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2026 Profit-Sharing: Mexico Clarifies Tax Exemption as Peru Affirms Part‑Time Rights

New guidance seeks to cut confusion over taxes and deadlines.

Overview

  • In Mexico, only the share of profit participation above 1,759.65 pesos is taxed, and employers must withhold income tax on the excess.
  • Mexican law sets payment cutoffs at May 30 for companies and June 29 for individual employers.
  • Employers with more than 300,000 pesos in annual income that reported profits must distribute 10% of taxable earnings, split by days worked and by wages.
  • Nonpayment in Mexico can lead to inspections and fines from 250 to 5,000 UMA, which equals about 29,327.50 to 586,550 pesos per affected worker.
  • Peru confirmed that part‑time workers receive a proportional share, with sector rates of 10%, 8%, 7.5% for agrarian through 2026, and 5% for other activities, and late payments accrue interest at the central bank rate.