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