Profit Sharing: Right that’s not all

Profit Sharing Right that's not all

In Mexico, the constitution provides that workers have the right to participate in the taxable income obtained by a company or employer, for productive activities or services offered on the market. This is what is known as profit sharing.

They are entitled to this share all those workers whether plant or possible, for wages and who have worked at least 60 days during the year. Although they are no longer working for that employer.

Therefore, they excluded persons receiving income from fees or where there is no relationship of subordinate work. We also offer cast do not receive directors or general managers of a company and its partners and shareholders. The idea is that profit sharing is a benefit for workers of the same.

However, it is a right that is not all.

Not all companies are required

It is noteworthy that in addition, not all companies are required to profit sharing. There are exceptions among which we can mention:
Up companies during their first year of operation. If you develop a new product, they are exempted for the first two years.

Mining start-ups during the exploration period (when there is no benefit).

Decentralized public institutions for cultural, welfare or charitable purposes.

Private welfare institutions.

Companies that generate an annual income reported for income tax less than $ 300,000.


Unfortunately, the regulation has many gaps, some employers take the opportunity to try to avoid the payment of profit sharing.

Many hire their workers for a fee, to not have to give them benefits. Other, larger, more sophisticated companies create subsidiaries service whose sole purpose is to manage payroll. These companies, by design, do not receive profits.

Some choose to hire staff using the services of a business “outsourcing” of human resources. In this sense, the worker is entitled to a share of the profits of the company “outsourcing”, but not generated in your workplace.

Finally, as are “tax” profits in certain industries are no legal mechanisms by which you can avoid or reduce to a minimum the utility (for example, investing in working capital or certain accounting provisions for it).

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