Important: IMSS Authorization to provide assistance in the field of Subcontrating Labor
Dear Clients and Friends:
Please be advised that on September 5, 2018, the Mexican Institute of the Social Security through its Technical Council, published in the Official Gazette of the Federation, the Decree- ACDO.SA2.HCT.290818 / 225.P.DIR with respect to the authorization to provide administrative assistance in the field of subcontracting. This decree deals with the following:
·The assistance is granted so that contractors (employers) in a subcontracting scheme, that use the SAT Subcontracting Application are no longer obligated to submit information through the IMSS-IDSE application (PS-1 format), provided the employers fully submit the information to which they are obligated in terms of article 27, section V, of the Income Tax Law and articles 5, section II and 32, section VIII of the Value Added Tax Law.
·The contracting party will not have implications in terms of the IMSS, provided it is confirmed that the contractor fulfilled its obligations in the terms of the previous section, by having the contractor use the corresponding consulting application of the CFDI (Tax Digital Invoice) and tax filings managed by the SAT (Mexican Tax Administration Service) .
·This assistance will only apply to those contracts registered before the SAT in its Subcontracting Application (APP) Section.
The abovementioned decree entered into effect as of Septembers 6, 2018.
For further reference please go to http://www.dof.gob.mx/nota_detalle.php?codigo=5536910&fecha=05/09/2018 to view the Spanish version of the corresponding decree.
Ernesto Velarde Danache, Inc.