Mexico City waives payment of Payroll Tax

On January 29, 2021, the Government of Mexico City published in the Official Gazette of the entity the Resolution by means of which the payment of the Payroll Tax caused in the period of January 2021 is waived for certain taxpayers who make payments in cash or in kind for remuneration of subordinated personal work, regardless of the designation granted to them.

The cases in which the waiver will be applicable will be with respect to:

• Those taxpayers whose businesses are of micro and small size that are established in perimeter “A” or “B” of the Historic Center of Mexico City, and that are registered in the Payroll Register of Mexico City, under different non-essential activities.

• To establishments whose line of business is the restaurant industry, which can prove that they have maintained or, if applicable, that they have increased their workforce with respect to that declared for December 2020.

• To establishments that, even though it is not their main activity, provide restaurant services offering the sale of food prepared for consumption on the premises.

The resolution sets forth the terms in which the relevant benefit may be obtained and the procedure to be followed in order to be a beneficiary of the same, additionally indicating that taxpayers who do not request the application of the tax benefits contemplated in the resolution within its term, will lose the right to it and will not be able to assert them subsequently.

If you would like to know more details of the resolution and how it should be applied to your company’s particular case, please do not hesitate to us.

Yours sincerely,

Cannizzo, Ortiz y Asociados, S.C.