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.
Exempt salary
Income tax law considers 53% as a maximum deductible percentage, but for PTU calculation, 100% is deductible.
PTU paid
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.
This document is intended to provide general information on a particular subject or subjects, and it is not an exhaustive information of such subject(s). Accordingly, the information in this document is not intended to constitute accounting, tax, legal, investment, consulting, or other professional advice or services. Before making any decision, or taking any action, which might affect your finances or business, you should consult a qualified professional advisor.
This document and the information contained herein, is provided “as is”. HLS Funakubo Gutierrez, S.C. (“HLS Mexico”) makes no express or implied representations or warranties regarding this document or the information. Without limiting the foregoing, HLS Mexico does not warrant the document or information will be error-free or will meet any particular criteria of performance or quality. HLS Mexico expressly disclaims all implied warranties including, and without limitation: warranties of merchantability, title, fitness for a particular purpose, non-infringement, compatibility, security, and accuracy.
Your use of this document and information is at your own risk. You assume full responsibility and risk of loss resulting from the use of this document and information. Neither HLS Mexico nor any of its partners, employees, or any thereof, will be liable for any special, indirect, incidental, consequential or punitive damages, or any other damages whatsoever – whether in an action of contract, statute, tort (including, without limitation, negligence), or otherwise – relating to the use of this document or information.
If any of the foregoing is not fully enforceable for any reason, the remainder shall nonetheless continue to be applied.
