PODCAST

Mexico's New Labor Proposals and Tax Implications for Mexican Operations

Destination Country X, Episode 05-2020 | Proposed new labor laws in Mexico may affect Mexican operating company employment arrangements and their taxation

Kimberly Majure

Kimberly Majure

Principal, International Tax, KPMG US

+1 202-533-5270

Kortney Wallace

Kortney Wallace

Principal, International Tax, KPMG US

+1 313-230-3056

Marcela Adriana Calderon Agiotia

Marcela Adriana Calderon Agiotia

Partner, Legal Employment Tax Services, KPMG in Mexico

+55 52468395

Armando Lara Yaffar

Armando Lara Yaffar

Partner, Head of International Tax Services, KPMG in Mexico

+52 5552468300

Podcast overview

It’s common for Mexican operating companies to employ personnel through intercompany services companies. However, new labor proposals—which, if passed, could go into effect early next year—have been introduced to protect workers’ labor and social security rights and may significantly change the way employment arrangements are structured in Mexico. Armando Lara and Marcela Calderon, partners from KPMG Mexico, are joined by podcast hosts Kim Majure and Kortney Wallace to discuss the proposed prohibition on intercompany services companies, the Mexican income tax implications of restructuring employment arrangements, and prospective Mexican audit risks moving forward.

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