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April 26, 2021
2021-0857

Mexico enacts labor reform, denies deductions for outsourcing services

Service companies providing specialized services and projects, and companies operating under a subcontracting regime should evaluate the labor and tax impacts the labor reform could have on their operations and implement an action plan to comply.

On April 23, 2021, Mexico published, in the Official Gazette, the labor reform affecting outsourcing services, thereby enacting it. The labor reform is effective April 26, 2021. The tax provisions of the reform, however, are effective August 1, 2021. For more information, see Tax Alerts 2020-2697, 2020-2824, 2021-0815 and 2021-0846.

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Contact Information
For additional information concerning this Alert, please contact:
 
EY México
   • Oscar Ortiz (oscar.ortiz@mx.ey.com)
   • Jaqueline Álvarez (jacqueline.alvarez@mx.ey.com)
   • Juan Carlos Curiel (juan.curiel@mx.ey.com)
   • Mario Ríos (mario.rios@mx.ey.com)
   • Alejandro Caro (alejandro.caro2@mx.ey.com)
   • Juan Pablo Lemmen-Meyer (jpablo.lemmen@mx.ey.com)
   • Yeshua Gómez (yeshua.gomez2@mx.ey.com)
Ernst & Young, LLP (United States), Latin America Business Center, New York
   • Ana Mingramm (ana.mingramm@ey.com)
   • Enrique Perez Grovas (enrique.perezgrovas@ey.com)
   • Jose Manuel Ramirez (jose.manuel.ramirez@ey.com)
Ernst & Young, LLP (United States), Latin America Business Center, Miami
   • Terri Grosselin (terri.grosselin@ey.com)
Ernst & Young, LLP (United States), Latin America Business Center, Chicago
   • Alejandra Sanchez (alejandra.sanchez@ey.com)
Ernst & Young, LLP (United States), Latin America Business Center, San Diego
   • Ernesto Ocampo (ernesto.ocampo@ey.com)