Personnel outsourcing and subcontracting

Why hiring a personnel outsourcing service?

The interest of entrepreneurs to large, medium and small companies, multinationals or family to hire their workforce through a personnel outsourcing service administration in México has increased over the last decade.

This is widely justified because of countless advantages of adopting this scheme work in the recruitment of your personnel. There are more benefits and flexibility to enterprises provided by contractors, among others.

In these times of constant change, also benefit those seeking a career opportunity or job.

Briefly we analyze one issue that according to the experience gained over time, we want to share with you:

For purposes of the Ley de Impuesto Empresarial a Tasa Unica (LIETU), salaries and benefits (taxable) inherent to them are not deductible, unless your company generates a tax credit applied for tax determination. However, the rule states that these expenditures paid in fiscal year shall be credited in the same period for Impuesto Empresarial a Tasa Unica (IETU.- Art. 8 th second and penultimate paragraphs of the LIETU), implying that if you don’t do it in the same fiscal year, the credits are lost therefore only refers to this limit.

When the client gets an invoice that meets the requirements set out in the Código Fiscal de la Federación and the Ley del Impuesto Sobre la Renta (LISR known in USA as IRS) will automatically be deductible for purposes of IETU.

Thus the exempt social welfare benefits outlined in section VI, Section 109 of the LISR, would not be taken into account in determining the credit discussed in the preceding paragraph, in contrast if you get and invoice of an Outsourcing service provider, the total amount of the bill is deductible.

We hope you take this brief view into account when you analyze the possibility of hiring a personnel outsourcing service, and other advantages that we can share with you later.