Tax impact of Payroll expenditures for

maquiladoras 2014

Western MaquiladoraTrade AsociationNovember 2013

Adrian Ocampo

Ave. Sonora No. 13 Int 3ªCol. Chapultepec, Tijuana BCadrian@ocampo.biz(619) 666 9465

Sarting January 2014 Main Changes to payroll are aplicable:

Limited deduction of 53% of expenditures on exempt income for emplyee:

Fringe benefits, employee`s savings

loan funds,severance payments,

anual bonusovertime

vacation pemium,Sunday premium and extempt portion of PTU

If this provision do not change, they will be deductuble at 53%.If they are changed for 2013 to 2014 they will be deductible at 47%

Ave. Sonora No. 13 Int 3ªCol. Chapultepec, Tijuana BCadrian@ocampo.biz(619) 666 9465

Because this expenditures are necesary and for the maquiladora

operationa review of the efect that the

changes to the deductions of payroll expenditures is recomended from a legal (labor) and (tax) perspective.

What efect will this issue have on the APA?

Ave. Sonora No. 13 Int 3ªCol. Chapultepec, Tijuana BCadrian@ocampo.biz(619) 666 9465

In most cases the changes will cause new tax burdens on the

existing operatios

In the past the federal goverment has tried to tax

payroll

(2003 and 2004 ISCAS)

Ave. Sonora No. 13 Int 3ªCol. Chapultepec, Tijuana BCadrian@ocampo.biz(619) 666 9465

It important to analize the impact of the reform and to consider Amparo action

againts the reform.

A 30 day working deadline to file a motion in 2014 will be activaded and will end on

February 11, 2014.

Ave. Sonora No. 13 Int 3ªCol. Chapultepec, Tijuana BCadrian@ocampo.biz(619) 666 9465

Thank you

Adrian Ocampo

adrian@ocampo.biz(619) 666 94 65

Ave. Sonora No. 13 Int 3ªCol. Chapultepec, Tijuana BCadrian@ocampo.biz(619) 666 9465