Daily Tax Report ®

Companies Ready Fight Against Mexico Outsourcing, Tax Crackdown

Dec. 10, 2020, 8:51 PM

Companies in Mexico say a decision by the president to delay a vote on a bill banning outsourcing gives them more time to resolve government’s concerns and negotiate more flexible regulation.

The bill seeks to combat practices by some companies of avoiding paying the full sum of their tax, employment benefits, and social security by declaring lower salaries, or registering workers as freelancers, union members, or even partners, instead of as formal employees.

On Wednesday, President Andres Manuel Lopez Obrador, members of the private sector, and labor groups signed an agreement to postpone a vote on the bill until...

To read the full article log in. To learn more about a subscription click here.