Note published on July 22 in Reforma, Negocios [Business] Section by Verónica Gascón and Jorge Cano.
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Should the bill requesting a one-month extension for the entry into force of several transitory articles of the Law on Subcontracting be approved, companies will be able to continue deducting invoices for personnel contracted under this scheme.
Yesterday, Senator Ricardo Monreal presented a bill to amend several transitory articles of the Law on Subcontracting with the objective of having them enter into force this next September 1 instead of on August 1, as established.
He pointed out that the transitory articles of the Labor Reform establish August 1 as the deadline for the entry into force of the amendments to the Federal Tax Code, the Income Tax Law, the Value Added Tax Law, as well as other reforms related to this matter.
In addition to other deadlines for companies to carry out a series of actions to comply with the Law, among them, acknowledging their workers and removing them from subcontracting by July 24 at the latest or the subscription of providers of specialized subcontracting services into the registry of the Department of Labor, with a deadline of August 24, among others.
In the opinion of labor and tax lawyers, the extensions give companies the benefit of continuing to deduct invoices, but they say that the established term is insufficient for complying with all obligations.
“They want to grant an extension of one month for invoices to continue to be deductible, it is one of the first important effects.
“Even supposing this month could be gained, it is insufficient because this is a very complex, very important reform, there are millions of workers that must migrate records to Social Security, registries to be made before the Department of Labor and the criteria are not entirely clear. Companies want to comply, but there is legal uncertainty”, said Óscar de la Vega, a lawyer at the De la Vega & Martínez Rojas Firm.
Germán de la Garza, leading partner of labor services at Deloitte, said that it would be good news, as it would give companies more time to make the necessary changes to their corporate purposes, but that it is required to be extended in order to enable them to make all of the necessary changes.
Tax lawyer Virginia Ríos agrees with this; she said that extending the term by one month will not be truly helpful because the deadline for obtaining registration as a specialized company remained fixed on August 24.
She reminds us that companies have suffered in the process of obtaining registration before the Department of Labor due to problems in the questionnaires and posed by reviewers and she also recalled that there are no appointments available at the SAT [Tax Administration Service] for renewing or obtaining the electronic signature that is necessary for registration.
Diego García, a member if the Mexican Academy of Labor Procedural Law, explained that there is another bill, presented by PAN Senator Kenia López that proposes moving all deadlines to January 1, 2022.