All employees, except general directors, are subject to receive Employee Statutory Profit Sharing (PTU) when a company generates profit during the calendar year. Employees that worked during that period are entitled to receive a portion even if they do not continue working for their employer at the end of the calendar year. Employees cannot refuse to receive the designated amount.
PTU calculation is similar to an income tax base calculation, except:
Tax loss carryforwards
Income tax law allows companies to apply tax loss carryforwards for the next 10 years, but not for PTU calculation.
Income tax law considers 53% as a maximum deductible percentage, but for PTU calculation, 100% is deductible.
It can be reduced for income tax base, but not for PTU.
PTU needs to be paid in May of each year, and half of the amount is calculated based on an employee’s annual salary. The other half is calculated based on the working days of the employee.
For more detailed information, please contact us.
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