Legal Reforms regarding Outsourcing Background and Consequences for Companies doing Business in Mexico. By Alejandro Montes Corporate M&A Under Mexican Law, companies doing business in Mexico are bound to distribute 10% of their annual profit among their employees in Mexico. This obligation is commonly referred to as “Profit Sharing” or as “PTU”, which is the…

Dear clients and friends, The rules for the registration of these entities were published last Monday 24th and the main points are the following: Individuals or legal entities that perform specialized services or specialized works and, in consequence, provide or make available their own workers to execute the services or specialized works for another entity,…

Dear clients and friends, On April 30, the Official Journal of the Federation (“OJF”) published an Extract of the Agreement approving the Protocol for the Legitimation of Existing Collective Labor Agreements (“Protocol”). The Protocol, which entered into force the day after its publication, is one of the new mechanisms created by the labor reform published…

Dear clients and friends, On April 23, 2021, the Official Journal of the Federation published in its evening edition the Decree amending, adding and repealing several provisions of the Federal Labor Law (LFT, in Spanish), Social Security Law (LSS, in Spanish), Law of the National Housing Institute Fund for Workers (LINFONATIV, in Spanish), Federal Tax…

Dear clients and friends, Today April 20, 2021, the Senate of the Republic approved the Project of a Decree to amend, enact and repeal a number of provisions on outsourcing practices within the Federal Labor Law (LFT, in Spanish), Social Security Law (LSS, in Spanish), Law of the National Housing Institute Fund for Workers (LINFONATIV,…

Dear clients and friends, On March 30, a Decree amending and adding article 90 of the Federal Labor Law was published in the Official Gazette of the Federation (“Decree”). Aside from incorporating a more inclusive language in its wording, the most relevant amendment to article 90 is the addition of a fourth paragraph providing that…

Dear clients and friends, As a consequence of recent reforms to the Federal Tax Code (“FTC”), applicable as of January 1st, 2021, we would like to point out a few relevant topics: Joint responsibility Spin-off: With the intention of eliminating cases where the original entities transmit to the spun-off entities values that were inexistent before…

Dear clients and friends, On March 11, the Official Gazette of the Federation published the Decree amending and adding several provisions of the Mexican Constitution regarding the Federal Judiciary (“Decree”), which entered into force the following day. The judiciary reform is aimed at strengthening the role of the Supreme Court (SC) as a constitutional court…

Dear clients and friends, As we informed you in our bulletin sent in February of last year concerning the tax reform, on December 9, 2019 the “Decree that reforms, adds and eliminates several provisions of the Income Tax Law, the Value Added Tax Law, the Special Tax on Production and Services Law and the Federal…

Dear clients and friends, On March 9, the Federal Official Gazette published the Decree amending and adding several provisions of the Electricity Industry Law (“Decree”). Although the Decree was due to enter into force on the day following its publication, it was temporarilly injucted two days later, as will be explained below, and definitively injucted…

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