According to the Ministry of Finance and Public Credit (“SHCP”), in Mexico, outsourcing schemes evaded about 21.5 billion pesos per year. Federal Government measures against these harmful schemes have generated an over-regulation that result in administrative complications for those who receive such services.
To counteract illegal outsourcing, in recent years various labor and tax laws have been amended. Nowadays, the outsourcing services client is jointly responsible for the personnel provided by the services supplier; which means that in the event of breach of labor and/or social security obligations by the supplier, the authorities can charge indistinctly the client or the supplier.
In addition, both parties (the contracting and the contractor) are obliged to provide information to the corresponding authorities. Failure to comply could result in the rejection of the deduction for purposes of the income tax and the consequent non-accreditation of the value added tax for the contracting party.
Besides, the Financial Intelligence Unit of the SHCP considers that outsourcing is a vulnerable activity for money laundering purposes in accordance with the Federal Prevention and Identification of Operations with Illegal Resources Law. Personnel supply services between the same group companies (insourcing) are not considered as a vulnerable activity.
Thus, companies that supply personnel are obliged to submit monthly notices before the tax authorities for said vulnerable activities.
We recommend our clients who subcontract personnel to verify their compliance with their obligations imposed by the different laws which regulate this figure in order to avoid sanctions by the various authorities.
We remain at your service for any comment or doubt.