New Version of Electronic Payroll Receipts in Mexico

The Mexican tax bill for 2017 was published on December 2016 on the Mexican Official Gazette. One of the most relevant changes on this tax bill is related to the issuing of digital tax documents for payroll with new information. The bill enabled Mexican employers to start issuing this new electronic receipt for payroll until April 1, 2017.

Here are the most relevant changes on the electronic receipt for the payroll:

  • These new electronic receipts must include the employer and worker tax identification number so the provider can validate them before processing payroll documents. This measure aims to reduce the number of invalid tax ID numbers. The tax ID number should appear correctly on the online digital tax document otherwise the payroll documents will not be processed or certified.
  • There is a change to the payments and deductions categories. The new electronic receipt will be able to identify when a deduction should be taxed and when it’s tax-exempt.
  • The electronic receipt should only include the subsidies effectively received by the employee.
  • These electronic receipt will replace the income tax certificate that it was used to provide to the employees
  • No electronic receipt can be stamped showing negative figures or discounts.

Payroll regulations change each year and vary by country. To maintain compliance in Mexico, you need a partner with in-country expertise to ensure all regulations are strictly adhered to. Check back for more updates to Mexico payroll regulations on our Mexico page