The Mexico Tax Administration Service (SAT) seeks to collect taxes on tips


According to the Official Gazette of the Federation (DOF), the tips received by workers are part of their salary, so the employer must consider withholding taxes.  

The Tax Administration Service (SAT) states that tips are part of a worker’s salary and Income Tax (ISR) must be withheld, according to the Official Gazette of the Federation (DOF).

According to article 346 of the Federal Labor Law, tips received by workers in hotels, nursing homes, restaurants, restaurants, cafes, bars, and other similar establishments are part of the worker’s salary.

“Therefore, the tips referred to above that are granted to workers must be considered by the employer to calculate and hold the ISR that, if applicable, is the responsibility of the worker, under the terms of article 96 of the Law of the ISR “, according to the Official Gazette of the Federation(DOF).

According to Santiago Martínez Dordella, local president of the National Chamber of the Restaurant Industry and Seasoned Foods (Canirac), there are inconsistencies since the Profeco does not oblige to suggest an amount for the payment of tips, so it is difficult to know the amounts and establish how much you receive a tip.

“This situation is going to be very complex and it is going to lend itself to misunderstandings. You have to start from that we have the Profeco to which you can not suggest the tip either in the letter or the ticket or anywhere, but you have to put up signs that the tip is optional. With this speech as now, they want to charge them proportionally because it will be difficult to determine how many tips each person earns, “Martínez Dordella told the Zocalo newspaper.

Source: forbes mx

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